New home 50k loss anta nijamena ?expats lo okka threadu

[Thokkalee]

On 9/23/2023 at 7:58 PM, manchulomajjiga said:

Home buying suggestion : Is ok to have a high interest loss of 50,000$ in next two years ? will this come back in equity at a later point of time ? 

Was looking to purchase a new home in TX area and the price range is around 550000K.

From the recent Fed meeting it looks like the rates are not going to come down for the next couple of years.

Trying to do math and I see that if we get a chance to refinance only after 2 years from now, that means we would be paying around 50K additional interest in the next 2 years . So that means after 5 years or so (as many here say home is not a 1 year plan rather minimum 5 year ) , the house must also appreciate that much amount which is paid in interest . So at the end of the day is this not a loss and difficult to get out if atleast break even ? (not adding all the maintenance , insurance and property taxes ) which will never come back ?

A 550K home with a down payment of 20% at 7.5% interest will be paying out 69845$ as interest by end of 2025 whereas at a 2.5% interest it will be only 23,400$ approx so is this not a loss ?

2.5% interest rate will not come back in a decade… so don’t hope for that… don’t compare your loan terms with someone who bought before the pandemic with the lowest home prices and lowest interest rates.. you won’t be able to sleep or buy a house or enjoy a house.. those rates will never come back.. 

You are also saving on the rent you pay now.. living in a bigger house.. you are also building equity.. I would recommend buying a smaller home or a town home so that your numbers work and you don’t pay more than 30-35% of your take home towards your home expenses (mortgage, taxes, insurance etc).. 

[rmJU72]

On 9/23/2023 at 5:58 PM, manchulomajjiga said:

Home buying suggestion : Is ok to have a high interest loss of 50,000$ in next two years ? will this come back in equity at a later point of time ? 

Was looking to purchase a new home in TX area and the price range is around 550000K.

From the recent Fed meeting it looks like the rates are not going to come down for the next couple of years.

Trying to do math and I see that if we get a chance to refinance only after 2 years from now, that means we would be paying around 50K additional interest in the next 2 years . So that means after 5 years or so (as many here say home is not a 1 year plan rather minimum 5 year ) , the house must also appreciate that much amount which is paid in interest . So at the end of the day is this not a loss and difficult to get out if atleast break even ? (not adding all the maintenance , insurance and property taxes ) which will never come back ?

A 550K home with a down payment of 20% at 7.5% interest will be paying out 69845$ as interest by end of 2025 whereas at a 2.5% interest it will be only 23,400$ approx so is this not a loss ?

Ur micro analyzing…if u can afford and it’s your first home, just go for it..550k isn’t much nowadays.

also interest rates will never come to 2.5%. It was once in many decades opportunity.

most likely once economy settles it will be 5-6% Apr which you can refinance for.

[sarvayogi]

On 9/23/2023 at 7:58 PM, manchulomajjiga said:

Home buying suggestion : Is ok to have a high interest loss of 50,000$ in next two years ? will this come back in equity at a later point of time ? 

Was looking to purchase a new home in TX area and the price range is around 550000K.

From the recent Fed meeting it looks like the rates are not going to come down for the next couple of years.

Trying to do math and I see that if we get a chance to refinance only after 2 years from now, that means we would be paying around 50K additional interest in the next 2 years . So that means after 5 years or so (as many here say home is not a 1 year plan rather minimum 5 year ) , the house must also appreciate that much amount which is paid in interest . So at the end of the day is this not a loss and difficult to get out if atleast break even ? (not adding all the maintenance , insurance and property taxes ) which will never come back ?

A 550K home with a down payment of 20% at 7.5% interest will be paying out 69845$ as interest by end of 2025 whereas at a 2.5% interest it will be only 23,400$ approx so is this not a loss ?

usually rich dad poor dad lanti books chadivaka ilanti thoughts vastai

asset means you get money

liability means you loose money

nuvvu kone pumpka 550k illu ki endi inni chillara lekkalu...koni pada mingu...

dont do calculations like some multi millionaire..tippi kodite 50k interest

[Ravi860]

1 minute ago, sarvayogi said:

usually rich dad poor dad lanti books chadivaka ilanti thoughts vastai

asset means you get money

liability means you loose money

nuvvu kone pumpka 550k illu ki endi inni chillara lekkalu...koni pada mingu...

dont do calculations like some multi millionaire..tippi kodite 50k interest

US avg home price already reached 400s so 550k jujibi ea 😂 mana desi standards ki min 800k lekapothe kastam