So Much for the Interest Rate Argument ... (6%, agent, investment)

[sheri257]

Don't wait to buy ... they said. Interest rates are going up!

Well ... 30 year mortgage rates fell a whopping .7 percent in just one day.

Before ... you'd have to pay 6.5. Now 30 year mortgage rates are down to 5.8 and falling.

Thanks to all the skeptics who talked me out of buying a couple of months ago.

Prices are still falling and interest rates are getting cheaper everyday.

[FalconheadWest]

Personally, I believe the rates are still coming down further, mainly because rates, historically, come down after an election...

However, I will say this, you can't keep chasing rates. If you need/want to buy a house, you need to go ahead and buy one. The longer you wait, the more equity you're throwing away. If you're renting while you wait, the more money you're throwing away paying someone else's mortgage helping them get equity in their property.

If everyone always chased rates, no one would ever buy. And then as you think they're going to keep going lower and lower, you miss it and they're on the rise, and then you wait for them to come down again, but then they never come back to that last level...

Run, Forest, Run!!! Chase that rate!!

[sheri257]

Originally Posted by FalconheadWest

The longer you wait, the more equity you're throwing away.

Prices in my area have dropped $100K in the last four months ...

You don't gain equity in a situation like that ... it's called a negative equity situation.

But I guess a realtor is never going to understand that.

[deno088]

All it takes is an amortization schedule and a calculator to figure out that it takes forever, in a good market, to build equity. In today's economy renting can work out to be a very smart choice.

[VictorBurek]

Originally Posted by sheri257

Don't wait to buy ... they said. Interest rates are going up!

Well ... 30 year mortgage rates fell a whopping .7 percent in just one day.

Before ... you'd have to pay 6.5. Now 30 year mortgage rates are down to 5.8 and falling.

Thanks to all the skeptics who talked me out of buying a couple of months ago.

Prices are still falling and interest rates are getting cheaper everyday.

Actually rates were around 6% on friday and fell to 5.5 on Monday.

[Brandon Hoffman]

Originally Posted by sheri257

Prices in my area have dropped $100K in the last four months ...

You don't gain equity in a situation like that ... it's called a negative equity situation.

But I guess a realtor is never going to understand that.

You do in the long run. 4 months is not the long run. What goes down fast can go back up fast. If you're happy with payments by all means move forward.

[Brandon Hoffman]

Originally Posted by deno088

All it takes is an amortization schedule and a calculator to figure out that it takes forever, in a good market, to build equity. In today's economy renting can work out to be a very smart choice.

Show me the math proving your point. Perhaps your "forever" is different from mine because I disagree with your post.

[Rakin]

Originally Posted by deno088

All it takes is an amortization schedule and a calculator to figure out that it takes forever, in a good market, to build equity. In today's economy renting can work out to be a very smart choice.

Since I own a couple of rental homes, I agree that you renting is certainly a good thing for me. It helps me build my equity in my investment properties. Hopefully you'll be a renter for quite awhile and help me retire at an early age.

[Humanoid]

Hopefully you'll be a renter for quite awhile and help me retire at an early age.

Oh you big man. But the fact is in many markets owners of recently purchased investment properties aren't getting any equity from their renter, they have negative cash flow. Many are perfectly happy to rent and let the owner subsidize their rent. As the other person says, it just takes a calculator. You can pull the same tired lines all you want though.

Don't wait to buy ... they said. Interest rates are going up!

Yeah, I thought that was a bit funny too. Although, I think rates are likely to go up a bit they are unlikely to go up much above what they were a couple of weeks ago now that Fannie/Freddie are controlled by the government. The government now has the power to at least potentially keep rates down.


The real estate agent comments are amusing as always, its like they have no idea what is going on?

[sheri257]

Originally Posted by VictorBurek

Actually rates were around 6% on friday and fell to 5.5 on Monday.

I guess it depends on which data you use ... but, obviously, the rates are falling substantially.

Nevertheless, I just glad I waited and rates are lower again. This way I'll get a low price and lower interest rates.