Table for 1.33m at 7.65% for 30 years. At the end of 6 years one will pay half of the home's worth in interest. Hey but I'll save $$$ on tax so that a good thing right! /s Welcome to home buying in this crazy market. #mortgage #housing #sanfrancisco
Noob question- What’s the max tax deduction?
Buying at these rates and prices is fool's errand
You will refinance eventually so this is an overestimation of what you will actually pay.
Did your crystal ball tell you the interest rates in 6 years?
I cannot imagine the trauma if rates continue up towards 15% over the next 6-10 yrs.
Prices go up 10% easily per year. It’s free money
like it did last year? lol!
The best financial decision I ever made was to move from my home country to the Bay Area. The second best financial decision I ever made was to move from the Bay Area to a cheaper place. I really enjoyed my time there but the Bay Area is simply not worthy the housing premium. Now I live on a 5-bedroom, 3500 sqft house with a pool in the backyard and my mortgage is 6% of my TC.
You need to know the tricks to get a 6.25% mortgage. Wells Fargo for example has a 6.75% rate on a 5 year arm that you can lower 0.5% with relationship pricing. If you are paying for a fixed 30 year now you are doing it wrong. Plus who holds this for 30 year? At 500k TC you pay it off in a few years before the arm itself expires. If rates drop by then you can instead refinance
Market is normal, not crazy. 7.5% is the 50 year average.
if only interest rate and prices moved with each other, i'd say market is normal. In Bay area: - interest rate high -> house prices high - interest rate low -> house prices high - rto -> house prices high - no-rto -> house prices high - covid -> house prices high - no-covid -> house prices high - wars -> house prices high - earthquakes -> house prices high - liquefaction zones, super fund site, noise, 101, 280, crime rate, smilpitas -> house prices high you get the idea.
7.5% interest is not normal when combined with houses being 6x area median income. Last time it was that bad homes were 2.5-3x. Buying 1 home now is like buying 2 homes for most of that historical average. Not to mention how much other critical costs have inflated.