Re:Home Price to Income Ratio
by throw123123123 on Monday September 20, 2021 @09:28PM
(#28601111)
<- My monthly payments are identical to had I bought at $600k at 6%. If I stay there, I'm not much worse off. It's harder to pay off the home quickly.
You are a lot worse-off. If you buy at 6%, and then rates go down to 2%, you can refinance and your home is valued at a higher rate. IF you buy at 0%, you bought the house at the peak, and cannot refinance the debt.
Re:Home Price to Income Ratio
by j7ake on Tuesday September 21, 2021 @01:18AM
(#28602238)
You would have the same payment as someone at a higher rate because at higher rates, someone would would have purchased the same home at a lower price.
You are a lot worse-off. If you buy at 6%, and then rates go down to 2%, you can refinance and your home is valued at a higher rate. IF you buy at 0%, you bought the house at the peak, and cannot refinance the debt.