How are first time home buyers buying a house nowadays???

[mabidi]

How big is your house?


Anything over 2000 sqr feet here is minimum 400K. Honestly I don't see anything I would consider living in that's below 550k. You're talking a 5-6K mortgage for 15 years

1800 sq ft

[DDCT1135]

1800 sq ft

That's a ton of money for what it is


In 2014, I bought a 2000 sqr foot townhouse for 240K. I paid 2k a month for 15 years. I live in a very expensive tax state. It would have been 1600 a month in a state with reasonable taxes


Crazy world we live in

[MacDaddy68]

I paid 150k for a 1300sf house here in cincinnati tbh. Its old and not perfect but my mortgage payment is a measly $860 including taxes and insurance

[mabidi]

That's a ton of money for what it is


In 2014, I bought a 2000 sqr foot townhouse for 240K. I paid 2k a month for 15 years. I live in a very expensive tax state. It would have been 1600 a month in a state with reasonable taxes


Crazy world we live in

ya i'm from new york bet our taxes are just as bad

[CulturalDecay]

Read this entire thread - and it's an utterly fascinating look into the difference in psychology between successful people, and losers.

The clearly successful people in the thread are posting numbers, data, offering solutions, finding ways around problems, thinking critically, finding smart ways to overcome obstacles, willing to delay their own personal gratification, downgrade their life, make sacrifices for the larger objective and to set themselves up for a better future.

The losers in the thread (who are the same losers in every thread I.E. Why they can't get girls, why they can't get good jobs, why they can't afford a house etc) only post reasons why it CAN'T work, the syntax is the same every time

• --> Successful person: posts data & numbers and offers a solution
• --> Loser person: That won't work because XYZ, I want what I want NOW
• --> Successful Person: You have to work your way up, here's an example of a starter home the average couple can afford then you can roll your equity into your dream home in 10 years
• --> Loser Person: That's a shack. I'd have to commute for 1hour.
• --> Successful Person: Yes, but it's in your price range, you'll be able to get your dream home in the future
• --> Loser Person: But 4-5 years ago that house was even cheaper!
• --> Successful Person: But thats how life works....this is the situation NOW, but look at these stats/numbers/data you can still afford it comfortably!
• --> Loser Person: I want what I want NOW. I don't want to do anything I don't want to do EVER. I don't want to be uncomfortable EVER. No sacrifices EVER.
• --> Successful Person: I see what the problem is now. Good luck with your poverty goals.

[bartosh]

i got 5 percent on a 15 year

only going to get worse, back in the 80s it was 12-20%

the difference is the value of the dollar was much higher back then vs the cost of the house. income was much more closely tied to productivity. i'd happily pay 25% interest on a mortgage if the house cost half as much

[JeepBruh]

Read this entire thread - and it's an utterly fascinating look into the difference in psychology between successful people, and losers.

The clearly successful people in the thread are posting numbers, data, offering solutions, finding ways around problems, thinking critically, finding smart ways to overcome obstacles, willing to delay their own personal gratification, downgrade their life, make sacrifices for the larger objective and to set themselves up for a better future.

The losers in the thread (who are the same losers in every thread I.E. Why they can't get girls, why they can't get good jobs, why they can't afford a house etc) only post reasons why it CAN'T work, the syntax is the same every time

• --> Successful person: posts data & numbers and offers a solution
• --> Loser person: That won't work because XYZ, I want what I want NOW
• --> Successful Person: You have to work your way up, here's an example of a starter home the average couple can afford then you can roll your equity into your dream home in 10 years
• --> Loser Person: That's a shack. I'd have to commute for 1hour.
• --> Successful Person: Yes, but it's in your price range, you'll be able to get your dream home in the future
• --> Loser Person: But 4-5 years ago that house was even cheaper!
• --> Successful Person: But thats how life works....this is the situation NOW, but look at these stats/numbers/data you can still afford it comfortably!
• --> Loser Person: I want what I want NOW. I don't want to do anything I don't want to do EVER. I don't want to be uncomfortable EVER. No sacrifices EVER.
• --> Successful Person: I see what the problem is now. Good luck with your poverty goals.

Only read a few pages, but this is a very good analysis of the different mindsets people have.

It seems there are a lot of people who were wrong in their analysis of what housing prices and interest rates *should* be to the point they are emotionally invested into this argument and can't face the reality of the way things actually are.

I will say I bought almost 2 years ago when I noticed the writing on the wall. Did it suck knowing I could have got lower prices and lower interest rate if I had bought earlier? Yes. However, I acknowledged what the present situation was and put aside the emotional "man this sucks" and knew I needed to make it happen. My house is up ~6% from when I bought, but I expect it to go down in a few years since I do think we need a correction. However, I am ok with this given my present and past circumstances.

[OliverHeldens]

Where are you guys getting these 8 percent interest rates from? do you have horrible credit?

i just contracted a house at 5 percent for a 15 year fixed, 30 year would've been 6.2

You might catch a dip, but rates are mostly 6.75% now with perfect credit. With costs or PMI, it’s over 7%.

[mabidi]

You might catch a dip, but rates are mostly 6.75% now with perfect credit. With costs or PMI, it’s over 7%.

https://www.key.com/personal/home-lo...age-rates.html

as of 12pm 15 yr fixed at 5.25, plus i get a .25 decrease since i do personal banking with them

30 yr is 6.25 but 6 if you bank with them

i did 15 at 5 percent since i can afford that extra 500ish a month

[OliverHeldens]

i got a 15 yr mortgage on a 310k house, payments with 5 percent down at 5% interest are 3200/month which includes property taxes/home ins and PMI

Works until you lose your job in the upcoming recession and can’t refinance because your DTI is too high to qualify. Then they foreclose.

[mabidi]

Works until you lose your job in the upcoming recession and can’t refinance because your DTI is too high to qualify. Then they foreclose.

down economy = more crime

so actually i'd get more overtime and make more money

thanks tho

[FAPhaggot]

5-6% is the historical average for interest rates, current rates are high only if you compare them to the recent period of free money at basically 0% and it's questionable if that will ever return (srs)

Personally I think the world is headed towards a more fractured state after ~20 years of globalization, bringing like 300million Chinese citizens alone out of rural poverty through huge manufacturing buoyed by cheap labour and lax HSE standards, and that it will likely be inflationary to its core even beyond what technology etc offsets. But we'll see how it turns out.

I agree on both counts of what you're saying. But the $100 trillion question for assets is, will the Fed let rates stay high to remain real-neutral in a strucurally inflationary future. And can they even do such a thing with the US's debt to income in such bad shape.

[LiveLaughLoath]

i got 5 percent on a 15 year

only going to get worse, back in the 80s it was 12-20%

Rates are at 7% now even with good credit, and looks to be climbing still.

Good for you if you can do a 15 year, but most people can't, including myself. I bought a home 8 months ago for 410k (328k loan) with 20% down (closing costs were 100k), and my mortgage is just under $2300 with a 5.65% interest rate. If I did a 15 year I may be able to afford the mortgage, but would probably be house poor. Not great with a family. Especially not great when you don't know where your insurance costs and property taxes will go in the future + how much maintenance a house requires. The only reason I was able to afford a home was because I lived with my parents until damn near 30 and saved most of my salary.

[katya422]

You might catch a dip, but rates are mostly 6.75% now with perfect credit. With costs or PMI, it’s over 7%.

Usually the best rate is about 2% over the 10Y yield.








Plus we have a couple of factors tightening up credit relative to where it was before.

Almost half of America's 4,800 banks are underwater and burning through their capital buffers.

"It's spooky. Thousands of banks are underwater.

"Let's not pretend that this is just about Silicon Valley Bank and First Republic. A lot of the US banking system is potentially insolvent."

I agree on both counts of what you're saying. But the $100 trillion question for assets is, will the Fed let rates stay high to remain real-neutral in a structurally inflationary future. And can they even do such a thing with the US's debt to income in such bad shape.

So far the market still points to a rate cut in the near future.

[OliverHeldens]

5-6% is the historical average for interest rates, current rates are high only if you compare them to the recent period of free money at basically 0% and it's questionable if that will ever return (srs)

Personally I think the world is headed towards a more fractured state after ~20 years of globalization, bringing like 300million Chinese citizens alone out of rural poverty through huge manufacturing buoyed by cheap labour and lax HSE standards, and that it will likely be inflationary to its core even beyond what technology etc offsets. But we'll see how it turns out.

Yeah I think we’re in for some interesting times ahead. A lot more dense construction in urban centers because it’s cheaper to house in urban buildings. But I think interest rates will stay relatively low, more like 4-5.

[OliverHeldens]

Usually the best rate is about 2% over the 10Y yield.








Plus we have a couple of factors tightening up credit relative to where it was before.








So far the market still points to a rate cut in the near future.

It’s pretty clear that’s still a ways off, even though the market wants it. And that’s probably when the market will correct).

[northernlights7]

The house next door to me recently sold for $20k over asking price after being on the market for like 2 days.

At this point, I just sit back with my 2.75% fixed interest rate on the house I paid mid-2010 pricing for and laugh at all the rentcels who have spent the past 3 years telling me the market was going to crash and my house would be worthless sokn. First they said the crash was coming in 2021, then they moved it to 2022 when that didn't turn out for them. Then around the summer of 2022 they started saying "give it a year or two" to give themselves a big buffer.

[blueberryboy]

That's a ton of money for what it is


In 2014, I bought a 2000 sqr foot townhouse for 240K. I paid 2k a month for 15 years. I live in a very expensive tax state. It would have been 1600 a month in a state with reasonable taxes


Crazy world we live in

I bought a 600 Sq foot condo in Canada for 310k CAD

1800 Sq ft home for 310k is unheard in my area

[DDCT1135]

I bought a 600 Sq foot condo in Canada for 310k CAD

1800 Sq ft home for 310k is unheard in my area

Canada has different mortgage rules. A 1 million house here is like a 7-8K payment. For you guys it's more like 5K. I think you have way lower property taxes