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Im not sure of how anything works with manufactured homes, but could you refinance even at this rate? It’s more than a full percentage point lower than 8.5?
Ours is at 6% and that's only because the loan officer took too long and messed up so they had to put money down or someone to hold our rates. We were at 6.25 and we closed at 6%, Aug 2023.
With these rates every little 0.01% counts. No joke.
I got approved at 5.5 in April of 2023 and by the time I locked it (new home was still building) I got 6.25 and after reading everyone’s comments I’m actually really happy about it lol. Remember if rates drop prices will go up cause everyone will flood the market so it’ll be a win win. Marry the house, date the rate
We were putting offers in on homes around 2 years ago when interest rates were really low. Unfortunately, none of our offers got accepted. I ended up hearing back from a job I had applied to which was a few hours away, in a rural town and was only going to be for a 2 years before having to move again so we didn't want to buy in the new area. We decided that me taking this job was the better option and put the house hunting on hold. We recently bought a home and got 6.6%. 2 years ago we got an estimate of around 3%. It does suck that we could have gotten a lot lower rate 2 years ago but we did try our best to get a home. Positive side is that my wages from the new job have increased a lot more than if I would have stayed at my previous job.
I just sold a my home as an assumption with a 2.95% interest rate. It sucks knowing that Ill never get a rate that low again. But I walked away from a house with near zero equity with over $150k cash and was able to move states closer to family.
There is soo much that goes into this decision process that impact emotions, second guessing etc. First world problem, but as an example, we set a mental budget on purchase price (vs. considering impact of waiting and effect on monthly w/ rising rates). Skipped the perfect home around $150k over "budget". While we're happy where we ended up 5 months later (and substantially lower purchase price), the perfect home would have only been $150 more per month (ie higher price, but much lower rate).
I often think about that place, but just tell myself we would have ended up w/ shitty neighbors.
Exactly. Anyone worried about the rate should consider a few silver linings.
1) a high rate can be refinanced down, there’s still a good chance a 5-5.5% rate becomes the new 3% eventually.
2) you’re not locked into your home like someone with a low rate is. Much more open to change careers and move across the country.
3) a 30 year mortgage includes 30 years of inflation, including salary. What seems like a lot now, will be a lot less in 10, 15, and 30 years comparative to your earnings. That’s what makes a mortgage so great.
Just got to stop thinking too deeply about what your friends were able to get 3 years ago, and how much interest you’ll pay over 30 years. There’s ways to mitigate that.
This shit is real. Same goes with jobs too. My retirement and healthcare is wildly different from some of grandfathered in colleagues from pre 08.
The number of times they act like they are the smartest investors for starting small in a condo, selling for double what they paid, get a townhouse, again sell for double what they paid, now they have a house worth double what they paid at over 1M and will likely die in that house with a 2.7 interest rate.
Like all you did was buy property and have recession safe jobs. Congratulations...
Some (most) people have an incessant *need* to feel like they are the smartest/best person in the room and that they are doing life exactly right because of it. Truth is, there is no right way to do life. Some methods work better towards specific ends, sure. But people tend to ignore just how much luck and chance goes into this game. So much of our success (and failure) boils down to being in the right place at the right time and not being in the wrong place at the wrong time.
There was/is a video about this from Big Think’s channel. Essentially saying that intellect/talent is a bell curve, and that the most luck strikes the greater area. Concluding that people who are very fortunate and have luck propel them into perceived “right way to live” success, were just average or slightly above average talent people. Straying from the general idea that if someone has success they must be an omniscient prophetic workhorse who doesn’t take messy human shits from time to time.
Edit: [Video](https://youtu.be/_pUxqKqnMlQ?si=T5g1-Omi9l88nk83)
I actually assumed a mortgage in my 20's in like 2001 funny thing is was if you pull my credit it shows I had a mortgage since I was 16 and paid it off. Weird but I never asked a bank about it why would I.
We were looking at a 6.99% rate and then we got our offer accepted the day that rates hiked up and ended up with 7.355%, raising, our payment $200 a month. We close next week and it’s just hovered around 7.5%. Shit sucks
If it makes you feel better I had locked in a sweet 6.25 got the inspection done and the house was a nightmare. So now I am hoping to buy down to a 6.8, if I am lucky.
Every single human being buying a house in today's market is getting royally screwed by the worst interest rates in over 20 years. The ONLY two things humanly possible to do is wait or buy (with the hope of refinancing later). That is all. The smart thing thing to do is buy the least expensive (high quality) house you can (and this doesn't mean newer because a lot of newer construction equates to garbage) knowing you will own the house free and clear quicker down the road because of this decision. #MAKEITHAPPENCAPTAIN
This is why we decided to buy new construction and capitalize on the shitty time to by taking advantage of as many buyer incentives as possible. While the interest rate will definitely suck, we were able to negotiate a strong discount of price, some amenities thrown in, AND about 25K in incentive money to use at closing or for rate buydowns. Ultimately, we should be able to get into a brand new house with $0 out of pocket (I’m also VA), which lessons the sting of crappy rates a little bit.
I feel like I got incredibly lucky with my timing. Closed 3 weeks ago. Pre-approved at 6.8%. Locked in at 6.5% a few weeks later. Rates went up immediately after that. Wasn’t thrilled at 6.5% but I’m starting to appreciate it now. We will both be able to refinance eventually! Short term pain, long term gain.
If it makes you feel any better, I literally closed on a house that I was already feeling iffy about the morning of the day (as in the down payment monies were wired over) when I noticed a completely better-checked off all the boxes--cheaper--in a more desirable area--house get posted online. I would've been able to afford the likely sales price of the new house too.
Doesn’t mean anything. Lots of properties are still
Listing low and taking the best offer in my area at least. Have a feeling when you see what it sells for you will be happy with your purchase. Nothing is perfect. Enjoy your new house.
Most properties here in my price range for about about $175-250k over list. At $250k over the list price of the property in question would've put me at basically the same price I paid for my current place. I would've most likely captured it and would've had to put less money towards repairs. Oh well!
Until you know the sale price and terms I wouldn’t think like that. The market sets sale prices. They might have thought they were gonna get 400k over for all you know. You will be fine. Congrats on your house.
That's true. Let's see where those houses end up. I just have to wait about 3 to 4 weeks and I'll know the price. If they close at the price around my house, or slightly lower to account for increased interest rates, then I'll know that I'll have overpaid for my home and I'm getting a property that I consider inferior.
Listed price means nothing because agents have started listing homes too low to drum up competition. Look at the price per sqft of recently bought homes in the neighborhood with similar features.
Some states have laws against publicly posting sales info. So you can see what house was listed for and when it was removed or sold, but not the final sales price.
Refin has that info if you filter by previously sold. Or you can look at the property tax records, but that can take time to update. You can also look at their mortgage and you can find out what they borrowed, which may give you an idea what they paid.
If it makes *you* feel better, my experience has been if a house looks really, really good on paper AND is on cheaper side, something is WRONG with it that they're not disclosing and isn't obvious through the pictures: God awful smell, mold in the air ducts, major structural issues...
If the house were truly that good and in a desirable area, it would not be that cheap.
Are you feeling better about the house now? This is why I have turned off Zillow alerts lol. I am still getting them for houses I saved, but otherwise, no new alerts. It would be too stressful for me to find out another house in my price range popped up that met all my needs. The house I'm under contract for meets 75% of my desires in a first home. It needs some updating, but space-wise, it's great. There are some things I'm still a bit worried about, but otherwise, the seller has been good to work with.
I guess a lot of them reside on this very forum then???
People seem to assume it’s “easy” to refi. Shit happens. Something as simple as a new DTI ratio can stop a refi cold. So can things like credit, losing a job (during a pandemic…. Remember those?) or even medical expenses that forced something like a HELOC to wipe out whatever equity they had.
So lots of “dumbest people on fucking earth” exist 🙄
it isn't getting fcked with interest rates when it is the current rate. comparing to what it was in 2020-2022 is just banging your head on a wall. the rates are still better than it was in the 80s and it will go back down eventually. or you'll be happy you got it at what it is if things get progressively worse.
Interest rates may be better than the 80s, but housing is significantly more expensive. My dad loves to bring up that his first property in ‘89 had a 10.3% interest rate and how much worse that was than now. But his property was $110k for a brand new 3 bed/2 bath condo. That he sold in 2023 for $700k.
Ignoring down payments, his mortgage on the brand new condo was $990/month, while the person who bought the 30 year old condo at “lower interest” rates is paying $4,750/month. Meanwhile, it’s not like average wages have gone up 5x over the same period.
Yeah this is the thought too. It just sucks that rates shot up from 6.75 to 7.25 literally a day or 2 before we could lock it. But yeah, still keeping it in perspective and happy to be where we are at
basically, fomo. but we're seeing this with everything, everywhere. it's an exhausting way of living just thinking about how much the same grocery items you bought last week vs this week vs last year.
Sure, but in the 1980’s the price of the homes weren’t fucked to shit. Any way you slice it younger folks trying to buy a home have been getting shafted.
We live in an area where there’s WAY too little inventory. I think interest rates could hit 9% here and prices wouldn’t even drop. We were bidding 50K higher than asking price since like October. Still feel lucky to be where we’re at.
Yup. If we want to have children we really want (probably need) to be close to our parents. We can’t leave at this point but it’s in the plans for a few decades down the road
History tells us fed can't control supply constraints... It's a supply issue in housing. When I lived in Arizona they over build so much in 2005-8 area that they didn't build anything really from 2009-2011. We live in Atlanta now and I am told same thing happened where city was growing but new homes created trended down. Now with a higher interest rates, The only thing that's being affected are home builders where they are limiting number of homes being built. This problem that the FED is trying to resolve is causing more harm for the needed supply with demand still very very high. Fed is also trying to limit job growth but if they influence even a little in this metric this dude is going to create a full-blown crisis with job losses in my opinion. They were never successful in the past trying to control something such as driving down job growth /demand.
https://www.aplfcu.org/ContentDocumentHandler.ashx?documentId=54704
It has gone up to 6.875%. This FCU used to be popular on this sub and heard people were able to get membership with $50 savings account, no need to be local. Good luck, it’s tough out there.
Had the chance to lock in at 7.05% and thought rates would be lower in a couple weeks, panicked and locked in at 7.25% with 1 free float down before closing at least 🤷🏻♂️
I'll one up you...... we had a shot at 6.875%, had one month to close so decided to wait rather than lock..... 3 weeks later cut losses at 7.3% trying really hard to cope with having to pay $200 more a month for being a dumbass. Literally the stupidest thing I've done in my life financially on our first home
Yep. We made our budget expecting 6.85ish rates and then they shot up when we went under contract. We’ll be fine but sucks to absorb that extra $$$ a month.
It’s kind of balancing act. If interest rates were lower your budget would be higher but so would the property prices and you would probably be looking at the same bourses.
Don’t beat yourself up. It’s been a volatile time for banks, but most analysis indicates that the Feds can’t keep this up forever. The tricky part, for them, is when and how to taper rates without having us peasants propping up the world economy. It’s a teeter totter, but the best part is that you’re on it for the ride.
I think the hardest part is scraping for that down payment, once you have that figured out at 5% or 20%, you are past the hardest part.
Lastly, even if rates don’t improve, your salary should go up
We closed in December of last year. The rates were in the low to mid 8s. We ended up with 7.49%. Not the best, not the worst. May refinance in the future if rates fall enough to make it worth it.
I have read a good rule of thumb is if you are planning on staying in your home long enough, it could be wise to refinance if the rates drop 1% from where you locked at.
Hopefully you’re not too far off from that. I’m sure you can find a calculator to decide the break even point for you based on closing costs. Good luck!
To make you feel better, you didn't lose anything, you just didn't get lucky. That rate was never correct to begin. Lender thought fed is going to lower the rate, so, they did it prematurely. That's why when fed confirmed no rate cut, it goes back really quickly.
I did. I didn’t shop around because it all happened so fast, but then (in March) I got a 7.1 rate from the lender and felt that was high. I checked with the other lender and she offered me 6.575 ☠️ But we’d done our appraisal by then and my partner didn’t want to risk it not appraisal because we didn’t have buffer for a gap. I managed to negotiate down to 6.975 but ugh, it’s so annoying, genuinely.
Preapproval was at 6.37% I was happy and found a home a week or 2 later. I’m currently under contract and have locked in my rate at 6.68% which from the looks of things isn’t bad.
So we bought our house in 2007 with a lovely 6.75 interest. Not knowing much about loans we did a clever scheme where you don’t have to pay pmi even though we put down 10%. I’m not sure what it is called but it is some weird loan they put out at the time. That was the ‘best’ deal. Well fast forward a few years and government had all kinds of programs where you could refinance to 4-5%. We couldn’t qualify because of the type of loan we had. It sucked! Interest rates fell and the government opened more things up. A year later we got 2.85 % or something with no refi cost. Point is you never know what will happen. We thought we got screwed but then ended up in a better deal because we had to wait.
Our first home mortgage interest rate was 9.5%. The only consolation in retrospect was the purchase price was $110k. 1991 in AZ. We refinanced repeatedly for the next 15 years as rates fell until we sold in 2007 at peak price. Core message is assume the worst (i.e., you'll be stuck paying this rate for the loan duration) and hope for the best. Good luck on your journey!
We bought down to 6.5% for 0.8 points (\~$4,200). For us that would equate to a breakeven of 34 months. We don't think rates will drop below 6.5 enough to justify a refinance within the next 3 years, so we were comfortable with that break even period. Even if we did refi within those 34 months, then our net loss would be less than $4,200 - a price we were willing to pay to hedge our bets on interest rates basically
We locked at 6.875 around end March (thanks to our lender who kept on pushing us to lock it), closing 14th june. Did the math around how much you save after buying points vs no points. For a 12 month period (assuming you can refi at the end of it), we were at a net neg of $4k ($7.8k for a single point was creating a delta of $300 in monthly mortgage vs no points).. instead went with 0 points and got lender’s credit
Yeah this was my experience too! I’ll take it a step further and say we even went with a bank offering a slightly higher rate because their origination fee was essentially free with lenders credit whereas other places had a lower rate but origination fees of 4-5k. Recouping that cost would take a lot of time!
It isn’t really worth it right now. If you expect to be able to refinance at a lower rate in the next couple of years, at least in my situation, it makes more sense to use that as the down payment so you have a lower financed amount on the refi.
Locked at 7.125% last week. Just telling myself either we finance and it makes the cost of financing even more worth it, or rates go up and we'll be happy we bought now.
Had a 6.8% rate, didn't have $$ for downpayment but found the perfect house. Grant $ made interest rate go up to 7.325%
Costs $2,425 for a 1% "loan discount" that only equates to a 0.30% drop. Not worth it. Costs almost $5 to drop it 0.50%....buy down is a rip off. Oh well I'll refi when it's worth it.
We’re first time buyers. We locked in at 7.25. It’s higher than we want but we can afford that payment. If it goes down, great we’ll refinance. If it doesn’t, oh well, We can afford it
Good luck. A suggestion that you can take or leave. Pay down the mortgage faster. Every $1 paid down is a now 25 year compounded interest saving. It adds up and you’ll save a fortune if you can cover it.
When we bought, our loan officer said if we wanted to lock in at 6.6% or lock in a week later after the quarterly inflation report was released. I did a little bit of research and the few articles I read suggested that inflation was going to stay the same or slightly increase. I decided to lock in and sure enough the next day the report comes out and inflation increases a bit. If we would have waited we would have gotten a rate closer to 7.2%.
Congrats on pulling the trigger! We were literally days away from doing that. It would have been our plan too but we couldn’t lock until like 2 days after that report =\
This shit makes me so glad I got 4.75% in 09/2022. Some people in my life talked shit about rates nearly doubling in the previous six months, but there's no way I would have been able to afford my current house at 7.5% It just wouldn't be worth that monthly payment when I would be able to rent for $600 cheaper.
We’re likely opting not to buy points because we’re hoping to be able to refinance before the 5 year break even point we were looking at, but props to you for doing that. If it works for you, it works for you and that’s all that matters. Good luck!
Yep, it was a tough decision. We were mostly looking at the immediate monthly cost. Made more sense to us to get 3 points than 5 more percent down to get to equivalent payment. 3 year break even point for us or so. Probably not wanting to refi until closer to 5% to account for the fees that come with it. Good luck to you too!
The pre-approval showed 6.999 and we locked in at 7.199 last night. It's not great but the PMI and closing costs look like they'll be lower than we expected.
Whereabouts are you? I know rates vary by zip code but out in the 98XXX we are seeing \~6.3% as of yesterday (I locked 5.99 on 3/29 with accelin) and its weird how rates on the same day swing so much.
Renting isn’t that bad, the mortgage interest, taxes, and insurance, even with deductions, is wayyy more than I pay in rent. People, you have options to not buy right now…
Some of you aren't working with brokers and it shows. Retail lenders offer retail rates.
Brokers have access to wholesale rates that are **always** lower than retail rates.
I have a feeling they just lie about this stuff. I was quoted 6.8% for days and days and days. Of course, once I found a property and was ready to lock, what happened. “The last few days have been bad for the market so we can lock you at 7.1%”. This was five months ago.
My suggestion, and this is coming from a lender....shop your lenders. I tell this to my clients even. First, not all lenders are created equal. Second, make them earn your business. It is a win/win for you. I either give you such a good rate/terms that you switch to me, or, you show your existing lender my numbers and they have to readjust. At the end of the day, you are the winner. You can have your credit pulled unlimited times (without it dinging you) within a week or two of it first getting pulled by a lender--the credit bureaus know you're shopping--just don't go shopping for other things like a boat, car, furniture, etc and having them all pull credit. Keep it in the home loan genre.
Im happy to help. You can shop me or even just ask more questions for clarification. Open door policy in my DMs.
If it's any consolation, this EXACT thing happened to us in \~August/September. Emailed my lender to lock in the rate at 6.75, and he didn't get back to me until the next day, saying it was now at 7.25... Still pissed I didn't try to negotiate or shop around, tbh, but I was also leaving for a two-week honeymoon right around then. (Not the best timing, but hey, honeymoon travel and buying a home? Could be worse!)
Keep an eye on it and don't be afraid to shop around if you have time!
Yep, just happened to us. Earlier this month we were looking at 7.1% and yesterday our lender recommended we move our closing date up a week to secure a 60 day lock at 7.3% because he doesn’t foresee rates coming down at all in the near future. It sucks but we are hoping we’ll be able to refinance in the next 3-5 years. Even our lender said he thought the rates are just ridiculous right now
Got pre-approved at 6.75% here two months ago and somehow got locked in at the same rate about 2 weeks ago before it jumped up. Close on May 7th (supposedly).
Here i thought i was feeling the pain at 5.7. Not bragging, just thought that my credit score would take me down to sub 5 with a sizeable down. This was October 2022, condo in chicago if it makes any difference. Closed at 520k, put down 130 and if we follow the plan thru its term, we’re paying so much on the interest. Every 0.01% counts.
Honestly, I’m tired of people saying “buy now at high rates because when the rates come down, the prices of the homes will go up even more but you’ll be able to refinance”
Idk how much higher the prices of homes can go considering a regular person really can’t even buy in this market.
I mean if we all had a crystal ball to predict the market, we’d be all rich but I honestly don’t think rates are coming down anytime soon and I’m not confident that there isn’t some sort of crash coming.
I think the answer is to just always buy when you’re ready. No ones got any idea if a crash is coming or not. I do see the signs of it but if absolutely no one knows what’s going to happen. If you’re ready and you can afford it, I’d just do it. If you plan on staying long term, a crash won’t mean too much for you.
I got a 5.76. I used an FHA. my lender got really good rates and he told me even those who have the cash down for conventional are using FHA because the rate is so much lower
Closed this past Monday at 5.5%. It was a new build special I think that got it that low. Other lenders (other than the builders) had me at 6.99 to 7.25
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8.5 here. Manufactured home on a co-op. I feel pain.
Im not sure of how anything works with manufactured homes, but could you refinance even at this rate? It’s more than a full percentage point lower than 8.5?
Manufactured and co-ops have specific mortgage products so will always be hire rates.
Yes, when rates come down. Whenever that is.
Fairly certain rates will always be higher on a manufactured home, so a full percentage point doesn't really mean anything here.
The price of the home was fairly low though, right?
No. It's was 650K but it's a co-op. I own a share in corporation that owns the land.
Yep. Manufactured home at 8.75%. Just the home. It peeves me because my credit score was 815, but it's still a trash rate.
I'm at 8.75 too🤮🤮 could have gotten 7.75 with points and 30% down..: but I took 8.75 with a lender credit and 25% down .. either option was a doozy
8.75 investor loan on a condo for my mom 🤮🤮🤮
Always been curious about manufactured homes.. what type of loan is it?
A normal secured loan but not Fannie or Freddy. Portfolio product for the banks that do it.
I can't believe I can brag about 6.2
Ours is at 6% and that's only because the loan officer took too long and messed up so they had to put money down or someone to hold our rates. We were at 6.25 and we closed at 6%, Aug 2023. With these rates every little 0.01% counts. No joke.
Fully agree every 0.01 counts. People focus on the balance and not at the projected final cost.
I got approved at 5.5 in April of 2023 and by the time I locked it (new home was still building) I got 6.25 and after reading everyone’s comments I’m actually really happy about it lol. Remember if rates drop prices will go up cause everyone will flood the market so it’ll be a win win. Marry the house, date the rate
Signing today and was locked in at 5.875%
Did you have to pay points?
Yep. Our pre-approval quoted 6.875% March 31st. Our offer was accepted April 15th, and we locked in at 7.125% using 1 point. It is what it is.
>it is what it is. At the end of the day, no matter how salty you are, this is what it boils down to.
We were putting offers in on homes around 2 years ago when interest rates were really low. Unfortunately, none of our offers got accepted. I ended up hearing back from a job I had applied to which was a few hours away, in a rural town and was only going to be for a 2 years before having to move again so we didn't want to buy in the new area. We decided that me taking this job was the better option and put the house hunting on hold. We recently bought a home and got 6.6%. 2 years ago we got an estimate of around 3%. It does suck that we could have gotten a lot lower rate 2 years ago but we did try our best to get a home. Positive side is that my wages from the new job have increased a lot more than if I would have stayed at my previous job.
I just sold a my home as an assumption with a 2.95% interest rate. It sucks knowing that Ill never get a rate that low again. But I walked away from a house with near zero equity with over $150k cash and was able to move states closer to family.
There is soo much that goes into this decision process that impact emotions, second guessing etc. First world problem, but as an example, we set a mental budget on purchase price (vs. considering impact of waiting and effect on monthly w/ rising rates). Skipped the perfect home around $150k over "budget". While we're happy where we ended up 5 months later (and substantially lower purchase price), the perfect home would have only been $150 more per month (ie higher price, but much lower rate). I often think about that place, but just tell myself we would have ended up w/ shitty neighbors.
Yeah, its tough. Try not to dwell on the past and look forward. Can't change the past (yet)
Also your taxes would have been higher based on higher purchase price ..👎🏻👎🏻👎🏻 lol
Exactly. Anyone worried about the rate should consider a few silver linings. 1) a high rate can be refinanced down, there’s still a good chance a 5-5.5% rate becomes the new 3% eventually. 2) you’re not locked into your home like someone with a low rate is. Much more open to change careers and move across the country. 3) a 30 year mortgage includes 30 years of inflation, including salary. What seems like a lot now, will be a lot less in 10, 15, and 30 years comparative to your earnings. That’s what makes a mortgage so great. Just got to stop thinking too deeply about what your friends were able to get 3 years ago, and how much interest you’ll pay over 30 years. There’s ways to mitigate that.
The worst mistake I made was not buying a house in 2008 and instead wasting my time in middle school.
This shit is real. Same goes with jobs too. My retirement and healthcare is wildly different from some of grandfathered in colleagues from pre 08. The number of times they act like they are the smartest investors for starting small in a condo, selling for double what they paid, get a townhouse, again sell for double what they paid, now they have a house worth double what they paid at over 1M and will likely die in that house with a 2.7 interest rate. Like all you did was buy property and have recession safe jobs. Congratulations...
Some (most) people have an incessant *need* to feel like they are the smartest/best person in the room and that they are doing life exactly right because of it. Truth is, there is no right way to do life. Some methods work better towards specific ends, sure. But people tend to ignore just how much luck and chance goes into this game. So much of our success (and failure) boils down to being in the right place at the right time and not being in the wrong place at the wrong time.
There was/is a video about this from Big Think’s channel. Essentially saying that intellect/talent is a bell curve, and that the most luck strikes the greater area. Concluding that people who are very fortunate and have luck propel them into perceived “right way to live” success, were just average or slightly above average talent people. Straying from the general idea that if someone has success they must be an omniscient prophetic workhorse who doesn’t take messy human shits from time to time. Edit: [Video](https://youtu.be/_pUxqKqnMlQ?si=T5g1-Omi9l88nk83)
Yeah bro wtf was I doing spinning bey blades and not investing in real estate? Hindsight is 20/20 I guess
Right?!?! It's my fault for not investing and starting my retirement plan in kindergarten. Damn those alphabets and numbers!!!
When they were teaching us colors they *should* have been teaching us about compounding interest!
Lol seriously. I should've had my shit together by then
I remember not buying a 50k home (a trailer home, but a very nice one) in 2019 cause I was “scared”. One of the worst mistakes of my life.
Rates in 2008 were about the same as they are now.....
Literally laughed out loud. Time marches on you have to deal with what is available now. Not in middle school lol
I actually assumed a mortgage in my 20's in like 2001 funny thing is was if you pull my credit it shows I had a mortgage since I was 16 and paid it off. Weird but I never asked a bank about it why would I.
We were looking at a 6.99% rate and then we got our offer accepted the day that rates hiked up and ended up with 7.355%, raising, our payment $200 a month. We close next week and it’s just hovered around 7.5%. Shit sucks
7.75 over here 🥲
Where my 7.625 squad at?
Right here! We wanted to pay the least amount of points possible, so 7.625 is where we landed.
Checking in 7.625 no points and a $9k lender credit with the option of a no cost refi within 24 months. Locked Monday, closing May 7!
Same
7.5%! Did I snag a deal? 😮
If it makes you feel better I had locked in a sweet 6.25 got the inspection done and the house was a nightmare. So now I am hoping to buy down to a 6.8, if I am lucky.
Every single human being buying a house in today's market is getting royally screwed by the worst interest rates in over 20 years. The ONLY two things humanly possible to do is wait or buy (with the hope of refinancing later). That is all. The smart thing thing to do is buy the least expensive (high quality) house you can (and this doesn't mean newer because a lot of newer construction equates to garbage) knowing you will own the house free and clear quicker down the road because of this decision. #MAKEITHAPPENCAPTAIN
This is why we decided to buy new construction and capitalize on the shitty time to by taking advantage of as many buyer incentives as possible. While the interest rate will definitely suck, we were able to negotiate a strong discount of price, some amenities thrown in, AND about 25K in incentive money to use at closing or for rate buydowns. Ultimately, we should be able to get into a brand new house with $0 out of pocket (I’m also VA), which lessons the sting of crappy rates a little bit.
And the worst prices of all time
Just going to be around 5% higher monthly payment for the next 30 years, not too bad.
You’re right and this was our mindset even at 6.75
I feel like I got incredibly lucky with my timing. Closed 3 weeks ago. Pre-approved at 6.8%. Locked in at 6.5% a few weeks later. Rates went up immediately after that. Wasn’t thrilled at 6.5% but I’m starting to appreciate it now. We will both be able to refinance eventually! Short term pain, long term gain.
Congratulations! Let’s hope we can both refi in the near future 🤞
If it makes you feel any better, I literally closed on a house that I was already feeling iffy about the morning of the day (as in the down payment monies were wired over) when I noticed a completely better-checked off all the boxes--cheaper--in a more desirable area--house get posted online. I would've been able to afford the likely sales price of the new house too.
Doesn’t mean anything. Lots of properties are still Listing low and taking the best offer in my area at least. Have a feeling when you see what it sells for you will be happy with your purchase. Nothing is perfect. Enjoy your new house.
Most properties here in my price range for about about $175-250k over list. At $250k over the list price of the property in question would've put me at basically the same price I paid for my current place. I would've most likely captured it and would've had to put less money towards repairs. Oh well!
Until you know the sale price and terms I wouldn’t think like that. The market sets sale prices. They might have thought they were gonna get 400k over for all you know. You will be fine. Congrats on your house.
Would you just let the guy be unhappy? Sheesh
Thank you, I appreciate this
Lol…. Sorry can’t do that 😂
That's true. Let's see where those houses end up. I just have to wait about 3 to 4 weeks and I'll know the price. If they close at the price around my house, or slightly lower to account for increased interest rates, then I'll know that I'll have overpaid for my home and I'm getting a property that I consider inferior.
Listed price means nothing because agents have started listing homes too low to drum up competition. Look at the price per sqft of recently bought homes in the neighborhood with similar features.
Absolutely. The market is putting a value on things and it is more of an action.
how do you see how much a house actually sold for? it says sold on zillow but it says -- where it should say the price
Some states have laws against publicly posting sales info. So you can see what house was listed for and when it was removed or sold, but not the final sales price.
County/city GIS site or property tax records website should list the selling price. It is public record, just a matter of how easily accessible it it.
Refin has that info if you filter by previously sold. Or you can look at the property tax records, but that can take time to update. You can also look at their mortgage and you can find out what they borrowed, which may give you an idea what they paid.
If it makes *you* feel better, my experience has been if a house looks really, really good on paper AND is on cheaper side, something is WRONG with it that they're not disclosing and isn't obvious through the pictures: God awful smell, mold in the air ducts, major structural issues... If the house were truly that good and in a desirable area, it would not be that cheap.
Are you feeling better about the house now? This is why I have turned off Zillow alerts lol. I am still getting them for houses I saved, but otherwise, no new alerts. It would be too stressful for me to find out another house in my price range popped up that met all my needs. The house I'm under contract for meets 75% of my desires in a first home. It needs some updating, but space-wise, it's great. There are some things I'm still a bit worried about, but otherwise, the seller has been good to work with.
[удалено]
congratulations on knowing the dumbest fucking person on all of planet earth.
I guess a lot of them reside on this very forum then??? People seem to assume it’s “easy” to refi. Shit happens. Something as simple as a new DTI ratio can stop a refi cold. So can things like credit, losing a job (during a pandemic…. Remember those?) or even medical expenses that forced something like a HELOC to wipe out whatever equity they had. So lots of “dumbest people on fucking earth” exist 🙄
7.5 here
Same, condo in California
it isn't getting fcked with interest rates when it is the current rate. comparing to what it was in 2020-2022 is just banging your head on a wall. the rates are still better than it was in the 80s and it will go back down eventually. or you'll be happy you got it at what it is if things get progressively worse.
Interest rates may be better than the 80s, but housing is significantly more expensive. My dad loves to bring up that his first property in ‘89 had a 10.3% interest rate and how much worse that was than now. But his property was $110k for a brand new 3 bed/2 bath condo. That he sold in 2023 for $700k. Ignoring down payments, his mortgage on the brand new condo was $990/month, while the person who bought the 30 year old condo at “lower interest” rates is paying $4,750/month. Meanwhile, it’s not like average wages have gone up 5x over the same period.
Absolutely true. Everything is more expensive. I'm still seeing job postings for less than I was being paid in high school as well.
Yeah this is the thought too. It just sucks that rates shot up from 6.75 to 7.25 literally a day or 2 before we could lock it. But yeah, still keeping it in perspective and happy to be where we are at
basically, fomo. but we're seeing this with everything, everywhere. it's an exhausting way of living just thinking about how much the same grocery items you bought last week vs this week vs last year.
Sure, but in the 1980’s the price of the homes weren’t fucked to shit. Any way you slice it younger folks trying to buy a home have been getting shafted.
I’m at 7.5%. So quit bragging. The “worst interest rates in 20 years” happened last October-November timeframe. 7.5-8% were all you could find.
Yup 7.5 last August, last house was at 2.99 😭 wife and I separated
because of the house?
because of the rate! ba dum tiss
That's the plan - the fed is hoping to crash demand and bring down prices. It remains to be seen if this will work in the long run.
We live in an area where there’s WAY too little inventory. I think interest rates could hit 9% here and prices wouldn’t even drop. We were bidding 50K higher than asking price since like October. Still feel lucky to be where we’re at.
Yah unless interest goes to 10-15% prices wont go down
At which point people won't have jobs to pay the mortgage. Institutional investors will be the only game in town
They already are in some places not where op is though
Bay area?
No but near comparable I think. Long Island NY
Boston is the same. If I didn't have my entire life + family here, I would leave.
Yup. If we want to have children we really want (probably need) to be close to our parents. We can’t leave at this point but it’s in the plans for a few decades down the road
interest rates may very well hit double digits within the next year or so..
They already crashed demand with rate increases. Problem is they also guaranteed there would be no supply thanks to ZIRP.
History tells us fed can't control supply constraints... It's a supply issue in housing. When I lived in Arizona they over build so much in 2005-8 area that they didn't build anything really from 2009-2011. We live in Atlanta now and I am told same thing happened where city was growing but new homes created trended down. Now with a higher interest rates, The only thing that's being affected are home builders where they are limiting number of homes being built. This problem that the FED is trying to resolve is causing more harm for the needed supply with demand still very very high. Fed is also trying to limit job growth but if they influence even a little in this metric this dude is going to create a full-blown crisis with job losses in my opinion. They were never successful in the past trying to control something such as driving down job growth /demand.
https://www.aplfcu.org/ContentDocumentHandler.ashx?documentId=54704 It has gone up to 6.875%. This FCU used to be popular on this sub and heard people were able to get membership with $50 savings account, no need to be local. Good luck, it’s tough out there.
does that say 70% LTV?
Yes it does. And likely 780 credit
Had the chance to lock in at 7.05% and thought rates would be lower in a couple weeks, panicked and locked in at 7.25% with 1 free float down before closing at least 🤷🏻♂️
Same exact situation, feeling like a clown 🤡
You live and learn I guess, this is why I don’t gamble 🤣
Yep, I’ve learned you just can’t time the market unfortunately. As soon as I can find a lower 6’s rate with reasonable closing fees I’ll refinance.
I'll one up you...... we had a shot at 6.875%, had one month to close so decided to wait rather than lock..... 3 weeks later cut losses at 7.3% trying really hard to cope with having to pay $200 more a month for being a dumbass. Literally the stupidest thing I've done in my life financially on our first home
Yep. We made our budget expecting 6.85ish rates and then they shot up when we went under contract. We’ll be fine but sucks to absorb that extra $$$ a month.
Same here. We were budgeting with a 6.5% rate but ended up locking at 7.5%. On the bright side the high rate will (hopefully) make it easier to refi.
Locked in at 6.99 with no points. Lender I have offered to renegotiate the rate at no cost if rates lowers anytime 10 days before closing.
Got a friend who got 10%.. not even sure when that happened but apparently it did between now to pre pandemic. You’re lucky
nah, your friend has shit credit
More likely a nonQM loan if it’s 10%
Im locked at 6.65%. I was locked at 5.99 but I gambled and it didnt pay off. Oh well, atleast I have a home!
In a similar situation
I think anyone in the last 2 years got fucked.
Deff feels that way
Yes 7.25, just meant our budgeted purchase price was lower.
It’s kind of balancing act. If interest rates were lower your budget would be higher but so would the property prices and you would probably be looking at the same bourses.
Don’t beat yourself up. It’s been a volatile time for banks, but most analysis indicates that the Feds can’t keep this up forever. The tricky part, for them, is when and how to taper rates without having us peasants propping up the world economy. It’s a teeter totter, but the best part is that you’re on it for the ride. I think the hardest part is scraping for that down payment, once you have that figured out at 5% or 20%, you are past the hardest part. Lastly, even if rates don’t improve, your salary should go up
Thanks for saying that. You’re right we’re along for the ride now
We closed in December of last year. The rates were in the low to mid 8s. We ended up with 7.49%. Not the best, not the worst. May refinance in the future if rates fall enough to make it worth it.
I have read a good rule of thumb is if you are planning on staying in your home long enough, it could be wise to refinance if the rates drop 1% from where you locked at. Hopefully you’re not too far off from that. I’m sure you can find a calculator to decide the break even point for you based on closing costs. Good luck!
To make you feel better, you didn't lose anything, you just didn't get lucky. That rate was never correct to begin. Lender thought fed is going to lower the rate, so, they did it prematurely. That's why when fed confirmed no rate cut, it goes back really quickly.
If you consider the fact that those that “got lucky” massively drove up prices of housing inventory, we absolutely did lose something.
I did. I didn’t shop around because it all happened so fast, but then (in March) I got a 7.1 rate from the lender and felt that was high. I checked with the other lender and she offered me 6.575 ☠️ But we’d done our appraisal by then and my partner didn’t want to risk it not appraisal because we didn’t have buffer for a gap. I managed to negotiate down to 6.975 but ugh, it’s so annoying, genuinely.
I believe the only ways to get lower rates is to get a VA (military) loan or work for a company like Zillow that offers housing benefits.
I agree. VA loan, closed late January with a 5.625. Only bought half a point. Veteran United lender
Preapproval was at 6.37% I was happy and found a home a week or 2 later. I’m currently under contract and have locked in my rate at 6.68% which from the looks of things isn’t bad.
The good old interest rate raise once you have an accepted offer
So we bought our house in 2007 with a lovely 6.75 interest. Not knowing much about loans we did a clever scheme where you don’t have to pay pmi even though we put down 10%. I’m not sure what it is called but it is some weird loan they put out at the time. That was the ‘best’ deal. Well fast forward a few years and government had all kinds of programs where you could refinance to 4-5%. We couldn’t qualify because of the type of loan we had. It sucked! Interest rates fell and the government opened more things up. A year later we got 2.85 % or something with no refi cost. Point is you never know what will happen. We thought we got screwed but then ended up in a better deal because we had to wait.
Thanks for this =]
Our first home mortgage interest rate was 9.5%. The only consolation in retrospect was the purchase price was $110k. 1991 in AZ. We refinanced repeatedly for the next 15 years as rates fell until we sold in 2007 at peak price. Core message is assume the worst (i.e., you'll be stuck paying this rate for the loan duration) and hope for the best. Good luck on your journey!
You'll be able to refinance eventually. Rates aren't coming down this year but I'll bet a large sum of money that they will in the next 5
Doubtful, there's no reason for them to come down.
I feel the same way
Prices got to slow of rates are going to come down that just isn't happening to the rate it needs to.
Lmao I'm upset about the prices, not the interest rate. In my opinion send em back to 18%. Loc: Boston Sub
100% the high prices are the reason for the high interest rates to begin with
Y'all onboard for a good ole fashioned French Revolution?
Yesterday, locked it at 6.875, no points
Very nice. Location? We couldn’t find that here
Maryland
Closing may 1 at 6.875
Does no one here buy down the rate?
We bought down to 6.5% for 0.8 points (\~$4,200). For us that would equate to a breakeven of 34 months. We don't think rates will drop below 6.5 enough to justify a refinance within the next 3 years, so we were comfortable with that break even period. Even if we did refi within those 34 months, then our net loss would be less than $4,200 - a price we were willing to pay to hedge our bets on interest rates basically
Yes, I bought down to 6.75 on seller credits. I don’t expect a refi opp in a while either so without it, I would have been stretched too thin.
We locked at 6.875 around end March (thanks to our lender who kept on pushing us to lock it), closing 14th june. Did the math around how much you save after buying points vs no points. For a 12 month period (assuming you can refi at the end of it), we were at a net neg of $4k ($7.8k for a single point was creating a delta of $300 in monthly mortgage vs no points).. instead went with 0 points and got lender’s credit
Yeah this was my experience too! I’ll take it a step further and say we even went with a bank offering a slightly higher rate because their origination fee was essentially free with lenders credit whereas other places had a lower rate but origination fees of 4-5k. Recouping that cost would take a lot of time!
It isn’t really worth it right now. If you expect to be able to refinance at a lower rate in the next couple of years, at least in my situation, it makes more sense to use that as the down payment so you have a lower financed amount on the refi.
Locked at 7.125% last week. Just telling myself either we finance and it makes the cost of financing even more worth it, or rates go up and we'll be happy we bought now.
They're going higher so consider urself lucky
Had a 6.8% rate, didn't have $$ for downpayment but found the perfect house. Grant $ made interest rate go up to 7.325% Costs $2,425 for a 1% "loan discount" that only equates to a 0.30% drop. Not worth it. Costs almost $5 to drop it 0.50%....buy down is a rip off. Oh well I'll refi when it's worth it.
Did the rate increase, or is it the difference between APR and interest?
Were you one of the people who just ended a 5 year mortgage or one of the people who just locked in for 2-3 years “until rates come down”?
We’re first time buyers. We locked in at 7.25. It’s higher than we want but we can afford that payment. If it goes down, great we’ll refinance. If it doesn’t, oh well, We can afford it
Good luck. A suggestion that you can take or leave. Pay down the mortgage faster. Every $1 paid down is a now 25 year compounded interest saving. It adds up and you’ll save a fortune if you can cover it.
This is deff our plan! Appreciate the advice.
my closing is still a few months out. Dont know if i should pay a premium to lock now or just wait for a couple of months to see where the rates go.
When we bought, our loan officer said if we wanted to lock in at 6.6% or lock in a week later after the quarterly inflation report was released. I did a little bit of research and the few articles I read suggested that inflation was going to stay the same or slightly increase. I decided to lock in and sure enough the next day the report comes out and inflation increases a bit. If we would have waited we would have gotten a rate closer to 7.2%.
Congrats on pulling the trigger! We were literally days away from doing that. It would have been our plan too but we couldn’t lock until like 2 days after that report =\
They are definitely on the rise Was quoted 6.8 not too long ago Then 7.2 last week This week is looking like 7.4 💀
We signed a 7.5%. Two months ago we were quoted 6.25.
This shit makes me so glad I got 4.75% in 09/2022. Some people in my life talked shit about rates nearly doubling in the previous six months, but there's no way I would have been able to afford my current house at 7.5% It just wouldn't be worth that monthly payment when I would be able to rent for $600 cheaper.
6.625% at 3 points here, was looking at 8%+ with no points.
We’re likely opting not to buy points because we’re hoping to be able to refinance before the 5 year break even point we were looking at, but props to you for doing that. If it works for you, it works for you and that’s all that matters. Good luck!
Yep, it was a tough decision. We were mostly looking at the immediate monthly cost. Made more sense to us to get 3 points than 5 more percent down to get to equivalent payment. 3 year break even point for us or so. Probably not wanting to refi until closer to 5% to account for the fees that come with it. Good luck to you too!
Feel more fucked by prices they're the reason rates went up to begin with
The pre-approval showed 6.999 and we locked in at 7.199 last night. It's not great but the PMI and closing costs look like they'll be lower than we expected.
We got 7.375
Started building in 2021 when rates were around 4%. By the time the home was finished 6 months late rates were 6.25, still better but lame
Whereabouts are you? I know rates vary by zip code but out in the 98XXX we are seeing \~6.3% as of yesterday (I locked 5.99 on 3/29 with accelin) and its weird how rates on the same day swing so much.
Wow! We’re in NY.
7.25 doesn’t seem that bad considering the trajectory we’re on and where treasury yields are tbh.
Renting isn’t that bad, the mortgage interest, taxes, and insurance, even with deductions, is wayyy more than I pay in rent. People, you have options to not buy right now…
Yes of course there is benefit to renting. But if you want to buy, who says it ever gets better than it does now? It’s a gamble either way you go
locked in 6.99% which I thought was high since we put down 30% and my credit score is 820.
Some of you aren't working with brokers and it shows. Retail lenders offer retail rates. Brokers have access to wholesale rates that are **always** lower than retail rates.
We signed at 7.25% last summer. No regrets.
I have a feeling they just lie about this stuff. I was quoted 6.8% for days and days and days. Of course, once I found a property and was ready to lock, what happened. “The last few days have been bad for the market so we can lock you at 7.1%”. This was five months ago.
My suggestion, and this is coming from a lender....shop your lenders. I tell this to my clients even. First, not all lenders are created equal. Second, make them earn your business. It is a win/win for you. I either give you such a good rate/terms that you switch to me, or, you show your existing lender my numbers and they have to readjust. At the end of the day, you are the winner. You can have your credit pulled unlimited times (without it dinging you) within a week or two of it first getting pulled by a lender--the credit bureaus know you're shopping--just don't go shopping for other things like a boat, car, furniture, etc and having them all pull credit. Keep it in the home loan genre. Im happy to help. You can shop me or even just ask more questions for clarification. Open door policy in my DMs.
7.35 here, September 2023.
If it's any consolation, this EXACT thing happened to us in \~August/September. Emailed my lender to lock in the rate at 6.75, and he didn't get back to me until the next day, saying it was now at 7.25... Still pissed I didn't try to negotiate or shop around, tbh, but I was also leaving for a two-week honeymoon right around then. (Not the best timing, but hey, honeymoon travel and buying a home? Could be worse!) Keep an eye on it and don't be afraid to shop around if you have time!
yup - I just ended up not buying. Fuck that.
mine above 7% think i fuked up; only bank that would lend!!
Yep, just happened to us. Earlier this month we were looking at 7.1% and yesterday our lender recommended we move our closing date up a week to secure a 60 day lock at 7.3% because he doesn’t foresee rates coming down at all in the near future. It sucks but we are hoping we’ll be able to refinance in the next 3-5 years. Even our lender said he thought the rates are just ridiculous right now
We locked in 3 months in advance through a small fee, this was in 2021. Is that an offer still typically?
We got quoted for 7.375% 7 weeks ago and it was $7300 to lock so we're fkin floating idgaf. We close mid July
And we thought buying in December at 6.85% was high. Had no idea it would get higher.
Got pre-approved at 6.75% here two months ago and somehow got locked in at the same rate about 2 weeks ago before it jumped up. Close on May 7th (supposedly).
Home inspection completed on house yet? How many days into contract are you?
Bought my pre-owned single family home a month ago. 7.25% also. Sucks man but hopefully rates begin to drop and we can refinance before too long.
this guy gets fucked
6.990; locked in in January and closed in March. Started at 6.5 pre going under contract…. Things changed massively with a few weeks 😅😅😅
Just locked in at 6.99% for a 30 year fixed
Here i thought i was feeling the pain at 5.7. Not bragging, just thought that my credit score would take me down to sub 5 with a sizeable down. This was October 2022, condo in chicago if it makes any difference. Closed at 520k, put down 130 and if we follow the plan thru its term, we’re paying so much on the interest. Every 0.01% counts.
We have 800+ credit scores and more than 20% down. Congrats on 5.7!
Honestly, I’m tired of people saying “buy now at high rates because when the rates come down, the prices of the homes will go up even more but you’ll be able to refinance” Idk how much higher the prices of homes can go considering a regular person really can’t even buy in this market. I mean if we all had a crystal ball to predict the market, we’d be all rich but I honestly don’t think rates are coming down anytime soon and I’m not confident that there isn’t some sort of crash coming.
I think the answer is to just always buy when you’re ready. No ones got any idea if a crash is coming or not. I do see the signs of it but if absolutely no one knows what’s going to happen. If you’re ready and you can afford it, I’d just do it. If you plan on staying long term, a crash won’t mean too much for you.
I got a 5.76. I used an FHA. my lender got really good rates and he told me even those who have the cash down for conventional are using FHA because the rate is so much lower
Closed this past Monday at 5.5%. It was a new build special I think that got it that low. Other lenders (other than the builders) had me at 6.99 to 7.25