4 ms·

If this isn't true for your area, the general advice is to wait a few years. Your mortgage payments are locked in, rent increases year-over-year at single- or d

If this isn't true for your area, the general advice is to wait a few years. Your mortgage payments are locked in, rent increases year-over-year at single- or double-digit percents.

unethical_ban 4y ago
Mortgages can be refinanced at a lower rate when the market allows, correct?
- bombcar 4y ago
  Correct, however there are costs associated with refinancing (either "built in" or upfront) and in some cases the refinanced loan has fewer protections. For example, a purchase loan in California is non-recourse, but a refinance is not. However, you can get "trapped" as I did if you bought near a high point, and then interest rates and prices dropped, and since I was now "underwater" I couldn't refinance, even though I was perfectly capable and did continue to pay on the original loan. Eventually the property appraised high enough to refinance again.
  - toast0 4y ago
    > For example, a purchase loan in California is non-recourse, but a refinance is not. That's not the case for refinances after Jan 1, 2013.
    - bombcar 4y ago
      Good to know! https://www.bankruptcysoapbox.com/california-extends-protection-for-home-loan-borrowers/ https://www.bankruptcysoapbox.com/california-extends-protect...
- bluGill 4y ago
  IF/WHEN the market allows. There is no particular reason to believe rates will go down again. They might, they might not. Historically todays rates are around the normal low.