5 ms·

People in their mid-30s who put off having kids and buying a house because they couldn't afford it until just now. Bunch of people born 1982-1986 are just now p

People in their mid-30s who put off having kids and buying a house because they couldn't afford it until just now. Bunch of people born 1982-1986 are just now putting their lives together after riding out 2008. The 1984/5 years were an especially large class. People 1982/3 are just now starting to age out of their prime childbearing years ("biological clock").

shwoopdiwoop 6y ago
1984 here and buying. Spot on!
Frost1x 6y ago
I was quoted on a 30 year fixed rate mortgage at 2.62% APR with no pre-payment penalty (locked in at the mortage dip). Plan to pay it off in a fraction of the time, but it gives quite a safety net at such a low rate I couldn't pass it up. 15 year mortgages were even lower (2.38% APR at the time) but I didn't want to gamble too much with COVID uncertainties (for all we know this pandemic could ride on 2-5 years). If you're fairly financially solid and looking at real-estate, it's not a terrible time. My agent also offered a COVID plan free which declares my agent's agency will re-list and resell the property for me at no cost should I desire within one year (obviously, I'd lose any difference in value should the the market value decline, but if things get truly nasty, I can likely bounce out before the market adapts given how quick sell turnover rates are here). No closing costs would be charged under this case (obviously any require renovations would be my liability). I should add that my mortage will be less than what I'm currently paying in rent... and in pretty solid tech hub that isn't SF.
- jdhn 6y ago
  Damn, 2.62%? That's absolutely nuts. Makes me think I should look into buying a house...
  - brlewis 6y ago
    That's not for sure. Low interest rates drive prices up or prop prices up. To find the ideal time to buy you have to know the future: if rates are higher than they're going to be, you can buy at a lower price now and then refinance when rates drop. Of course, knowing if/when rates are going to drop is the hard part.
    - Frost1x 6y ago
      This is spot on, housing prices around this area have increased in some cases to insane levels but they were increasing already pre-pandemic. Overall, with a lot of research and searching, I found a good buy under a very special set of circumstances (at least I hope--there could be hidden issues but I've been very thorough). Some other homes have inflated to ridiculous price points around the area (as if they weren't already incredibly high). It's always a balance looking at interest rates and price, so you have to be careful. Also, there's nothing saying the pandemic won't completely gut the economy and housing market in this area for years to come or even indefinitely. It's possible rates could drop lower. I'm currently betting that in the long 30 year run, it won't, for a variety of other situational reasons. YMMV.
  - nasalgoat 6y ago
    I'm getting rates of 1.65% for variable 5-year.
  - Fjolsvith 6y ago
    Almost free when you consider the tax deduction.
- tcbawo 6y ago
  Why would you pay it off early? Can't you find a better return elsewhere? Even if you think the S&P 500 is currently overvalued, the dividend yield is 1.8%. It makes sense to buy if you plan to stay in an area long term. But, I would be wary buying if you expect to move geographically or outgrow a home within a 5-10 year horizon. If you stay local, your next home will likely rise and fall with your current home.

shwoopdiwoop 6y ago

1984 here and buying. Spot on!

Frost1x 6y ago

I was quoted on a 30 year fixed rate mortgage at 2.62% APR with no pre-payment penalty (locked in at the mortage dip). Plan to pay it off in a fraction of the time, but it gives quite a safety net at such a low rate I couldn't pass it up. 15 year mortgages were even lower (2.38% APR at the time) but I didn't want to gamble too much with COVID uncertainties (for all we know this pandemic could ride on 2-5 years). If you're fairly financially solid and looking at real-estate, it's not a terrible time. My agent also offered a COVID plan free which declares my agent's agency will re-list and resell the property for me at no cost should I desire within one year (obviously, I'd lose any difference in value should the the market value decline, but if things get truly nasty, I can likely bounce out before the market adapts given how quick sell turnover rates are here). No closing costs would be charged under this case (obviously any require renovations would be my liability). I should add that my mortage will be less than what I'm currently paying in rent... and in pretty solid tech hub that isn't SF.

jdhn 6y ago
Damn, 2.62%? That's absolutely nuts. Makes me think I should look into buying a house...
- brlewis 6y ago
  That's not for sure. Low interest rates drive prices up or prop prices up. To find the ideal time to buy you have to know the future: if rates are higher than they're going to be, you can buy at a lower price now and then refinance when rates drop. Of course, knowing if/when rates are going to drop is the hard part.
  - Frost1x 6y ago
    This is spot on, housing prices around this area have increased in some cases to insane levels but they were increasing already pre-pandemic. Overall, with a lot of research and searching, I found a good buy under a very special set of circumstances (at least I hope--there could be hidden issues but I've been very thorough). Some other homes have inflated to ridiculous price points around the area (as if they weren't already incredibly high). It's always a balance looking at interest rates and price, so you have to be careful. Also, there's nothing saying the pandemic won't completely gut the economy and housing market in this area for years to come or even indefinitely. It's possible rates could drop lower. I'm currently betting that in the long 30 year run, it won't, for a variety of other situational reasons. YMMV.
- nasalgoat 6y ago
  I'm getting rates of 1.65% for variable 5-year.
- Fjolsvith 6y ago
  Almost free when you consider the tax deduction.
tcbawo 6y ago
Why would you pay it off early? Can't you find a better return elsewhere? Even if you think the S&P 500 is currently overvalued, the dividend yield is 1.8%. It makes sense to buy if you plan to stay in an area long term. But, I would be wary buying if you expect to move geographically or outgrow a home within a 5-10 year horizon. If you stay local, your next home will likely rise and fall with your current home.