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Wouldn’t it have been better to save that $225 a month from the beginning? I see not having to refinance as a pro not a con. There’s always HELOCs if there’s a need to borrow in a few years
Right but your paying more for the house. I bought in 2016 and refinanced taking advantage of the lower rate.
It really is true--at least in my neck of the woods. Via the most recent real estate transfer listings, I just learned of a second home in my neighborhood that recently sold for at least $100k over its value a couple of years ago.
That particular home is the same model as mine, although its totally bare appearance lacks any landscaping and has no perimeter fence. And yet, this home that is essentially identical to mine, just changed hands for $100k more than what my home was appraised for in late 2019.
Same happened here. Homes were in the $400k to $500k new. Crash happened, same house worth about $300k. Local realtor texted to say a house sold for $100k more which was some what in line with what the seller originally paid when new
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Originally Posted by JG183
Doubtful.
Even if they do, it will be gradual.
If true, it'll still only put a small dent in demand, as there are alot of buyers currently on the sidelines...
Yes, it looks like it's a slight increase. I went to google to make sure it was as I'd heard in the realtor email and from going to the real estate section.
The average rate for 30-year fixed-rate mortgages increased to 3.18% from 3.15%.
A slight increase in mortgage interest rates was enough to tank refinances and bring down overall demand.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) increased to 3.18% from 3.15%, with points decreasing to 0.35 from 0.36 (including the origination fee) for loans with a 20% down payment.
While the rate increase was small, refinance demand fell 7% for the week and was 9% lower than a year ago. So many borrowers have already refinanced at rates below 3% that there is just not a lot of opportunity left.
Some mortgage and refinance rates have increased since last week, but others have decreased. The trend is similar since this time last month — rates are fluctuating, but there isn't a significant shift up or down.
Mortgage rates may change a little from week to week or month to month. But Marvin Loh, Senior Global Macro Strategist at State Street, told Insider that rates should stay relatively low until late this summer or even into autumn.
Since last Tuesday, 15-year fixed mortgage rates have held steady. Rates on 30-year fixed and VA mortgages have increased, while rates on 7/1 ARMs, 10/1 ARMs, and FHA mortgages have decreased.
But when it comes to overall trends, we’re far more likely to see a steady increase in rates than any substantial drop.
Some agencies predict rates as high as 3.5% or 3.6% by the end of summer. Others think we’ll see a more modest increase to around 3.3% in the same time frame.
Though exact forecasts vary, the consensus is for higher rates in the near future.
Mortgage rates are closely tied to the health of the U.S. economy. And the country as whole is on an upswing, which should lead to higher rates in June and the coming months.
But we still believe mortgage rates are set to rise in June and the following months.
The simple reason is that the forces likely to drive rates higher are much stronger — at least at the moment — than those that could push rates lower.
What could push mortgage rates down? The most probable cause would be a resurgence in coronavirus cases.
An outbreak of a new, more vaccine-resistant COVID strain in the U.S. could put a major damper on the current economic outlook.
Even a renewed wave of the virus outside the U.S. could have a sizable impact.
I'd reckon that if someone could afford rent plus student loans, then they could afford mortgage plus student loans. The big barrier is saving enough for a down payment, which might require as much as $100k these days to avoid PMI. And I haven't saved nearly enough on waived student loan payments to approach anything that looks like a down payment (does cover a trip to Hawaii though lol).
And I've been keeping a close eye on the market. You're just not going to find affordable homes in North Jersey unless you're looking at Warren or Sussex. Maybe young people can consider condos, but that's not my preference.
We're going to be hearing about people with student loans that bought houses during the time their loan was on hold because I see that Biden has removed the hold, the payments are expected to start some time in the fall.
I saw another article that says more and more people are graduating with student loan debt in the 6 figures. It floors me to read that going to a school like Penn university can cost $70,000 a year. More student loan borrowers carry six-figure balances
That means that 4.6 million of 42 million borrowers are continuing to pay down their debt.
- Here’s what life is like without the monthly payments
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In the meantime, Olivia Elder, 24, is enjoying a life that no longer revolves around paying down her student loans. She left George Washington University in 2018 with more than $30,000 in debt, and had been throwing all of her extra cash, including her tax refunds and bonuses at work, to the balance.
“There was never a ton of money in my checking account,” Elder said. “It wasn’t comfortable.”
The pandemic — and the break for student loan borrowers — has changed her priorities.
Recently, Elder, who works in criminal justice reform at a political organization, became the owner of a two-bedroom condominium in Washington, thanks to a first-time homebuyer program in the city.
Even when her student loan bill resumes, Elder said, she’ll probably just make the minimum payments. She cares much more now about building up her own savings.
During the break from her $500 monthly student loan bill, Morgan Hopkins, director of political strategies at a national nonprofit, has paid off more than $12,000 in credit card debt and has started saving for a down payment on a house in Philadelphia.
Hopkins, 32, would like to buy a home within two years with a backyard, and she and her partner are thinking about children, too.
“It’s been completely life-changing,” Hopkins said. “I used to feel like I was suffocating under student loan debt.” She still owes around $68,000.
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