They Signed Contracts for Their Dream Homes Last Year. Now Their Borrowing Costs Are Ballooning.

[kamapisaachi]

https://www.wsj.com/articles/they-signed-contracts-for-their-dream-homes-last-year-now-their-borrowing-costs-are-ballooning-11652607001

[mirchi_bajji]

malla news emti ante...we are seeing no slowdown in mortgage applications ani.

last year sign chesinodiki inka thappadu kada...he has to go with the application with higher rates

[Googlie]

17 minutes ago, mirchi_bajji said:

malla news emti ante...we are seeing no slowdown in mortgage applications ani.

last year sign chesinodiki inka thappadu kada...he has to go with the application with higher rates

They cannot back out saying I don’t want the house or can they not leave it and someone else who is interested can buy ? 

[hunkyfunky2]

Just now, Googlie said:

They cannot back out saying I don’t want the house or can they not leave it and someone else who is interested can buy ? 

You most likely lose the deposit - 10k, 20k minimum to 5% max (in most cases). 

Their best bet is to take ARM for 3/5 years and hope the home prices don't tank in next 3 years. If they do and interest rates don't drop, they will can't do refiinance also

[iddaritho]

They can still buy the house 

lots of equity in the house close to 100 k 

 no issues 

any one buying now will be in trouble 

[Hindhustani]

1 minute ago, iddaritho said:

They can still buy the house 

lots of equity in the house close to 100 k 

 no issues 

any one buying now will be in trouble 

Why bro buying now will be trouble? People saying still it is good to buy , later interest may decrease, can you help me to understand 

[iddaritho]

2 minutes ago, Hindhustani said:

Why bro buying now will be trouble? People saying still it is good to buy , later interest may decrease, can you help me to understand 

Peak prices , peak interest rates 

interest rates in 1983 were 12 % mortagage 

you will get Small houses 

Recession is here to stay for few years May be 3 to 4 

If you have the financial capability to tolerate the down turn  you can buy other wise it is not safe 

how ever if your are paying high rents 

it will be bad too