One in 12 Homes bought in 2022 are underwater!

[lostchild]

I remember when it was 13% back years ago

Worked with a guy that had a 17% home loan back in those heady Jimmy Carter days. Just got remarried and his ex dumped their two teenage sons back on him and he had to get into a house.
Funny how an ex’s love for a child evaporates after that eighteenth birthday check clears the bank.

 

[GFB]

Facts on BlackRock Buying Houses | BlackRock

BlackRock is an active investor in the U.S. real estate market. However, buying houses or competing with individuals to purchase homes is simply not what we do.

www.blackrock.com

Not long ago black rock claimed they were NOT buying residential homes


Gee
Liars on Wall Street ?

Wow.
Never seen that happen before , (cough Enron Worldcom cough )

Are we confusing Black Rock and Black Stone again?

 

[GatorBait]

I pondered for quite a while how some people who have a lower income than me have new vehicles and lots of toys while I don’t. Finally figured I am probably just more reluctant to take on debt. I couldn’t sleep at night if I were financed up to the gills. Some people can though.

My quote is "they've either earned it or they are in debt up to their eyeballs"... no sense in trying to keep up with others. Very few inherit wealth... and they all think they can "afford it"... as they think affording the payments is what matters.

 

[GFB]

My quote is "they've either earned it or they are in debt up to their eyeballs"... no sense in trying to keep up with others. Very few inherit wealth... and they all think they can "afford it"... as they think affording the payments is what matters.

More power to them. Not for me.

 

[GatorBait]

This is why I'm stuck in my house. I've got a bunch of equity but I like my >3% interest. I'd have to buy a lot less house to even keep my payment the same as what I got. My dilemma is that I hate 2 of my immediate neighbors. And my HOA.

don't let your crappy neighbors or HOA dictate/pressure you on one of your largest financial decisions. I mean i get it... i have a huge distaste for some of my neighbors, but they are coming and going as well.

 

[GatorBait]

So many people bought without an inspection. I would think a mortgage company would require it, and I think they SHOULD require it.

However there isn't really any standard for home inspectors. There isn't a .gov license or anything like that. So you might get a good inspector and you might get a **** inspector. Luck of the draw.

some of them get referred to by the realtors as well... push things through

 

[GatorBait]

Here you go, just a little more than a $49/month difference on 30 years.

View attachment 5081667

View attachment 5081670

do the life of the loan look... that's where it should be more eye-opening for others... i understand you can refinance, but a lot of people aren't in a position to always do that.

 

[GatorBait]

More power to them. Not for me.

same here, not a huge fan of debt at all... but I know when to leverage if needed.

 

[GatorBait]

So I'm one of those people that have a 2.9% rate (bought in April of 2019)

but we are selling this house as our family is expanding and its only 1500sqft with no garage

So my wife and I just bought a much larger home with no money down and got a 7% interest rate. It sucks but we're going to make around $80k on the old house and we haven't had to spend a dollar on it. My plan is if we know we are going to stay put in the new house we will watch the rates and refinance after 3 years or so (possibly after my wifes student loans are paid off) on the other hand things could get much worse in 3 years with the entire country. But we still like this new house

you "made" $80k on the old house... did you roll that equity into the new house or finance the extra equity the new house gained over the past several years?

 

[GatorBait]

https://www.forbes.com/sites/qai/20...and-housing-prices-right-now/?sh=3e46fe0a1a77

Here is another example of how today's landscape is different from 2 years ago... this is from October:

• In 2020, the average list price on an American home was $374,500, with average interest rates on 30-year mortgages sitting at 3.11%.
• Today, the average interest rate is 7.06%, with average home prices up to $525,000.
• That means if you purchased a home two years ago with a 30-year mortgage and 20% down, the average purchase would have cost you $536,551 in principal and interest over the course of your loan.
• The average purchase in the current market would cost you $1.11 million in principal and interest over the course of a 30-year mortgage with 20% down. That’s a difference of over half a million dollars by the time you’re done paying off your mortgage.

I prefer the first option lol... yes, you can refinance later, but a lot of Americans aren't thinking that way... and with inflation, the % of Americans living paycheck to paycheck has risen to 63% as of November. Refinancing won't prevent you from house values dropping like a brick on the original purchase value when this starts correcting. I agree it won't be as drastic as 2008 and will take a little longer... but they are coming down and some people won't be able to stomach... others will have to move for work and won't be able to take the hit... numerous types of outcomes etc..

I'd put purchasing off as long as you could... If you "MUST" buy, I'd do it with every intent to refinance with a better rate later... but the equity swing is not going to be fun to watch. I've watched several close friends/acquaintances just get into more debt and extend themselves even further than they already were over the past year or so... because they can "afford it"... talking about the payments etc.. Horrible way to go through life living beyond your means.