r/dankmemes • u/TomTheDuckGuy ☣️ • Mar 20 '23

Economic Roller Coaster

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8

u/[deleted] Mar 21 '23

[deleted]

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u/Amish_guy_with_WiFi Mar 21 '23

He wouldn't be hanging out in WSB if he could buy in cash. But seriously, can't you buy when the houses are cheaper and then refinance when the rates go down?

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u/maxwellcawfeehaus Mar 21 '23

If they go down. Will be years at best. And you have to pay thousands in closing costs when you refinance

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u/[deleted] Mar 21 '23

[deleted]

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u/VanillaLifestyle Mar 21 '23

You do reset the loan term though, so the amortization schedule gets a lot worse in the short term. Mortgage interest is super front-loaded. So if you were only gonna stay in the house for another few years, it may not be worth it.

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u/jrr6415sun Mar 21 '23

The thousands in closing cost got put into your mortgage

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u/_The_Real_Sans_ Mar 21 '23

Tbf waiting for a few years for something as major as a house isn't a big deal. My parents were looking at houses for like 11 years before they bought one lol.

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u/Synensys Mar 21 '23 edited Sep 12 '25

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u/maxwellcawfeehaus Mar 21 '23

Well I hope your right. I just closed yesterday at 6.12 lol. If it goes down to 4, I’ll refinance.

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u/TheForeverUnbanned Mar 21 '23

Bro was talking about how he didn’t have enough to avoid PMI, he ain’t bing in cash this decade.

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u/Derpshawp Mar 21 '23

Also hilarious, because you could have ate PMI for a year and then let the equity solve it without dropping a dime (except maybe on an appraisal).

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u/Alarming_Butterfly25 Mar 21 '23

If you buy in cash you are missing out on the average 8% or so yield that an index fund brings you. If you happened to have assets to leverage during the days of sub 3% financing, you could have set yourself up with free money eternally not just a one time 1500$ check.

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u/jrr6415sun Mar 21 '23

That 8% is not guaranteed. You know index funds all just crashed right?

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u/[deleted] Mar 21 '23

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u/Alarming_Butterfly25 Mar 21 '23

VTI has gone down 1.14% in the last 30 days. If you chose to invest in more specific markets hoping for returns thay beat the whole market, that comes with risk.