The housing market has been a seller's market since late 2020. This is the craziest I've ever seen it. Inventory is low, and buyers are overbidding on properties even paying cash to avoid appraisal. More and more people are trying to buy before rates go up.
This has been going on in our area as far back as 7 years ago when one of our kids and family decided to move out of a rental and buy their first home. They'd been saving up and were finally ready. We agreed that they could move in with us for a couple or three months while looking because why not? Those three months turned into a full year and why? People were bidding OVER the offering price. We never heard of such a thing in all our lives! But it was true. We saw it happening as house after house was bid out from under them even though they could meet the asking price but of course hoped to negotiate down like any normal person would but nothing was what we recognized as normal! We offered up a gift of x number of dollars to get them to where they could compete with other buyers.
Prior to that period of time our kids were making their own ways just fine. But the housing market that year? It was insanity! Given your post here, I see it's even crazier than it was back then!
LIGHT HAS A NAME
We only get stronger when we are lifting something that is heavier than what we are used to. ~ KF
What do you owe on your house and how much equity do you have now?
I owe: $195,500.
Equity: $122,500.
If you PM or text me your addres l can give you an idea what you could probably sell your house for. Don't be depressed, $122k in equity is nothing to sneeze at. You're still in good shape and in all likelihood your home has risen in value.
It's just you living alone now, so you could sell your home, move into something cheaper temporarily and invest the profit from the sale of your home. These are baby steps but at least they're in a direction towards financial security.
"I am not an American ... In my view premarital sex should be illegal" - Ajax18
Could you lower your interest rate if you refinanced with a 15-year fixed? That would be a higher monthly commitment, but you'd pay less interest and get the house paid off about when you hit retirement age, right?
Could you lower your interest rate if you refinanced with a 15-year fixed? That would be a higher monthly commitment, but you'd pay less interest and get the house paid off about when you hit retirement age, right?
About 10 years ago, I was in the 30 year mortgage that I refinanced to 15 years. My monthly payment went from about 1500 to 2000 in that deal, and my equity started taking off.
So, yeah, I agree... if you can afford a slightly higher payment, you can save a ton of your lifetime's earnings (the loan interest went from about 250 grand to around 90, If I recall correctly).
Religion is for people whose existential fear is greater than their common sense.
Cory Doctorow wrote an interesting piece about inflation and the housing market. TL/DR Rich people have too much money and no place to put it, so wall street is buying up houses. https://pluralistic.net/2022/01/27/extr ... -slumlords
he/him we all just have to live through it,
holding each other’s hands.
Borrowing rates will rise later this year, but I doubt that will be enough to keep investment businesses from buying blocks of single-family dwellings and turning them into rental properties.
Borrowing rates will rise later this year, but I doubt that will be enough to keep investment businesses from buying blocks of single-family dwellings and turning them into rental properties.
I think you're right. I also think this will have a significant impact on Americans' ability to accumulate wealth.
he/him we all just have to live through it,
holding each other’s hands.
