New house construction question?

[SardarGabbarSingh]

Bhayya, nenu last August lo new house sign chesa appudu intrest rate 4.5% unde and current interest rate 6.5-7% undi and increasing more. Na house July 2023 lo handover chesta annaru. 1st installment I made a minimal. 2nd installment January 2023 lo katali…
so, my question here is should I continue proceeding with buying that house? Or can I back out look at the increased Interest rate? If I back out what will be the consensus I will have to face in feature? 
please help me with your thoughts and opinions.

 

thanks !! 

[csrcsr]

4 minutes ago, SardarGabbarSingh said:

Bhayya, nenu last August lo new house sign chesa appudu intrest rate 4.5% unde and current interest rate 6.5-7% undi and increasing more. Na house July 2023 lo handover chesta annaru. 1st installment I made a minimal. 2nd installment January 2023 lo katali…
so, my question here is should I continue proceeding with buying that house? Or can I back out look at the increased Interest rate? If I back out what will be the consensus I will have to face in feature? 
please help me with your thoughts and opinions.

 

thanks !! 

In terms of consequences apart from fist emt losd and little emotional pain nothing tooo loose no impact on your

If your job is good and good reserve money no need to backout at the end of the your decision your comfort level anna u know better

[Thokkalee]

Lennar homes is giving loans on some of their homes @5%… 

you have to ask yourself.. is the mortgage still affordable to you? Can you get a similar home for lesser price?? Are the prices going down rapidly in your area?? 

[Pandubabu]

5 hours ago, SardarGabbarSingh said:

Bhayya, nenu last August lo new house sign chesa appudu intrest rate 4.5% unde and current interest rate 6.5-7% undi and increasing more. Na house July 2023 lo handover chesta annaru. 1st installment I made a minimal. 2nd installment January 2023 lo katali…
so, my question here is should I continue proceeding with buying that house? Or can I back out look at the increased Interest rate? If I back out what will be the consensus I will have to face in feature? 
please help me with your thoughts and opinions.

 

thanks !! 

Wtf. Taking 2 years to build . Baga custom homekatsthnva enti ?

Back out aithe mostly kattina dabbulu podhi..

GC undi , if you can handle mortgage after saving enough for retirement and other stuff  ante .., go for it bhayya.

H1b(especially single visa ) Aina, mortgage payments tight Aina,  think about backing out

[Usr220]

7 hours ago, csrcsr said:

In terms of consequences apart from fist emt losd and little emotional pain nothing tooo loose no impact on your

If your job is good and good reserve money no need to backout at the end of the your decision your comfort level anna u know better

Sign chesina rate undada bro In his case 4.5%? New here trying to understand how this works.

[Ravi860]

30 minutes ago, Usr220 said:

Sign chesina rate undada bro In his case 4.5%? New here trying to understand how this works.

Nope rate applied at closing time. No one knows unless your builder allows you to lock it. Many don’t 

[csrcsr]

2 hours ago, Usr220 said:

Sign chesina rate undada bro In his case 4.5%? New here trying to understand how this works.

Very rare cases lo 90 day lock u tadi bro adi koncham upfront katti etc mari 7 mundu not sure yiu can lock that much upfront

[puski]

If you home price is too far away from median home sale price in your area, I would recommend to wait on buying. But, if you have good financial situation along with job security and house price is not too far away from median home price they you can buy it anytime.

Make sure you buy it with ARM loan. Don't take Fixed rate mortgage. Because you will have to refinance after 7-8 years  when rates go down.  

[Pandubabu]

2 hours ago, puski said:

If you home price is too far away from median home sale price in your area, I would recommend to wait on buying. But, if you have good financial situation along with job security and house price is not too far away from median home price they you can buy it anytime.

Make sure you buy it with ARM loan. Don't take Fixed rate mortgage. Because you will have to refinance after 7-8 years  when rates go down.  

Why not fixed rate bro ?

[Warangalbidda]

12 hours ago, SardarGabbarSingh said:

Bhayya, nenu last August lo new house sign chesa appudu intrest rate 4.5% unde and current interest rate 6.5-7% undi and increasing more. Na house July 2023 lo handover chesta annaru. 1st installment I made a minimal. 2nd installment January 2023 lo katali…
so, my question here is should I continue proceeding with buying that house? Or can I back out look at the increased Interest rate? If I back out what will be the consensus I will have to face in feature? 
please help me with your thoughts and opinions.

 

thanks !! 

This is my experience I am on H1b

I signed house contract on Sept 2020 and due to materials delays and covid House finally constructed in Feb 2022 and done house warming in 2022April.During contract gave $3000 check and during that time interest was some where around 2.5-2.7% but you can only lock rate before 2months of closing.So during my closing interest rates where hike to 3.25% I closed the house for 3.25% .If you back out they some builder will cut some portion money and they give you some builders don’t give based on your contract terms.

take your decision based on your contract terms.

[Thokkalee]

4 hours ago, puski said:

If you home price is too far away from median home sale price in your area, I would recommend to wait on buying. But, if you have good financial situation along with job security and house price is not too far away from median home price they you can buy it anytime.

Make sure you buy it with ARM loan. Don't take Fixed rate mortgage. Because you will have to refinance after 7-8 years  when rates go down.  

ARM loans are very expensive… when you refinance a loan, you have to start paying the interest again on the outstanding balance, which will usually be like 20 to 40K less than the total loan amount after 5 years.. you pay a lot of interest in the first 5-10 years… best thing to do is to take a 30 yr loan and prepay the loan as much as possible… or even a 15 year loan if it is affordable.. 

Use the amortization calendar and check the total cost (principal and interest in 5/10 years) of the loan in all the cases (30 yr fixed, ARM and 15 yr fixed).. 

[Thokkalee]

1 hour ago, Warangalbidda said:

This is my experience I am on H1b

I signed house contract on Sept 2020 and due to materials delays and covid House finally constructed in Feb 2022 and done house warming in 2022April.During contract gave $3000 check and during that time interest was some where around 2.5-2.7% but you can only lock rate before 2months of closing.So during my closing interest rates where hike to 3.25% I closed the house for 3.25% .If you back out they some builder will cut some portion money and they give you some builders don’t give based on your contract terms.

take your decision based on your contract terms.

3.25 is a good rate.. 👍

[DayanaraHudson]

Interest rates have gone up, and it can mess with your plans. You might want to explore some alternatives, like checking out the Chinese Container House Manufacturer for ideas. They could have some unique and cost-effective options. As for backing out, it's a big decision. You'll want to talk to your builder and maybe a financial advisor to weigh the pros and cons. The consequences can vary, so it's crucial to understand your contract terms. Ultimately, go with what makes the most sense for your financial situation and future plans.