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Old 08-09-2011, 01:51 PM
 
2,844 posts, read 3,826,120 times
Reputation: 2721
Quote:
Originally Posted by Flat2MT View Post
What's wrong with these statements by msdmoney? I don't see anything incorrect with this.

Buy the price and not the rate....
See my post #18.

Why not buy the price AND the rate? Prices and rates are very low right now. The last couple of times that interest rates went up significantly, prices in general did NOT come down as a result.
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Old 08-09-2011, 01:53 PM
 
Location: Baltimore, MD
3,768 posts, read 3,943,694 times
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Quote:
Originally Posted by ETex2 View Post
See my post #18.

Why not buy the price AND the rate? Prices and rates are very low right now. The last couple of times that interest rates went up significantly, prices in general did NOT come down as a result.
So you're saying buying now, while both are low is a good idea? Because that is my plan.

Once prices start going back up, I may get cut out of the market until I earn more money. And that could be 2-3 more years.
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Old 08-09-2011, 02:10 PM
 
2,844 posts, read 3,826,120 times
Reputation: 2721
Quote:
Originally Posted by Miss Crabcakes View Post
So you're saying buying now, while both are low is a good idea? Because that is my plan.

Once prices start going back up, I may get cut out of the market until I earn more money. And that could be 2-3 more years.
Find the best deal you can and go for it. The fed just announced that rates will be kept low until some time in 2013. In some markets, supply and demand is leveling out and prices are on the upswing.
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Old 08-09-2011, 02:13 PM
 
1,557 posts, read 1,585,711 times
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Quote:
Originally Posted by Miss Crabcakes View Post
So you're saying buying now, while both are low is a good idea? Because that is my plan.

Once prices start going back up, I may get cut out of the market until I earn more money. And that could be 2-3 more years.
This is exactly what you should do. I'm here in DC, I just bought a condo with an interest rate of 4.25%. My loan officer told me today that interest rates will probably go up this week (to what he didn't tell me, but all signs pointed to it going up). Ask yourself if it's going to be at 4.25% a year from now, two years from now? It's the lowest its been since the 70s, I believe. I had the exact same fear as you, I didn't want to be priced out of the market, its the perfect time to buy.

Your plan is fine, just because you don't have kids now doesn't mean you won't have them in the future. If you can afford the mortgage payment, the down payments etc, get the 3 bedroom house or whatever it is. You're planning ahead!

Last edited by DomRep; 08-09-2011 at 02:25 PM..
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Old 08-09-2011, 02:27 PM
 
Location: Baltimore, MD
3,768 posts, read 3,943,694 times
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Quote:
Originally Posted by ETex2 View Post
Find the best deal you can and go for it. The fed just announced that rates will be kept low until some time in 2013. In some markets, supply and demand is leveling out and prices are on the upswing.
Just read.
Federal Reserve to keep fed funds rate low until 2013 - Aug. 9, 2011

Yes! Some good news!
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Old 08-09-2011, 02:30 PM
 
Location: Baltimore, MD
3,768 posts, read 3,943,694 times
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Quote:
Originally Posted by DomRep View Post
This is exactly what you should do. I'm here in DC, I just bought a condo with an interest rate of 4.25%. My loan officer told me today that interest rates will probably go up this week (to what he didn't tell me, but all signs pointed to it going up). Ask yourself if it's going to be at 4.25% a year from now, two years from now? It's the lowest its been since the 70s, I believe. I had the exact same fear as you, I didn't want to be priced out of the market, its the perfect time to buy.

Your plan is fine, just because you don't have kids now doesn't mean you won't have them in the future. If you can afford the mortgage payment, the down payments etc, get the 3 bedroom house or whatever it is. You're planning ahead!
Yeah. The 5-7 year plan is 2 kids. Sounds like you got a good deal.

I actually had a house under contract in late 2008, right before I lost my job and the interest rate then was 6%, which then was considered good. We got the house for $167k for only 2 bedrooms. Now I see 3 and 4 for that price.

I am so glad to hear rate will remain low for a good while.
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Old 08-09-2011, 03:09 PM
 
Location: My Private Island
4,928 posts, read 4,464,822 times
Reputation: 12139
Quote:
Originally Posted by Miss Crabcakes View Post
Yeah. The 5-7 year plan is 2 kids. Sounds like you got a good deal.

I actually had a house under contract in late 2008, right before I lost my job and the interest rate then was 6%, which then was considered good. We got the house for $167k for only 2 bedrooms. Now I see 3 and 4 for that price.

I am so glad to hear rate will remain low for a good while.
Miss Crabcakes,

Give some thought to breaking your lease as well. Don't let the fear of not wanting to pay $2,200 end up costing you MUCH more in higher interest rates and home prices. You may be able to do some negotiating with the landlord if you've been good tenants. I'd start seriously looking at properties and if you find the right one, go for it.
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Old 08-09-2011, 07:41 PM
 
Location: MID ATLANTIC
3,911 posts, read 8,265,120 times
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It looks like we are going to be seeing 4%, possibly better in the near future, with talks of going even lower. Yikes.
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Old 08-10-2011, 06:49 AM
 
Location: Lowcountry
764 posts, read 971,945 times
Reputation: 410
Quote:
Originally Posted by ETex2 View Post
See my post #18.

Why not buy the price AND the rate? Prices and rates are very low right now. The last couple of times that interest rates went up significantly, prices in general did NOT come down as a result.
For most of the country, it's a buyer's market so prices still have a way to go to get the market into equilibrium.

Not sure if a % point rise/fall in interest rates is really 'significant'
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Old 08-10-2011, 11:35 AM
 
613 posts, read 724,078 times
Reputation: 379
Should we wait for a while (6 months or a year later) until the price goes down near to the bottom? At that time, even the rate can be higher, but the price is lower.
How do we know when is the best time to buy a house for living, not for investment.
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