Beth-did not want to hijack

I saw your DH does mortgages, and you guys are going to wait it out. Are you nervous of how high the rates might me though?

We are unsure. I want people at their most desperate hour. things have slowed down in charlotte, but with rates going up I feel like I should buy soon.

TIA!!

Re: Beth-did not want to hijack

ok- I want to explain this correctly

basically as the prices drop- rates go up- so generally the payment will be about the same if you buy the house at the lower price with high rates or higher price with low rates

so we would rather buy a house at the low point in the market- for a few reasons
1. the payment will be the same
2. the first 6 years of a mortgage are just paying off interest so if something happen and you might have to sell - and if you bought high- you might not get what you paid
4. you can re-fi when rates drop

bascially we don't want to own a house worth less then what we owe- which is a possibilty- no one really predicted the slow down that is occuring right now- expect my DH- my Dad who has 20 years real estate experince didn't expect his very well priced home to still be sitting with maybe 3 people looking at it

in the end you have to do what's best for you-

we also don't plan on being in the house we buy now for more then 5 years- we want to move to Florida soon

Re: Beth-did not want to hijack

thanks!

great info. My dad is begging us to wait it out. we are just nervous of a housing boom here, which I haven't seen yet.

For us, this would basically be our five year house as well.

Re: Beth-did not want to hijack

it's hard to know what the right thing to do it

rates are not the bad right now- which is another very misleading fact

I wish Jake was home to explain things better then me

if you have any questions he will be happy to help you- he has helped a few people on here and LIW

Re: Beth-did not want to hijack

thanks so much! when DH is free, I am going to show him what you typed. thanks!

Re: Beth-did not want to hijack

I hope I can help

good luck

Re: Beth-did not want to hijack

LOL lately I have been agreeing alot with Beth

and this time its no different.

I work in banking/lending - even though interest rates are higher than they were - they are still very low historically. The low interest rates is one of the things that fueled the housing boom to begin with - because as rates dropped, it was cheaper to get a mortgage, so someone who normally couldnt pay, lets say $400K, now could if the rate was lower. So people were jumping in the housing market (and this is after the internet bubble burst in the stock market, so people were weary of investing in the stock market) so more and more people bought houses for INVESTING rather than to live in (flippers) because not only were mortgages cheap, but lines of credit were too.

and inventories, especially on long island, are at the highest levels ever. Supply up, demand down. simple economics.

and houses are sitting on the market longer - search the boards, people were saying that they went to an open house and were the only ones on the sign in sheet.

If you can afford to buy now, and you feel its best for you, than go ahead. I am not getting married until next july, i am living rent free at home, so I am continuing to save with my FH until the winter (when the housing market is typically slower) to place my offer, but fortunatley the timing is perfect for me.

good luck! sending some house dust

Re: Beth-did not want to hijack

who needs Jake to come home- Meaghan sounds just like him- that is the same speech I heard Jake give his BF

Re: Beth-did not want to hijack

Posted by Beth1210

who needs Jake to come home- Meaghan sounds just like him- that is the same speech I heard Jake give his BF

Re: Beth-did not want to hijack

Posted by Meaghan729

Posted by Beth1210

who needs Jake to come home- Meaghan sounds just like him- that is the same speech I heard Jake give his BF

lol you married a smart guy!

Re: Beth-did not want to hijack

thanks! I think with the baby coming in Dec I feel like I have to jump. I have been sitting on my house fund forever and getting antsy. We love to take our time though, and we love saving...

happy wedding planning!

Re: Beth-did not want to hijack