Moving to a rich area. Income is solid but we will only have $300k for down payment. Rates are around 7%. Is 30-year fixed best option? We hate renting but area is full of rentals. Sit out a bit longer? Have a few months to decide/
Moving to a rich area. Income is solid but we will only have $300k for down payment. Rates are around 7%. Is 30-year fixed best option? We hate renting but area is full of rentals. Sit out a bit longer? Have a few months to decide/
Nr b wrote:
Moving to a rich area. Income is solid but we will only have $300k for down payment. Rates are around 7%. Is 30-year fixed best option? We hate renting but area is full of rentals. Sit out a bit longer? Have a few months to decide/
Sorry, but rent now. Wait a bit. Everyone I've had a beer with in the past three months has told us the same thing.
Wife and I make a combined $325K (w/ one child) and we bought a 1500 sq ft. $340K home five years ago in a very wealthy area (mainly for the schools, would not live here if no child).
That house is now worth $600K (according to Zillow, FWIW) and we've put $100K in renovations.
We are in the same position as you in that we want to jump into something in the $800K-$950K range but it's just not the right time.
$925,000 mortgage at 7% for 30 years? Thanks, but no thanks. You’ll be able to refi at some point but still…
Don’t some of you have a financial advisor?
This is akin to coming on here and asking for medical advice.
Where can you get a $1.25M house in a ‘rich’ area? I assume your weather sucks.
Prices will go up if interest rates go down. Affordability won't change. Buy now if you can.
Do a 15 year if you want to be free earlier.
OP must live in crappy location wrote:
Where can you get a $1.25M house in a ‘rich’ area? I assume your weather sucks.
There are, in fact, $1.25m homes in wealthy areas. There are also $10 million homes in wealthy areas who just might be your neighbors. Is there something you are not grasping here?
I’ll take a Minnesota winter over a Texas summer.
OP. What's your income?
Housing is insane right now. Somehow I got a 4.88% rate in like February but that was 15 years and it's way up since then. I don't get why prices aren't coming down but i guess for popel who have their houses paid off, it's not a big deal.
If it’s really a “rich area” $1.25 million wouldn’t buy much these days. May as well rent and wait for rates to come down eventually. Generally the cap rate is fairly low on homes over $1 million so could make sense to rent.