Honestly paying 25k towards interest and only 3k to principal for the first 10 years doesn’t seem like a good idea. I’ll pass, bubble behavior is what I’m seeing right now.
I know it seems that way. People said the exact same thing back in 2020/ 2021. Remember, you can right off interest. We're not in in the 2000's where you can buy a house on "stated income and assets" and get a loan just based on a credit score and what you said. If you’re renting, you're paying someone else's mortgage. Look, I bought a place in Dec of 23 because I had the ability to do so and was fortunate because the house already had built in equity. I hope things turn around and rates go down but when that happens - values go up negating any savings you have versus refinancing at the current equity position and saving even more. Hope that helps but I definitely understand your position.
But you buy less house than you can at lower interest rates. Im looking at a construction loan and they gave me the approved numbers and they seriously proposed that I can buy a 1600 sq ft house on five acres, no porch or garage mind you, for half a million. 25% of the losn total goes right back to the lenders hands. I clear 100k a year anf have a single car payment. I make top pay in my career field and want to build our dream home. Which I can so long as its the size of a starter home and uses basic construction grade materials.
@chadd587 thank you for submitting a comment and watching, appreciate it! Construction costs have gotten out of control. I bough land in 2021 while deployed in hopes of building a house. At that time, rates were at 2% but construction costs were really high. Fast forward to today, rates are around 7% and construction costs are even higher. I should of executed on doing the construction loan because of how much interest I would of saved. It's mind blowing looking at it today. You can always do an addition, add a garage or a porch as you save up money. Homeownership isn't right for everyone at this time. When I look at the overall economy, looking at what's going to happen over the next 30 years, the LARGEST transfer of wealth due to baby boomers passing away - people will have more money to spend on homes. Never mind all the people with low interest rates who don't want to sell, holding prices high, plus how competitive real estate is right now. That's not including the new NAR lawsuit that's going to change real estate moving forward, making it harder for Veterans to purchase.
That's a great question, mortgage rates (historically) go up and down over time. Right now, we are in a high interest rate environment. Like people before us, that took out mortgages throughout 2010 - 2020 had the opportunity to refinance into 2 percent rates. Right now, it may seem that rates will never go down but they will at some point.
Honestly paying 25k towards interest and only 3k to principal for the first 10 years doesn’t seem like a good idea. I’ll pass, bubble behavior is what I’m seeing right now.
I know it seems that way. People said the exact same thing back in 2020/ 2021. Remember, you can right off interest. We're not in in the 2000's where you can buy a house on "stated income and assets" and get a loan just based on a credit score and what you said. If you’re renting, you're paying someone else's mortgage. Look, I bought a place in Dec of 23 because I had the ability to do so and was fortunate because the house already had built in equity. I hope things turn around and rates go down but when that happens - values go up negating any savings you have versus refinancing at the current equity position and saving even more. Hope that helps but I definitely understand your position.
But you buy less house than you can at lower interest rates. Im looking at a construction loan and they gave me the approved numbers and they seriously proposed that I can buy a 1600 sq ft house on five acres, no porch or garage mind you, for half a million. 25% of the losn total goes right back to the lenders hands. I clear 100k a year anf have a single car payment. I make top pay in my career field and want to build our dream home. Which I can so long as its the size of a starter home and uses basic construction grade materials.
@chadd587 thank you for submitting a comment and watching, appreciate it! Construction costs have gotten out of control. I bough land in 2021 while deployed in hopes of building a house. At that time, rates were at 2% but construction costs were really high. Fast forward to today, rates are around 7% and construction costs are even higher. I should of executed on doing the construction loan because of how much interest I would of saved. It's mind blowing looking at it today. You can always do an addition, add a garage or a porch as you save up money. Homeownership isn't right for everyone at this time. When I look at the overall economy, looking at what's going to happen over the next 30 years, the LARGEST transfer of wealth due to baby boomers passing away - people will have more money to spend on homes. Never mind all the people with low interest rates who don't want to sell, holding prices high, plus how competitive real estate is right now. That's not including the new NAR lawsuit that's going to change real estate moving forward, making it harder for Veterans to purchase.
but why would the federal reserve cut interest rates????
That's a great question, mortgage rates (historically) go up and down over time. Right now, we are in a high interest rate environment. Like people before us, that took out mortgages throughout 2010 - 2020 had the opportunity to refinance into 2 percent rates. Right now, it may seem that rates will never go down but they will at some point.
Great info!
Thank you for watching!