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It's a risk though, because you may not be able to refinance for a long time. In that time, the interest you paid will also compound.
by pertymcpert 4y ago
It's a risk though, because you may not be able to refinance for a long time. In that time, the interest you paid will also compound.
- nostromo 4y agoAnd people often forget that rates go down at the same time people get laid off and the market crashes and house prices go down. If you're unfortunate enough to be out of work, you won't be able to refinance your loan. And if you're upside down on your loan, you can't refinance either.
- whimsicalism 4y ago> And people often forget that rates go down at the same time people get laid off and the market crashes and house prices go down. This is really difficult to describe as a general trend due to endogenous actors like the Fed. Recessions can co-occur with low rates as the Fed expands to try to spur investment in the economy. They can also co-occur with high rates that choke investment. Never reason from a price change
- 01100011 4y agoNot a problem if you can service the debt. Sure, you could be missing out on other investments with that cash, but if you buy conservatively it's not a bad plan. One thing I haven't seen anyone predict is sustained high interest rates. More than likely, rates will be back down below 5% in a couple years as the fed tries to restart the economy it crashed.