4 ms·
Being able to afford 20% down on a mortgage is something affordable to less people every year. With rates increasingly quickly, it's not going to be much cheape
by cammikebrown 4y ago
Being able to afford 20% down on a mortgage is something affordable to less people every year. With rates increasingly quickly, it's not going to be much cheaper if prices fall too.
- onlyrealcuzzo 4y agoSo buy at 3.5% down. The more leverage you have - the more you're taking advantage of The Federal Reserve mandate that prices go up at least 2% per year. 2%x33 = 66% return GUARANTEED by yours truly, the Federal Reserve.
- bamboozled 4y agoMaybe, in the back of peoples minds, we all know "The Fed" isn't magic and crisis do happen. So if this "guaranteed 2%" falls apart, it's going to freaking suck for a lot of people.
- dayjaby 4y agoIsn't it an exponential formula instead of a mere multiplication? 1.02^33 ?
- onlyrealcuzzo 4y agoIf you put 3% down on 100k = $3000. If prices appreciate 2% = $2000. $2000 / $3000 = 66%