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Chief
No one really knows what the housing market will do. Don’t buy a house based on the expectation that it will go up/down in value because that’s outside of your control. Buy it because it’s the right home for your family and within your income levels (which it easily is).
You can always refinance if the rates go down but you can't go to current rates if it goes up.
Wife is an exec for a mortgage lender. MBA is projecting higher. If it’s us, we’re locking in sooner than later.
Rising Star
Income to mortgage payment wise, you seem in a good spot. Just check latest Moody’s housing market report to see if you live in housing inflated area that expects a price pullback. Look at housing market trend in the nearby areas for last 4 years. If prices spiked insanely, it is your cue to not jump in.
If it's truly going to be your 'home' and not an 'investment' then go ahead any buy it now - worst case scenario you can refinance to a lower rate down the line.
People have brought stock-market like speculation into home buying decisions during the pandemic - don't listen to the noise. 20 years from now you're not going to look back and think 'I wish I would've waited a year to buy because rates went up another 2 points and my house dropped in value by 10% that year'.
At least, that's my 2cents. I just bought a home this year. Lot's of keyboard advisors out there.
Sounds like you will be fine, best of luck on the purchase!
Chief
My biggest worry is the fluctuating interest rate and potential price hikes or delays.
Pro
Doesn’t seem like you’ll be house poor with that Mortgage to HHI ratio. Sucks to have to pay close to 7% given where the interest rates were 12 months ago. That said, you should lock it in and refinance when you get the chance. Good luck!
So glad I locked in my mortgage at %2.25
Rising Star
2.6% for 15 years. Felt like insane idea then, but glad that I did!
Chief
Nope you’re well within range
Rising Star
Aren’t rates 6%+? Y’all saying it will go higher??
Pro
Definitely. Fed raises rates, mortgages go up. Fed is projected to raise another 1-2% by next year
Will you be house poor?