Anyone going through struggles of exploring first time home ownership? I’m very frugal and have built a comfortable living, and contributed to a savings acct, emergency fund, multiple brokerages including 401k, IRA, personal trading accounts, but seeing interest rates in the ballpark of 6-7% feels brutal.

Am I just better off paying someone else’s mortgage renting waiting for rates to drop?

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LOL.

Cmon man/woman - you can refinance after a couple years. I’m no oracle, but we aren’t going back to 2-3% rates for a while

likesmart

It could be years of waiting to see if rates will come down. It wasn’t until after 2010 rates dipped under 5% and stayed that way for almost a decade. I’d rather gamble and lock in a rate now and refinance if rates do drop. If rates keep going up you are stuck at a higher interest rate and still waiting to refinance. Buy a house no more than 3x your yearly income and you should be fine (however, buy what you can afford based on your spending, could be more or less than 3x your income)

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just be mindful that who you are renting from will likely increase the rent by 5% if you are on annual rent plan

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I purchased my first house December of 2020. 2% down payment, interest rate of 2.8%, total closing was less than $5k and no PMI. I now rent, and live in it with the mortgage fully covered.

I suggest just getting yourself out there, start talking to realtors, brokers etc to understand the kind of loan product in your area. I literally had this fall into my lap by just poking around having my realtor press different banks for better loan offers.

You don’t need 20% down to purchase a home, it’s a huge myth which causes a barrier to enter the market. Understand that interest rates were some of the lowest they’ve ever been and now they’re rising. It’s likely you’ll see lower housing costs as sellers market squeezes due to higher interest rates.

Just a guess, but wanted to provide what I went through to see if it would help.

funny

Thank you so much for a great response!

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Interested in this… think I’ll just be renting next year

In the same boat

Planning on renting for 1 maybe 2 or 3 years…

Look into house hacking!!!

Way more opportunities out there for home ownership than people think — you just have to think outside the box.

Happy to chat about it over DM :)

I’ll be renting until interest rates come down a little…but can also look into flexible rate mortgages?

In the exact same boat so I feel you!

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