As someone who was hoping to buy a home in the next few months, I’m feeling pretty down about these interest rates! Do we think it’s a bad idea to buy now?

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Here’s why I don’t understand - I know rates are bad but at least you’re building equity. With rent just being a pure money suck, why is it more economical to continue renting? Assuming rates eventually go down, can’t you refinance in a few years? Please ELI5.

Disclaimer: I’m dumb.

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Most of the rest of that payment is taxes and interest, however, remember you are getting a deduction for the first $10k of property taxes and interest on the first $750k of home value. If you are big law your marginal tax bracket is probably at least 32%, so the amount recouped in deduction is significant.

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Regardless of rates, building home equity if you are able is usually the better financial move. Go for a low closing cost ARM. With a Big Law salary you can probably afford to make more than your minimum mortgage payment. Plan to refinance in a few years when rates stabilize. Also remember that when you buy your mortgage interest and property tax are deductible so at least you can recoup something back that you don't get when renting.

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Yes, mostly because housing rates are insane. I would delay, if possible.

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It’s not even cheap to rent in most places anymore. If you have the cash for down payment, your mortgage will prob end up being the same as monthly rent or close to it tbh. It’s wild out here. Be safe.

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Housing prices will probably drop in the next few months due to interest-rate-related reductions in demand

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My offer was just accepted for a house. Inventory is low, so if you see something you love then go for it. You can always refinance later. My mortgage is about 900.00 more, but worth it in my opinion since I’m building equity

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These are normal mortgage rates. The mortgage rates you’re referring to were historically and insanely low. You may never see rates like that again. Our lifespan is not that long.

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Rates aren’t going down. Don’t worry about timing market. If you see a house you like and can afford, buy it.

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Are you the same one that posted several months ago that was deflated by home prices and everyone said to just pull the trigger?

Wisely done SAA1!

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