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A comment on U.S. mortgage interest rates jump to 7.16%, highest since 2001. Parent comment

Re:U.S. mortgage interest rates jump to 7.16%, highest since... by ltbarcly3 on Wednesday October 26, 2022 @10:57AM (#33344661)
This is correct, you will pay more to service the loan but only until you can refinance it. If you pay more in a low interest rate regime you have no way to improve your situation, and no way to sell if you need to.
[ Parent | on HN ]
Re:U.S. mortgage interest rates jump to 7.16%, highest since... by _huayra_ on Wednesday October 26, 2022 @11:00AM (#33344737)
Yes, I would rather pay usurious rates with a commensurately low price. Even though it would be terrible basically having the vast majority of my monthly payment going purely to interest for a long time, it's possible to:

- refi at a lower rate in the future

- sell the house without having to take a huge loss compared to low-% bagholders

[ Parent | on HN ]