Im 30, turning 31, saved myself 300k. Houses in my area are 800k to 1.1 million that all need work. People tell me im doing well. If im doing well, everyone else is screwed because if I took every penny I had and put it into a house, it would eat 80% of my paycheck.
That’s an interesting take. Maybe the question to ask is why are you comparing your journey to people who are able to afford million dollar homes but not to people in your own income group. There’s that saying about how comparison is the thief of joy… Best of luck 🥂
@@DarkLordJmac While that may seem like a great rate of return, when you actually do the calculations, it may not be as large as it appears when you account for the expenses, interest costs, etc. But that really wasn’t my point. We are where we are and we still have to compare apples to apples. From my perspective you are crushing it to be able to save that amount of money at your age and you should be very proud. You are probably doing way better than 90% of your peers so keep doing what you’re doing and you’ll be just fine. Nobody forced the host to buy the house he bought for the rate he got. He’s a big boy and knows how investing works. He’ll be ok. Don’t be guilted into feeling like you’re missing out. There will always be another house.
I’ve heard that the Fed is also unloading a bunch of mortgage backed securities that they had bought during the pandemic to try to boost the economy at that time, so now there’s too much supply of mortgage backed securities relative to buyers, which might be contributing to mortgage rates climbing.
When interest rates are low, it can lead to higher home prices and less inventory in the housing market. Also higher interest rates can have an impact on your tax situation, especially when it comes to itemizing deductions on your taxes.
Love this channel !!! Bottom line is who cares - get a home when ready and within your affordability and pay it off asap. I got mine at 6% 17 months ago and i am 13 months away from paying it off. Would have done the same at if interest rate was 2% too. I don't care abt ppl who say - oh markets make more if home loan is at 2%. Yeah good for u all Einsteins. I rather have 0 debt and sleep peacefully 😎. You all go buy your private jets 😂😂😂.
I disagree. Most refinances actually put you longer into debt and make you pay additional costs. It’s a big shadow game offered by banks to make you pay even more interest to them over time.
Depends on the remaining amortization chart details, but it's possible you could have more cash now to invest into presumably higher returning assets over the length of the new term, so refinancing *can* be a net positive if they coincide with equity market drawdowns.
false. Previous mortgages at 14% had housing prices that were one third of what they are now. I paid a 14% mortgage so stop crying. Very bad analogy. 14% for a $250k mortgage is not the same as $800k at 8%.
Im 30, turning 31, saved myself 300k. Houses in my area are 800k to 1.1 million that all need work. People tell me im doing well. If im doing well, everyone else is screwed because if I took every penny I had and put it into a house, it would eat 80% of my paycheck.
That’s an interesting take. Maybe the question to ask is why are you comparing your journey to people who are able to afford million dollar homes but not to people in your own income group. There’s that saying about how comparison is the thief of joy… Best of luck 🥂
@RothBalloon because 5 years ago these houses were 300k to 500k
@RothBalloon my parents purchased the house i grew up in for 130k. He sold it for 700k.
@@DarkLordJmac While that may seem like a great rate of return, when you actually do the calculations, it may not be as large as it appears when you account for the expenses, interest costs, etc. But that really wasn’t my point. We are where we are and we still have to compare apples to apples. From my perspective you are crushing it to be able to save that amount of money at your age and you should be very proud. You are probably doing way better than 90% of your peers so keep doing what you’re doing and you’ll be just fine. Nobody forced the host to buy the house he bought for the rate he got. He’s a big boy and knows how investing works. He’ll be ok. Don’t be guilted into feeling like you’re missing out. There will always be another house.
Yes But Capitalism is better than all the alternatives 😁
love these mini topics - thanks Jill!
These little bits might not be for the broader TCAF crowd, but I appreciate them nontheless. Thank you, Jill.
I’ve heard that the Fed is also unloading a bunch of mortgage backed securities that they had bought during the pandemic to try to boost the economy at that time, so now there’s too much supply of mortgage backed securities relative to buyers, which might be contributing to mortgage rates climbing.
I love these shorter format , one topic videos
When interest rates are low, it can lead to higher home prices and less inventory in the housing market. Also higher interest rates can have an impact on your tax situation, especially when it comes to itemizing deductions on your taxes.
Wait would love to know Mark T’s backstory on how we went from 3.5% to 6.5%. I am sure there is a good story here why.
Great explanation!
Great commentary.
Good video
Producer of a personal finance show and sweating mortgage rates????? Omg just stop already.
Price to income was much more doable decades ago!!!!!!!
Is inflation expansion???
Does that mean my 2.875 30-year rate is good? When should I refinance? 😂
Love this channel !!! Bottom line is who cares - get a home when ready and within your affordability and pay it off asap. I got mine at 6% 17 months ago and i am 13 months away from paying it off. Would have done the same at if interest rate was 2% too. I don't care abt ppl who say - oh markets make more if home loan is at 2%. Yeah good for u all Einsteins. I rather have 0 debt and sleep peacefully 😎. You all go buy your private jets 😂😂😂.
I disagree. Most refinances actually put you longer into debt and make you pay additional costs. It’s a big shadow game offered by banks to make you pay even more interest to them over time.
Depends on the remaining amortization chart details, but it's possible you could have more cash now to invest into presumably higher returning assets over the length of the new term, so refinancing *can* be a net positive if they coincide with equity market drawdowns.
73rd like 🥳🥳🥳✌️✌️✌️
Total waste of time.
Go touch grass, Marty.
false. Previous mortgages at 14% had housing prices that were one third of what they are now. I paid a 14% mortgage so stop crying. Very bad analogy. 14% for a $250k mortgage is not the same as $800k at 8%.
Chill bro