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I'm so tired of hearing this interest rate nonsense.
It's *better* to have a lower purchase price than lower rate. With a higher purchase price, you will always be stuck w/ that price no matter what.
I don't knooooow, but I think this might be incorrect.
I'm so tired of hearing this interest rate nonsense.
It's *better* to have a lower purchase price than lower rate. With a higher purchase price, you will always be stuck w/ that price no matter what.
Sheenie, I agree w/you alot, however here I don't. If say the interest rate goes up 75-100 basis points by the end of the year (not too much of a stretch), it will really kill people in terms of how much their monthly payment will be esp in higher mortgages....
Sheenie, you can be tired of it but that does not change the fact that a several point jump in the interest rates can make even a great house price much harder to afford, if not impossible. You can just get so much more home when the interest rates are what they are now.
You are confusing the price of the house with the price of the financing. Anyone's objective in home buying should be to minimize the price so you don't have to finance as much. Somehow people have forgotten this and instead buy as much as can be possibly financed. This is why we are in a market meltdown now.
Sheenie, I agree w/you alot, however here I don't. If say the interest rate goes up 75-100 basis points by the end of the year (not too much of a stretch), it will really kill people in terms of how much their monthly payment will be esp in higher mortgages....
Work the numbers and look at it again....
True only in a scenario if prices are stable or going up. But not in a declining market.
You are confusing the price of the house with the price of the financing. Anyone's objective in home buying should be to minimize the price so you don't have to finance as much. Somehow people have forgotten this and instead buy as much as can be possibly financed. This is why we are in a market meltdown now.
Sheenie, you can be tired of it but that does not change the fact that a several point jump in the interest rates can make even a great house price much harder to afford, if not impossible.
Oh sure. It will make a house price harder to afford.
That's why home prices will go down to compensate for high rates.
Quote:
You can just get so much more home when the interest rates are what they are now.
I disagree. You seem to be under the impression that housing values are determined by something other than what a buyer can pay.
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