prices go down just as fast (or faster) than they go up. plain fact.

 

in certain situations I'll cover the closing costs...ie..arms: makes sense to take a higher rate and no closing costs for short term lending.....but for long term lending, you come out much further by paying/rolling in the costs up front and getting the lowest rate


Scotty that info wasn't for you btw (beat you 2 the punch before jumping on me for handing you 101 info )


Joe who? j/k.....he's still alive...doing his thing

 

I'll have to take a look into this. I'm playing on purchasing a townhouse in NJ and will stay there hopefully for no more than 3-5 yrs. RIght now i've got a deal with 30yr fixed at 5.5% (It's an 80/15 so the 15 is at a higher rate of 7%).

I really wish housing prices would fall though. It's ridiculous when you're paying $450k on a townhouse with no basement and only 1 garage. Just 2 yrs ago that much money could've gotten me a decent colonial in a sweet subdivision.

I'm on the fence... do I wait till the eventual market correction or jump in now. Either way the costs will equalize (wait for prices to come down=eventual interest rate hikes).

Sucks to be in the market right now. Buyers are getting screwed from both ends.

 

why don't you just rent? in most areas, the cost to rent is less than the interest costs alone.

in my area, many properties are selling for 300-400x monthly rent. 180x is the upper bound as far as being able to buy being cheaper than renting.

IMO, I think many areas are going to fall. Real estate is attractive due to the INCOME potential, not the appreciation. 180x is the most you can pay and make money renting a place out. Now, too many think of houses like stocks. Some say that real estate is "different" because it is a tangible asset. So are commodities that take huge price dips. eventually, investors will smarten up after a huge loss. happens all the time.