Since the election I’ve kinda buried my head in the sand to try and stay sane, so I’m not sure what projections are looking like for the real estate market. Unfortunately I need to move pretty ASAP and I’m having the worst luck with rentals.
So, anyone have any advice or an idea of the outlook in the next few months?
“The first few years go to interest” and “the first few years are overwhelmingly paid toward interest” are not the same thing. The shorter the term, the smaller the total amount of interest paid is (and often the better the rates), and the more principal only payments you can make the lesser the interest paid.
Of course interest fraction is different by payment, but it’s not as though the first payments you make are a lost cause: mortgage payments are always contributing to your ownership, rent payments never are. It’s only a question of liquidity in the moment. Depending on the OPs situation rent could be more than a mortgage payment, in which case I know which I’d rather pay (as long as I could afford the insurance) if I wasnt planning to move right away.
A question of liquidity over decades with the liability of a big repair, and all for the hope of building equity and not paying rent in 20+ years
I’m paying more in rent than many of my friends with mortgages yet somehow their payments are shooting up with the rate changes, things are constantly needing repair and they’re stressed beyond belief
Not a problem here in the states: mortgage rates are fixed. Also once you put some equity in, you can usually leverage it. But it really depends on your personal circumstances.
A fixed rate for the entire mortgage, like 20+ years?
Yup.
I refinanced after the last crash and my next 17 years of home loan are locked in at 3.125% interest. That perhaps makes it a different proposition.