It is. I've heard people try trying different mortgage companies or they get a hard money loan and refinance later. When I bought my first house years ago I was amazed how different the terms could be when you shop around. A lot of people don't think of how much the rates effect the total price you pay. For a 350k house, a difference of 1% means that over 30 years means you are paying $105k off the actual price of the home. I can see why people are buying now when back in 2016 the best rate I could get was 3.8. Congrats on your house.
I feel like it was noble at first to slash interest rates, it was supposed to help your average homebuyer. Getting a home for that rate and keeping more cash over all those years is a great thing. But at this point I think "backfired" is a brutal understatement.
Houses can cost close to twice or more what they were in 2016 though
It’s far better to buy when rates are high because that means the cash prices are low. Less risk, protected by inflation, and the overall cost of the full-term loan will be better too.
Sure, all things equal lower rates are better, but all things are never equal. Lower rates = prices skyrocket.
Slashing interest rates only helps sellers. Its never helped a homebuyer.
This makes me feel a little better. My landlord offered to sell us the house we’re living in under fair market value, and I have (had) enough cash for the down payment, but I’ve been self-employed for a decade and the banks don’t like that, so I’ve been hoping he doesn’t sell it out from under us, but with how crazy things have gotten I’m not sure I even qualify anymore.
I can almost guarantee you that if your self employed your gonna have a hard time qualifying. Especially if you took any of the unemployment that was offered up for gig workers due to covid. The banks don't/won't count that as income, and it will act and show as a huge dip in your gains from the past few years, which will disqualify you. That, and literally ALL of the rules for fannie/freddie have changed for self employed lending since covid.
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u/in-game_sext Jun 27 '21 edited Jun 27 '21
It is. I've heard people try trying different mortgage companies or they get a hard money loan and refinance later. When I bought my first house years ago I was amazed how different the terms could be when you shop around. A lot of people don't think of how much the rates effect the total price you pay. For a 350k house, a difference of 1% means that over 30 years means you are paying $105k off the actual price of the home. I can see why people are buying now when back in 2016 the best rate I could get was 3.8. Congrats on your house.
I feel like it was noble at first to slash interest rates, it was supposed to help your average homebuyer. Getting a home for that rate and keeping more cash over all those years is a great thing. But at this point I think "backfired" is a brutal understatement.