Seriously. A 60bps increase in a month? Wtf?
We were right in the middle of getting a pre-approval and it's completely flipped our math and assumptions upside down. Affordability wise, it's basically knocked us out of competition for the price/tier of home we had been targeting.
On lender we spoke with recommended a type of convertible ARM that could be converted to a conventional loan at some time in the future. I'm going to look more into it but I hate the idea of an adjustable rate mortgage.
Whatever the case, I have to imagine other prospective buyers are in the same boat. Is anyone else having to find a way to manage through this?
(MD) How the hell is everyone managing these interest rates?
byu/Shakawakahn inRealEstate
Posted by Shakawakahn
17 Comments
Yeah the ARM thing is tempting but man, those can bite you hard if rates keep climbing. I’ve been looking too and had to basically reset my whole search criteria down a tier
Military housing allowance helps but even that doesn’t stretch as far when you’re looking at 7%+ rates instead of the 4-5% we thought we’d get just a few months back. Might have to sit tight and see if this market cools off some more
Got beyond lucky locking in a 5.99 early Feb
I have no advice, I’m sorry. It sucks out there
Think the 10 year bill is gonna go higher. Mortgage based on. As long as this dumb Iran war goes on , other countries will reduce purchase of our debt,need higher rates to take on US risk,my take anyway
Good question. I suddenly found myself in the same situation & am at a loss. Adjustable rate mortgages scare me but that’s all my realtor has suggested.
Cough, don’t mind me at 2.85% and looking to move 🙈
We bought our house in 1988 and the interest rate on our first note was something like 9.5%.
We made it through. I think we re-fi’ed twice, maybe three times over the next three decades. In the last several years we had a $525 mortgage payment and we were paying $1,000 a month to get it paid off early.
If you do the math and find that you can afford it, you buy. Otherwise you don’t.
New builds with fixed 3.99 FHA and 4.99 conventional.
Try going from 2 percent to 6
I absolutely would not take an ARM, but then I was around to hear my parents complaining when mortgage interest soared to 15%-18% in the ’80’s and I bought my own house right before I got to watch the crash in ’08.
If you can’t do a fixed rate on the house you’re eyeballing maybe consider more affordable homes. When we were buying rates were at around 6% assuming good credit and standard 20% down. To make the numbers work we had to give up where we were looking and buy in another county for affordability.
Lol, gl. Given the federal debt, it’s never gonna get under control. It’s the new normal. There’s no point in trying to budget anymore imo. Just work on making more money. If you aren’t making or on the path to making seven figures, you can kiss your hopes at a middle class lifestyle goodbye.
.6 % you mean, but yeah were at war it going to get higher.
Made a deal with no real estate agent involved. That let me knocked the price down in itself. My buyer will be a tenant for a couple of years and then we go to settlement at the end of the lease. I still get my 250k capitol gains exclusion and will be very positive cash flow during the lease. Good attorney drew the instruments.
If an increase of 0.6% has make it impossible to buy a house, maybe you really could not afford it in the first place?
I wish our house and rate could be assumed. We are in a predicament with too much house and a low balance and low interest rate. It would cost us to downgrade so we are are locked in.
If you were in the process already, you can bring a price match. Try your local credit unions. We got our rate down 0.5% and saved spending $10k in discount points from 10 mins of shopping.
Same here and furious. Avoiding an ARM and just realizing how much more I hate this timeline. Hope the midterms save us and I can refinance later , but still trying to find something. Other issue is now I feel like no one is listing – it’s spring and there’s garbage for sale.
You can potentially refinance later, don’t get an ARM in case it gets worse. One day the interest rates could rise above 10% and you’ll be thankful yours isn’t higher than 7%.