I got approved here in Oregon at 5.5 interest. Should I stay away from buying? The crazy thing is my credit is excellent

@@sergioestrada4975 if the homes are overpriced in your area you may want to do a lot of research first

That part!

The problem is really utilities also, when energy costs go up everyone gets screwed.

I had someone buy a home. Mortgage came out to 3000$, but after gas, electricity, water, sewage, insurance, PMI, and other expenses it is close to 4000$. That is crazy. I only pay 1200$ for rent still.

@@Cyborg1170 This is the point I'm making but also, if you have a good lease it'll state exactly what the landlord pays in fixes. In Cary North Carolina it was like $1000 a month pre-pandemic for a nice 2 bedroom 2 bathroom, fully walkable to everywhere, and it was great. Never had to worry about maintanence or anything and could bicycle wherever I needed to go saving in gas. When the gas shortages came up in North Carolina, wasn't effected at all by it. Now those rentals are $1600 though, so there's the problem right there. If the rent was still at 2019 levels I'd be rolling high right now, personally can't afford the 50% more over 2 years : / Renting you can invest in other things, in fact, stocks have since 1960-1970 gone up probably about double the rate housing has, so if you invested like 60 years ago into stocks instead of housing, just ignoring crashes and just keeping at it, you'd have just as much if not more than investing in property. Also, with renting you have mobility, it's better for a bachelor or single lifestyle, while buying a home seems more for a family kind of deal. The REAL problem ISN'T renting vs buying, you shouldn't be running from renting with buying a house. The real problem is the currency is devaluing and devaluing more and more and the whole everything shortage that's causing price increases EVEN WITH the raising of interest rates.

salaries are going up provided if you are switching jobs often.

Same. My interest is 5.125 locked. Closing the 14th. All I want is to see the wife happy and kids with a large backyard.

@The Failed Financial Advisor We got really good deal on our house, it's only 20k over asking price. Good neighborhood, and only 25mn from our workplace. We don't plan to move anywhere in 20 years, we probably do when we both retire. My wife and I are ready for this future, we're both making good money. We're planning to have kids after we get the house. So this is our future, I can't just sit and pray for the market crash to build my family.

same, I had 3.3 and jumped to 4.125. We close 4/22.

@@BURNTKNIGHT23 they will be so happy when you cant afford the payment and consequently lose the home. Causing your relationship to suffer and ending in a divorce which will cause your kids to grow up in Separate households, referring to the guy their mom is dating as “dad”. Which you cannot stomach and eventually get arrested for assaulting the guy. The end

@@PerForMSR nah. I make 7 times the monthly payments my house mortgage will be. I’ll be fine lol.

Yeah, but average price here is 400k, so a 30 year is like almost 3k a month. That's not very competitive

Agreed. I’m on an 18 month extension I signed December 2020, before the market started going crazy. I’ve noticed smaller units in my complex went up a few hundred dollars last year. The unit above me with the identical footprint just listed for over $700 a month more than I’m paying right now. Thankfully I’m closing on a house next week (earlier than I planned to in 2023, but I don’t regret it at all).

@@digleman1 sure but you also get a return from this as well. when you rent, you are just paying the landlord's mortgage.

Agreed. We closed last Monday because rent went from $1,100 to $1,500/month for an 1,100 sq ft duplex. with more increases forecasted. Other rentals in the area are approaching $2,500 for a house our size. Rent never goes down and now we are in a nice 1,650 sq ft remodel with a $1,350 mortgage.

I’m about to just move out the country lol $2000+ for rent or mortgage is insane either way, working remote we can live like kings elsewhere. The American dream is dead.

The interesting contra to this is, where else can you get loans at 4.5%? Your better off investing that extra money, plus 30 years from now you'll be paying back that principal with much depreciated dollars

Shiiit! Story of my life.. i got a significant raise at work right when interest when up… the first time in my life i was about pissed about a raise lol…

Where do you live?

How, why 70k less?

You way over paid , track houses fall like a brick

Look into the NACA program. No down payment, no closing costs, no PMI and 1% below the national average interest rate. It's a real program for first time home buyers and is completely free.

Man that’s deep.

@@blerdstatic8187 Its not easy to get naca loan

@@six6goddess214 trust me I know 😂.

@@blerdstatic8187 My Tenant been getting to get NACA for years now. I have to fill out the Landlord portion rent reporting.

I'm in the same boat. I bought new construction last year in April. My location is in high demand, my house went up 38% in one year. At today rate and house price I could no longer afford the house I bought just one year ago. So crazy. My friend was also looking but couldn't close a deal. Now due to the rate and price increase they have to downsize or look in a different city. Sometimes waiting doesn't pay off.

my house cost less than yours......$415k for a small "home" isnt something to brag about 🤷‍♂️🤷‍♂️

@@damiandmb2092 who said anything about bragging?

I bought a new construction home from Lennar in September 2020. I myself bought it for the exact same reasons Javier pointed out. I have to admin I was worried that at some point the real estate market would crash and here I was buying at the peak. Today I am very glad I bought. The house has appreciated nearly 50%. The truth is, nobody have predicted something like this would happen. I wish the prices would go down by 10 or 20%. I am ready for a second house, but not at this prices.

Lol you really think that place you bought is really worth almost double what you paid just over a year ago?? And that doesn’t scream bubble to you?

5%? I live in Florida, there is no law that is stopping landlords increasing rent . my rent got up 60% within 1 year

Easy for you to say. You bought your house for pennies…. Then you probably refinanced several times to much lower rates all while watching your home value sky rocket.

@@heslind he's still correct about what the issues are

Ask your self if you bought a car for 1000 and now the market value is 5000 are you going to sell it for 1000? Greedy sellers is a ridiculous statement. Sellers want the most for their house like all sellers do for all things. When buyers complain about greedy sellers, it tells me they are being priced out of the market. Unfortunate but not the sellers fault.

How about this - the interest rate on its own doesn't suck, the home prices on their own don't suck, the combination of the current interest rates and current home prices suck!

I think your second half highlights the problem, interest rates alone wouldn’t be an issue, it’s just the combo with high prices is what makes it crazy. I’m not seeing prices go down with the rates up yet.

You are so wrong.. Just look at the stock market; s&p is literally down 25%; could go down even more. The housing market in 2008 went down by a huge margin. So… it could go down to a price that you want it for, you just have to be patient.

So true. We...mainly ME were waiting for crash at the end of 2020. My wife on the other hand was ready to buy when we were ready. We found a house and closed November 2020 @ 2.75%. Moved in January 1st, 2021. Here we are March 22, 2022 and we're out of our house and neighborhood by a MILE. Our house and surrounding house are valued 50-55k+ than when we bought it. We wouldn't even WASTE time looking in our neighborhood now. We're in the North Houston suburbs of Montgomery County. Good look on waiting. People may have to get what they can. My mortage is EASILY cheaper than my rent. Even with tax assessment increases.

@@noname-mm9of the S&P 500 is up 16% if you compare it to 1 year ago

@@noname-mm9of being patient is definetly a strategy but its really hard to predict when the market is really at the bottom or if it's just gonna spike soon after. We needed to buy last year otherwise we would be renting and seeing how rent would increase too it and interest rates still low we decided to give it our best shot and we got it at 3% in a modest house in a nice neighborhood though our house was 25% over what people paid in the neighborhood in 2019 we did get a new roof from the seller and new kitchen and refinished floors. It still needs work to be 100% but we feel we made out okay compared to 2022 rates and prices. Covid seemed to have accelerated inflation and lowered by power at the same time and I doubt it will go down much for many years if at all. It might just not increase as much per year as it cools down instead.

Seriously! Thank you

This!!!!

Yeah no shit, he mentioned that

This is what I'm hoping for honestly lol. I've been saving up my money, for a couple of years now. In a much better position than I was, but these small, old, outdated and overpriced houses is what's holding me back from buying. I live in Illinois and our property tax is real high (over 8k). Can't justify any of this.

@@truearabhustla I think you should get a 203k loan and just renovate an older home. That's what my husband and I did and it's like having a brand new house. I live in Homewood Illinois, right outside Chicago so I know all about those high taxes!

Foreals I got mine at 2.5. I did my research and ignored all the people that said it will crash without doing any dam research.

@@jaybeastn604 not yet.

@@iishyxvietxboyii1 whats your claim? 2008?

Rates will continue to go up. The fed literally said there will be 4 rate increases this year. They already made 1. There will be several more and they will have to get extreme to tame this crazy inflation going on

8%? Is that a typo?

Don't mean to pry, but how many properties would one have to own to live life?

@@MythicRealTrap no

@@samstoff I have 10 doors collecting rent all profitable thanks to the refi. I did not pay any of these ridiculous asking prices now

@@MythicRealTrap I was paying 8.75% on my first home back in 2000. 30 year fixed. I didn't thing anything of it.

Yes, they do get multiple bidders! We put an offer in very very old house that needed to be renovated completely, put 5 k over asking, we have 0 debt, 40% downpayment, 15 days closing, everything was just perfect for us to win, and we didn’t 🤷‍♀️

Interest rate is not high, the high is house price.

I actually remember when I bought my first home with my ex. We had a fixed interest rate of 7.5% on a VA loan so 4.5% is not scary to me. Of course, houses were much more affordable then

Exactly!! Historically under 7 is still great

Lol 2009 home prices were a lot lower, genius!

50 - 60k over asking? Haha, that's cute. Come to Australia and see how much people overpay for property here.

@@mjb6446 dumb austries lol

Yeah...I'll wait it out.

True, but 4.5% is 50% higher than 3% rates. That means you are paying 50% more interest than people are that locked last year. Very dumb if the principal is now 20% higher as well.

Can’t deduct mortgage interest anymore. Trump took that away

@@uklb51 If we had access to a time machine, your point would be relevant. The point is you have to deal with the present. Forget the past and deal with now.

@@IIVVBlues you don’t need a time machine. The fed is locked into raising rates. Affordability is at an all time low. Inflation is further pushing people’s budgets. When supply hits the market, it’s impossible for buyers to absorb it unless we start 40-100 year mortgages. When prices stabilize look for more supply to hit as sellers will feel better about finding a new home. This moment right now is bar none the worst time to buy since 2007.

@@jessieh.8443 Thats incorrect.

🔊🎶🎵🎵🎶🔊

@Beyond Tribalism you don’t want to put any money down if you don’t have a lot of money in your savings makes no sense you know

🧢

0 down makes no sense whatsoever

@Beyond Tribalism it makes sense otherwise you will rent forever in return for getting into debt your getting a home which you will pay of over time and it will Be yours

Agreed. We one of our homes (moved mult times) in 2004 and we feel 5.75% was fabulous. 2007 we had a 3 yr arm and lucked out with the housing crash rates dropped and we were able to refin long term. However we bought at the height of the market. Took until now for the price to come back. Honestly it’s better to have a high interest rate and a cheaper house price. People need to stop complaining about the rates. They were artificially low for way too long and now we have institutional buyers using homes as assets and really through off the market off. It wasn’t like this 10-15 years ago. Anyhoo- just do what’s smart for your personal situation

In Manhattan you still have to deal with proximity and upstairs neighbors when you buy.

@@BKLNHobo Buying in the city is obviously different. You gain access to much more options and stores with everything being in close proximity and no need for a vehicle.

I agree!

This is why I don’t like Ramsey …. If I wait to have a perfect situation where I have money stored all over then it will never happen. I’m all on my own so I get creative and I’ll make it happen!!!! Use the brain 🧠! Work hard and most importantly smart !

@@marilynsaenzdeviteri6009 Dave Ramsey is a grumpy old fart who wants people to believe that his way is the only way.

Did you go back to 30 years? Or 15 years?

Totally agree! If people look at rates over the last 30 years, they would think the interest rates now are superb.

I would rather take a 17% on 1982 prices than the prices now at 5%. The price doesn't make this relative.

@@shanewillbur1325 Good point. Although the US median income in 1982 was around 20,000. Today it's around $60,000.

@@GloriaBrintnall And homes were cheap, prob 40-60k

I'm in the exact same situation. I didn't do my research at first and found out certain lenders will offer "extended locks" which will let you lock in early with certain stipulations

I am not going anywhere. My property taxes are locked in at no more than 2% increase a year and I have a 2.5% fixed mortgage.

The housing market has a LOT more demand than supply. A little higher interest rate will not make the prices drop. Maybe in Rochester NY but not in the Phoenix metro. They will likely continue going up but not as fast as they have been. Just sold my house, had 2 people tell me my house was priced too high. Also had 4 offers within 24 hours 3 of them a lot over asking and the winning bid 26k over ask with no contingencies. For every one person thinking oh wow this house is too expensive there’s 2 more people willing to pay more than ask.

Good luck on your son getting his offer accepted on a VA loan. The GI Bill doesn't exist anymore.

@@iDigress77times what you talking about he’s already approved at navy credit union and my friend from work just used his two months ago to buy a house so I don’t know what your talking about!