Interest rates up even more

[IamBhagatSingh]

1 hour ago, Ravi860 said:

Almost every builder is luring buyers with ARM now.. 3.99 first year, 4.99 for 2nd and 5.99 3rd 

Mari best eh kada Instead of taking fixed. Any downside with this? 

[rmJU72]

1 hour ago, Ravi860 said:

Almost every builder is luring buyers with ARM now.. 3.99 first year, 4.99 for 2nd and 5.99 3rd 

This is interesting…what’s the terminal rate usually for these loans? can you share any builder webpage showing this type of a deal

[pakeer_saab]

if you want to get a list of foreclosures in 2024, those will be the ones who bought homes in 2022

 

2023-24 will be repeat of 2007-08

[Complex]

10 minutes ago, rmJU72 said:

This is interesting…what’s the terminal rate usually for these loans? can you share any builder webpage showing this type of a deal

This is called interest rate buy down

Nothing magic here. Its temporary thing for few months..

Its a strategy used by builders to let you buy home. Basically  if current market interest  rate is  6.5%  ,    how  2-1 buydown  works is   first year rate will be 4.5 %, 2nd year 5.5 % and from 3rd year it is regular 6.5% ..  

 

So assumption is within those 2 yeas market rates will go down and you can refinance .  It also assumes that if rates don't go down you can afford payments at 6.5%  from 3rd year.

 

2-1 buy down does cost money based on home price,  like 10-15k, which builder will pay if you use their preferred lender (in house finance ) . Its like a promotion to let you buy home.

 

example, here market rate is 5%:

 

[pakeer_saab]

We are in 1981 type situation, which means interest rates will not go down for at least 3-4 yrs. H1's should be totally out of this market, if someone thinks they are better, they can surely test their stress levels

[rmJU72]

2 hours ago, Complex said:

This is called interest rate buy down

Nothing magic here. Its temporary thing for few months..

Its a strategy used by builders to let you buy home. Basically  if current market interest  rate is  6.5%  ,    how  2-1 buydown  works is   first year rate will be 4.5 %, 2nd year 5.5 % and from 3rd year it is regular 6.5% ..  

 

So assumption is within those 2 yeas market rates will go down and you can refinance .  It also assumes that if rates don't go down you can afford payments at 6.5%  from 3rd year.

 

2-1 buy down does cost money based on home price,  like 10-15k, which builder will pay if you use their preferred lender (in house finance ) . Its like a promotion to let you buy home.

 

example, here market rate is 5%:

 

thx for sharing. yeah this appears appealing, but we have to consider the risk of rates staying like this or going higher.

[Netflixmovieguz]

2 hours ago, pakeer_saab said:

if you want to get a list of foreclosures in 2024, those will be the ones who bought homes in 2022

 

2023-24 will be repeat of 2007-08

 

1 hour ago, pakeer_saab said:

We are in 1981 type situation, which means interest rates will not go down for at least 3-4 yrs. H1's should be totally out of this market, if someone thinks they are better, they can surely test their stress levels

Thaggede leee anntoonnaa H1’s

[DesiPokiri]

House eppudu konali? 

[rmJU72]

3 minutes ago, DesiPokiri said:

House eppudu konali? 

renting might be better at this time. for investments, put in stock market index funds, max 401k

if u really want to buy, buy in low cost of living areas and don’t overstretch

[DesiPokiri]

Just now, rmJU72 said:

rebring might be better at this time. for investments, put in stock market index funds, max 401k

401k lo em options lo invest cheyyali bro?

[Mr Mirchi]

5 minutes ago, DesiPokiri said:

House eppudu konali? 

eppudu konali kaadhu...eppatidhaka konakudadhu ani adugu

[DesiPokiri]

Just now, Mr Mirchi said:

eppudu konali kaadhu...eppatidhaka konakudadhu ani adugu

Ade tell me bro

[Mr Mirchi]

1 minute ago, DesiPokiri said:

Ade tell me bro

dont even think for sometime...just watch the magic

[DesiPokiri]

Just now, Mr Mirchi said:

dont even think for sometime...just watch the magic

Last year kuda ide chepparu, 8 months nundi holding paisal anna

[Manishican]

Higher interest rates might need to stay for a long time