Interest Rates Suck Now - Should You Even Buy Now??

[@charityscreams5366]

Thank you for not riding the crazy train, I've been watching you and some of the crazies for forever it seems. I stopped believing the hysteria a long while ago. It Took over a year to purchase my home (closed mid jan) but I got a great deal (all luck, sellers in a hurry, accepted 1st offer at asking) and 2.8% in Texas hill country. I'm very happy I kept at it, at today's interest rates I would be shopping at a 20% lower price to end up with the same monthly payment. I would be priced out today.

[@sergioestrada4975]

I got approved here in Oregon at 5.5 interest. Should I stay away from buying? The crazy thing is my credit is excellent

[@charityscreams5366]

@@sergioestrada4975 if the homes are overpriced in your area you may want to do a lot of research first

[@tincup850]

The hard part of this is that salaries are not keeping up with the market and it makes it tough to keep up with both renting and purchasing to the point of having to move out of state or somewhere way far away from the work site

[@PORTMIAMIMIKE]

That part!

[@astrahcat1212]

The problem is really utilities also, when energy costs go up everyone gets screwed.

[@Cyborg1170]

I had someone buy a home. Mortgage came out to 3000$, but after gas, electricity, water, sewage, insurance, PMI, and other expenses it is close to 4000$. That is crazy. I only pay 1200$ for rent still.

[@astrahcat1212]

@@Cyborg1170 This is the point I'm making but also, if you have a good lease it'll state exactly what the landlord pays in fixes. In Cary North Carolina it was like $1000 a month pre-pandemic for a nice 2 bedroom 2 bathroom, fully walkable to everywhere, and it was great. Never had to worry about maintanence or anything and could bicycle wherever I needed to go saving in gas. When the gas shortages came up in North Carolina, wasn't effected at all by it. Now those rentals are $1600 though, so there's the problem right there. If the rent was still at 2019 levels I'd be rolling high right now, personally can't afford the 50% more over 2 years : / Renting you can invest in other things, in fact, stocks have since 1960-1970 gone up probably about double the rate housing has, so if you invested like 60 years ago into stocks instead of housing, just ignoring crashes and just keeping at it, you'd have just as much if not more than investing in property. Also, with renting you have mobility, it's better for a bachelor or single lifestyle, while buying a home seems more for a family kind of deal. The REAL problem ISN'T renting vs buying, you shouldn't be running from renting with buying a house. The real problem is the currency is devaluing and devaluing more and more and the whole everything shortage that's causing price increases EVEN WITH the raising of interest rates.

[@asadb1990]

salaries are going up provided if you are switching jobs often.

[@yazminvaldezmartinez251]

I'm a mental health therapist in the market for my first home, and I truly appreciate you taking the time to acknowledge my feelings. I feel so validate !

[@genxtechguy]

Those rent payments aren’t going to stay at $2,000 per month for 10yrs. The monthly payment will more than likely go up a couple hundred dollars every year. I think in the long run owning will definitely be more profitable.

[@digleman1]

Yeah, but average price here is 400k, so a 30 year is like almost 3k a month. That's not very competitive

[@flyingscotsman32]

Agreed. I’m on an 18 month extension I signed December 2020, before the market started going crazy. I’ve noticed smaller units in my complex went up a few hundred dollars last year. The unit above me with the identical footprint just listed for over $700 a month more than I’m paying right now. Thankfully I’m closing on a house next week (earlier than I planned to in 2023, but I don’t regret it at all).

[@asadb1990]

@@digleman1 sure but you also get a return from this as well. when you rent, you are just paying the landlord's mortgage.

[@marcochavane3124]

Agreed. We closed last Monday because rent went from $1,100 to $1,500/month for an 1,100 sq ft duplex. with more increases forecasted. Other rentals in the area are approaching $2,500 for a house our size. Rent never goes down and now we are in a nice 1,650 sq ft remodel with a $1,350 mortgage.

[@user-jy7yw5kw3w]

I’m about to just move out the country lol $2000+ for rent or mortgage is insane either way, working remote we can live like kings elsewhere. The American dream is dead.

[@Overland-460]

My interest jumped from 3.5% to 4.125%. We finally got the house, it's closing on 4/1. I don't care if market is going to crash. My wife really loves the house, that's all matter.

[@BURNTKNIGHT23]

Same. My interest is 5.125 locked. Closing the 14th. All I want is to see the wife happy and kids with a large backyard.

[@Overland-460]

@The Failed Financial Advisor We got really good deal on our house, it's only 20k over asking price. Good neighborhood, and only 25mn from our workplace. We don't plan to move anywhere in 20 years, we probably do when we both retire. My wife and I are ready for this future, we're both making good money. We're planning to have kids after we get the house. So this is our future, I can't just sit and pray for the market crash to build my family.

[@lesliessgarciaa]

same, I had 3.3 and jumped to 4.125. We close 4/22.

[@PerForMSR]

@@BURNTKNIGHT23 they will be so happy when you cant afford the payment and consequently lose the home. Causing your relationship to suffer and ending in a divorce which will cause your kids to grow up in Separate households, referring to the guy their mom is dating as “dad”. Which you cannot stomach and eventually get arrested for assaulting the guy. The end

[@BURNTKNIGHT23]

@@PerForMSR nah. I make 7 times the monthly payments my house mortgage will be. I’ll be fine lol.

[@FUNNYBUNNI1]

In 2007 We bought a townhouse in Los Angeles for $324k, went down to $150 after the 2008 crash but it is currently at $465. We did end up doing a short sale on that home in 2011. We just bought a home in North Georgia for $336k at 4.25%. Monthly mortgage is $1685 (taxes and insurance are already in this amount). Even if the market so called “crashes” (which I highly doubt ) , in a couple years will go back up and you will STILL make even more.

[@erikaquiroz1206]

I just locked a rate today at 5.25%. I got an extended rate for 120 days for a new build. The most important thing is that I’m comfortable with the monthly payment. I also purchased the new build for 70k less than what the same floor plan is going for.

[@twincherry4958]

How, why 70k less?

[@AMRGca]

You way over paid , track houses fall like a brick

[@caball3ro]

Appreciate this vid man, staying on marinate-mode while I stack for a down payment, closing cost, emergency fund, and a buffer bc I'm the only one in my fam that I can depend on to save me if anything crazy happens to me. Got to move that move when, and only when, I'm ready

[@blerdstatic8187]

Look into the NACA program. No down payment, no closing costs, no PMI and 1% below the national average interest rate. It's a real program for first time home buyers and is completely free.

[@vatic5000]

Man that’s deep.

[@six6goddess214]

@@blerdstatic8187 Its not easy to get naca loan

[@blerdstatic8187]

@@six6goddess214 trust me I know 😂.

[@six6goddess214]

@@blerdstatic8187 My Tenant been getting to get NACA for years now. I have to fill out the Landlord portion rent reporting.

[@pending6423]

Early 2020, I was ready to buy as soon as my partner was ready to move from out of state. By the time she moved, housing market got too hot and we couldn't buy in the area where I work. In 2021, housing price got too high and I couldn't buy anything with what bank is willing to lend me. In 2022, my income increased but the interest rate also went up so we still can't buy anything. At least my landlord decided not to raise rent for another year.

[@AB-lm6dy]

Shiiit! Story of my life.. i got a significant raise at work right when interest when up… the first time in my life i was about pissed about a raise lol…

[@richdelgado3405]

As someone who purchased a house in the 90s at about 8% interest, all I can say is no, interest rates most certainly do NOT suck. High home prices, greedy sellers, low supply and institutional investors buying up properties...THAT'S the problem.

[@heslind]

Easy for you to say. You bought your house for pennies…. Then you probably refinanced several times to much lower rates all while watching your home value sky rocket.

[@reinaldomartinez13]

@@heslind he's still correct about what the issues are

[@sanjidaalam1897]

Ask your self if you bought a car for 1000 and now the market value is 5000 are you going to sell it for 1000? Greedy sellers is a ridiculous statement. Sellers want the most for their house like all sellers do for all things. When buyers complain about greedy sellers, it tells me they are being priced out of the market. Unfortunate but not the sellers fault.

[@CyFi6]

How about this - the interest rate on its own doesn't suck, the home prices on their own don't suck, the combination of the current interest rates and current home prices suck!

[@monicarenee7949]

I think your second half highlights the problem, interest rates alone wouldn’t be an issue, it’s just the combo with high prices is what makes it crazy. I’m not seeing prices go down with the rates up yet.

[@justinfowich6662]

I remember like 3 years ago seeing 4.3% interest rates and thinking "no way they ever get lower than this".

[@iomis2001]

To rent a one bedroom in my area right now it's $1,200 a month. So I decided to buy a one bedroom and it's $700 a month. Yes it is small, about the size of a one bedroom apartment, but with the $500 a month I save I can put that into my house. Also, my mortgage is fixed, so it won't go up over time like my rent used too. People have this idea that you need to have a big home with a big mortgage, but you really don't. I am more than happy with my small 465 sq. foot house that is $700 a month. If you don't have kids, why do you need a big house?

[@Haruzak1]

Where do you live?

[@BifocalOlive4]

man you don't know how much I needed to hear someone say "I acknowledge your feelings". I would like to think I'm smart on facts and figures, but this still sucks -- mostly because I can't buy when I'm ready, I'm gonna have to buy because I have to. great video

[@michellemiller8512]

Seriously! Thank you

[@MechPaul]

I was lucky and bought a townhome at 415k in August 2020. Bought with 5% down at 2.875%. My current PITIH+PMI is 2720. People called me insane for buying during COVID and didn't I realize the economy was going to crash? If I were to buy today, the townhome is valued at 750k. After 4.5% interest, the PITIH+PMI is ~4800/mo. People are now calling me a genius for having bought. People calling the crash are still here and still getting hundreds of thousands of views. I am never moving. Ever. I can't afford to.

[@paigow66]

I'm in the same boat. I bought new construction last year in April. My location is in high demand, my house went up 38% in one year. At today rate and house price I could no longer afford the house I bought just one year ago. So crazy. My friend was also looking but couldn't close a deal. Now due to the rate and price increase they have to downsize or look in a different city. Sometimes waiting doesn't pay off.

[@damiandmb2092]

my house cost less than yours......$415k for a small "home" isnt something to brag about 🤷‍♂️🤷‍♂️

[@MechPaul]

@@damiandmb2092 who said anything about bragging?

[@efrainjuarez5589]

I bought a new construction home from Lennar in September 2020. I myself bought it for the exact same reasons Javier pointed out. I have to admin I was worried that at some point the real estate market would crash and here I was buying at the peak. Today I am very glad I bought. The house has appreciated nearly 50%. The truth is, nobody have predicted something like this would happen. I wish the prices would go down by 10 or 20%. I am ready for a second house, but not at this prices.

[@BillyBob-op6lg]

Lol you really think that place you bought is really worth almost double what you paid just over a year ago?? And that doesn’t scream bubble to you?

[@wonttakethewidepath7851]

I so appreciate you acknowledging this reality Javier. I’m closing in 2 weeks and have definitely been spooked by the increasing interest rates, even thinking I procrastinated too long & put myself in this position. Your explanation makes me feel a little better knowing I still benefit in the long run & I anticipate earning equity very quickly in my new neighborhood.

[@marilynsaenzdeviteri6009]

I just really appreciate your insight!!! I’m a single mom my family , my kids rely on me. So I will buy the house when the right House comes my way even if that means a higher rate it won’t be forever… the market is always changing… I can always Adjust the rate , refinance etc . What’s the name of the application you used ?

[@Londonbridge978]

Who signs a 10 year lease? Rent goes up every year so that needs to be accounted for

[@cheerios4canaries]

This!!!!

[@sluggingbread]

Yeah no shit, he mentioned that

[@DeathsInverse]

Me here today wishing rates were 4% 😢

[@TripDadLife]

Same

[@valeriegarcia8678]

After studying the trajectory of great assets like real estate, dividend paying stocks of blue chip companies, gold, oil etc,my conclusion is that most great assets never come down to the price that you want them to so you can buy. Just buy the ones you can afford today🇨🇦🇨🇦🇨🇦

[@noname-mm9of]

You are so wrong.. Just look at the stock market; s&p is literally down 25%; could go down even more. The housing market in 2008 went down by a huge margin. So… it could go down to a price that you want it for, you just have to be patient.

[@CS-np2oo]

So true. We...mainly ME were waiting for crash at the end of 2020. My wife on the other hand was ready to buy when we were ready. We found a house and closed November 2020 @ 2.75%. Moved in January 1st, 2021. Here we are March 22, 2022 and we're out of our house and neighborhood by a MILE. Our house and surrounding house are valued 50-55k+ than when we bought it. We wouldn't even WASTE time looking in our neighborhood now. We're in the North Houston suburbs of Montgomery County. Good look on waiting. People may have to get what they can. My mortage is EASILY cheaper than my rent. Even with tax assessment increases.

[@jhtrico1850]

@@noname-mm9of the S&P 500 is up 16% if you compare it to 1 year ago

[@RecklessTheory]

@@noname-mm9of being patient is definetly a strategy but its really hard to predict when the market is really at the bottom or if it's just gonna spike soon after. We needed to buy last year otherwise we would be renting and seeing how rent would increase too it and interest rates still low we decided to give it our best shot and we got it at 3% in a modest house in a nice neighborhood though our house was 25% over what people paid in the neighborhood in 2019 we did get a new roof from the seller and new kitchen and refinished floors. It still needs work to be 100% but we feel we made out okay compared to 2022 rates and prices. Covid seemed to have accelerated inflation and lowered by power at the same time and I doubt it will go down much for many years if at all. It might just not increase as much per year as it cools down instead.

[@sobeliever1638]

What I got from this is people should not pay off their house in 30 years. Put extra on your payment every month so thst interest won't get ya!Pay off your house as quick as you can if buying rn.

[@harrinmz]

The interesting contra to this is, where else can you get loans at 4.5%? Your better off investing that extra money, plus 30 years from now you'll be paying back that principal with much depreciated dollars

[@TylerLali]

Rent increasing 5% year over year makes this situation much more realistic. Great video explanation as usual :)

[@eldarm434]

5%? I live in Florida, there is no law that is stopping landlords increasing rent . my rent got up 60% within 1 year

[@mastermouaable]

Buy if you can afford it. Don’t buy if you’re feel pressured to buy.

[@niya_gbisland]

The biggest thing is down payment, not everybody has 30 grand put away

[@Danny-wd3tq]

I bought my first house at 8%! Now refinanced all my properties @ 3% That was the best choice to wait two years at the 2007-2008 recession. I get paid to live. If I have to wait another year. For great opportunities I will.

[@MythicRealTrap]

8%? Is that a typo?

[@samstoff]

Don't mean to pry, but how many properties would one have to own to live life?

[@Danny-wd3tq]

@@MythicRealTrap no

[@Danny-wd3tq]

@@samstoff I have 10 doors collecting rent all profitable thanks to the refi. I did not pay any of these ridiculous asking prices now

[@mph5896]

@@MythicRealTrap I was paying 8.75% on my first home back in 2000. 30 year fixed. I didn't thing anything of it.

[@stuartmalin661]

Thank you for the sound and sane position. And for showing real numbers.

[@VicLabs]

Checking in from 2023. I would salivate over 4.5% right now.

[@joenunez938]

Buy when you believe rates have peeked. You'll get a better deal on the home price, then refi as rates drop. Especially if you're using FHA or VA cause they both have rapid refi that makes a refi cheap.

[@devilboykillz]

Plz help Javier. I am looking at a home. We was granted 150 k fixed threw our bank. The house we are looking at new sold for 79. 4k in dec of 2012. then it sold for 38.1k in 3/20/15. the last time it was sold it sold for 76k in 2/26/16. Now its for sale at 160k and in January the value was a estimated 136.4k. IS THIS A HOUSE WORTH GETTING??? we go Sunday to look at it. Do you think the value will hold or will i end up owing more than its worth. IM not worried about the intest because i always planed to refinance when the rates drop. But i hoping house prices would drop back down to normal at high interest rates. lol not be twice its original value.

[@leepitts7729]

Dude i always enjoy your videos, and i hope u keep them coming👏👍. I wanted to share my home buying experience........February of 2021, i got my new build under contract with an interest rate around 2.8%, but the construction on the house was put off til around June-july. So i had to start the loan process over again, and by that time the rates had increased and I ended up with a 3%rate. I didnt wait hoping that the rates would fall back under 3% but i made my decision based on my readiness to purchase. So from my experience, if a person can handle the monthly payment and is financially ready to buy in this market, I think they should....we can always offset the amount of interest paid by making principal payments throughout the duration of the loan.

[@7juaninho7]

I’m so glad I locked in my offer in December and got a really good interest rate of 3%. Holy crap this market is screwed up.

[@jaybeastn604]

Foreals I got mine at 2.5. I did my research and ignored all the people that said it will crash without doing any dam research.

[@iishyxvietxboyii1]

@@jaybeastn604 not yet.

[@jaybeastn604]

@@iishyxvietxboyii1 whats your claim? 2008?

[@latsnojokelee6434]

4.5 percent Isn’t that high. That was normal back in 2009. What is abnormal are the prices of homes and the crappy condition that they are in Since sellers think they don’t need to fix anything up, which I guess given the multiple bids they don’t.

[@adaschannel2350]

Yes, they do get multiple bidders! We put an offer in very very old house that needed to be renovated completely, put 5 k over asking, we have 0 debt, 40% downpayment, 15 days closing, everything was just perfect for us to win, and we didn’t 🤷‍♀️

[@Overland-460]

Interest rate is not high, the high is house price.

[@docdeenwife12]

I actually remember when I bought my first home with my ex. We had a fixed interest rate of 7.5% on a VA loan so 4.5% is not scary to me. Of course, houses were much more affordable then

[@yeatts134]

Exactly!! Historically under 7 is still great

[@iishyxvietxboyii1]

Lol 2009 home prices were a lot lower, genius!

[@RJ-cv2uw]

I closed last Dec. on a new construction. Purchased price 398K @2.999%. Similar homes in the area are now going for 500K. Looked up some apartments closed to my community, 3b2b is going for 2900 which is way more than my monthly mortgage

[@selvakumarmurugesan9013]

Texas homes are cost like California but salary are still like texas :(

[@calvissuperman]

dude, the music is POPPIN! you got some serious bops on this channel man

[@caball3ro]

🔊🎶🎵🎵🎶🔊

[@unholyiiamas]

Yup, it sucks. When we went into contract for a new construction, we were quoted at 3.125% but couldn't lock rate since there was no closing date. We finally got a closing date this week after many delays and its now 4.875%. It's an extra $300 a month, which sucks, but we need the house. It won't break us, but definitely not fun.

[@ComixMultiplication]

I'm in the exact same situation. I didn't do my research at first and found out certain lenders will offer "extended locks" which will let you lock in early with certain stipulations

[@josephprznce5592]

I'm purchasing a home in Atlantic County, NJ, on 3/21/2022 the lenders were offering 4.1%, I am a conventional with 5% down, wife and I are above 800 credit score, home price $375k, on Friday morning 3/25 around 10am we had an accepted offer and the 3 lenders offered 4.5% interest rate, while collecting all the offers, and using the comparison lender calculator from Kyle we picked a local lender, it was noon, the rate had changed again, and the lenders were now offering 4.875%, we managed to get it down to 4.675% but last week was wild, thank you to Kyle and Javier, we had a plan and we are executing it.

[@FastAligator1234]

Lol taxes on a 400k home being 2200. I wish. In CT you’re over 8k for taxes on that home if you’re lucky. Could be closer to 12k. Such bullshit.

[@Ikotofan98]

In the totals at 7:41 at the rent vs buy the formula for total spend sims the monthly cost, yearly cost and decade. Is this correct? Or is the analysis comparing year 11 month 1?

[@youngbutternut5536]

Buy when you're ready is the only good advice out there. I'll wait it out and continue saving money. If mortgage interest rates never come back down, I'll just buy with the cash I saved and a much smaller mortgage balance that can be payed off quickly.

[@BillyBob-op6lg]

Rates will continue to go up. The fed literally said there will be 4 rate increases this year. They already made 1. There will be several more and they will have to get extreme to tame this crazy inflation going on

[@fame45stunnaz]

Just closed on my house today 4.6 in Texas but I also plan on doubling up the mortgage monthly

[@Soulecitou]

I was actually blessed to get my house $5k less than asking price with 4.98%. The biggest home and lot in the area. Yes, it needs some work, but it'll be the perfect place for our family. 😍

[@KP99]

Two simple regulations will fix this whole problem: 1. First time home buyers ALWAYS get a very good interest rate, maybe between 3.0 and 3.5%, always, no matter what market interest rates are that the FED sets for other types of loans. 2. Investors can only buy one investment property until the housing shortage ends. The housing shortage is an offshoot of the pandemic, and all kinds of rules and restrictions were put in place in every aspect of life due to the pandemic. This is no different. I know this is not technically the free market, but nothing about housing since 2008 has been free market. Homeowners were bailed out with HARP and other programs in 2008, so the market never truly corrected as it should have. Then interest rates were set artificially low the last 2 years by the Fed by buying mortgage-backed securities, keeping prices artificially high. Also, land zoning restrictions prevent lots of housing from being built, etc etc. So, we need to pound the table with all government leaders to take these two steps.

[@TyroneSettles]

Even with rates at 6.5% ,that is a bargin! The artificially low rates caused by the 07 crash spoiled todays home buyers. My first home purchase in the late 80's was close to 10%. As the saying goes, you've got to pay to play and by pay I mean setting up a budget, managing your expenses and what you can reasonably afford to purchase.

[@truthlove1114]

Agreed. We one of our homes (moved mult times) in 2004 and we feel 5.75% was fabulous. 2007 we had a 3 yr arm and lucked out with the housing crash rates dropped and we were able to refin long term. However we bought at the height of the market. Took until now for the price to come back. Honestly it’s better to have a high interest rate and a cheaper house price. People need to stop complaining about the rates. They were artificially low for way too long and now we have institutional buyers using homes as assets and really through off the market off. It wasn’t like this 10-15 years ago. Anyhoo- just do what’s smart for your personal situation

[@tic857]

my general anxiety tells me to keep renting cuz it sounds cheaper and i don't have to worry about all the maintenance. And fearful of losing income and health etc but my money/financial stability anxiety: has been kicking screaming while nauseated that im already this deep in buying a house and $1300 is nothing compared to the current rent prices around me. And telling me no one but the bank can kick me out of the house I bought if I got sick or whatever.

[@Logosapien]

Here's a very helpful advice I was given before I bought my first home: Don't buy a house if you have not learned to manage your money wisely and you don't have a stable income.

[@IIVVBlues]

4.5%, 5%, even 6% are not that high historically. In the early 80s I had an ARM at 20% plus! When I first signed, it was for 12%! The key is a fixed rate that you can afford with a stable income. The house almost always appreciates over time. You also get to deduct mortgage interest from your taxes. Real estate is one of the easiest ways to achieve leverage on your money. You get the appreciation on the full value of the house, not just the down payment you made. Speculation is another game altogether fraught with risk. If you plan to live in your house for at least 5 years, you will almost always be better off buying than renting.

[@uklb51]

True, but 4.5% is 50% higher than 3% rates. That means you are paying 50% more interest than people are that locked last year. Very dumb if the principal is now 20% higher as well.

[@jessieh.8443]

Can’t deduct mortgage interest anymore. Trump took that away

[@IIVVBlues]

@@uklb51 If we had access to a time machine, your point would be relevant. The point is you have to deal with the present. Forget the past and deal with now.

[@uklb51]

@@IIVVBlues you don’t need a time machine. The fed is locked into raising rates. Affordability is at an all time low. Inflation is further pushing people’s budgets. When supply hits the market, it’s impossible for buyers to absorb it unless we start 40-100 year mortgages. When prices stabilize look for more supply to hit as sellers will feel better about finding a new home. This moment right now is bar none the worst time to buy since 2007.

[@mph5896]

@@jessieh.8443 Thats incorrect.

[@lazystinka]

@ Javier Vidana what background music is that? Streetfighter?

[@D2O2]

You are not factoring in Taxes, insurance and PMI into the purchase? Rent will also increase over the 10 years. Every other time prices have been this expensive that have fallen, seems kinda silly to assume this is different?

[@zuffin1864]

If it means a less competitive market, maybe prices can go down, and you throw a bigger down payment at it. We be ok 🙂

[@truearabhustla]

This is what I'm hoping for honestly lol. I've been saving up my money, for a couple of years now. In a much better position than I was, but these small, old, outdated and overpriced houses is what's holding me back from buying. I live in Illinois and our property tax is real high (over 8k). Can't justify any of this.

[@tamarastone141]

@@truearabhustla I think you should get a 203k loan and just renovate an older home. That's what my husband and I did and it's like having a brand new house. I live in Homewood Illinois, right outside Chicago so I know all about those high taxes!

[@youtubemom497]

seeing your face pop up on my feed gives me anxiety because it reminds me that I’m waiting for a response to my offer on a house that everyone else in California wants to buy. this is so stressful but seriously you have been holding my hand through each step of his process. thank you so much!!

[@sergejstojanovic2518]

If I buy now and inters goes up does my interes go up as well :(?

[@bayodaman]

Also, if the interest rates go down can't you just refinance?

[@brianburton7582]

Just locked in to a 4.25% with zero down from a local credit union. Just covering closing costs. Conventional loan.

[@miracleman8022]

@Beyond Tribalism you don’t want to put any money down if you don’t have a lot of money in your savings makes no sense you know

[@PORTMIAMIMIKE]

🧢

[@sobeliever1638]

0 down makes no sense whatsoever

[@miracleman8022]

@Beyond Tribalism it makes sense otherwise you will rent forever in return for getting into debt your getting a home which you will pay of over time and it will Be yours

[@awaisashai4374]

8:10 you didn’t include property taxes in your calculations and if you’re in a city like Austin, Texas that can be a big factor bc that’s also money down the toilet. For renting to be more expensive you would need the rent to be more expensive then (property taxes+what you’re paying in interest) subtracted by the value of the homes appreciation. Usually rent will be more expensive bc the interest has been low and the rate of appreciation has been so high. Maybe I am missing something?

[@GauchoDon]

You are missing a few things.. principal paydown, rent increases, property tax(+increases)... I like the NYT calculator

[@ricksanchezsflask8794]

Pay more upfront to get a lower interest rate or get the home at lower price but higher interest. Your choice.

[@brianburton7582]

Is the background music from Sonic?

[@therealmac1044]

The purchase price your using is like down payment we’re i live in Glendale ca . You get a starter home 1000 sqf on a 5000 lot for 1.1 million you need about 200 k plus down to even look at the house . Mortgage payment with taxes would be 5,500 month not including your insurance 2550 yearly

[@carrycallender940]

Thanks for all your expertise, I'm closing tomorrow. Mr Vidaña know what he's talking about.

[@aristotlekumpis7095]

Still better than renting. Your rent could keep going up $200/year. But with a fixed payment to don’t need to worry.

[@DoubleOhSilver]

I'm just better off waiting for a forever home lol. Unless my rent goes up. I have roommates so I only pay 500/mo for a nice place and decent location. If I get another place I looked at, I pay nearly 4x as much. Might as well just save up and buy a house in cash in a few years

[@vangtk10]

Of course everyone is telling us to buy buy buy. Realtors win. Lenders win. Sellers win. The only ones who aren’t winners are new homeowners. Paying $50k-60k over asking with 5% rates is insanity.

[@mjb6446]

50 - 60k over asking? Haha, that's cute. Come to Australia and see how much people overpay for property here.

[@lionheart93]

@@mjb6446 dumb austries lol

[@favor4afavor823]

Yeah...I'll wait it out.

[@charleswagenseil5496]

Great video and thanks for being a voice of reason during this difficult housing market. Thanks for sharing the interest rate calculator. Only comment is I wish rent would stay at $2k/mo over 10 years. Unfortunately, rent will parallel the rise in housing costs.

[@kendigjl]

Unfortunately, the only way to make money when investing in anything (including real estate) is to independently figure out through a combination of hard work, curiosity and good luck what the future holds and then make decisions with the ability to stick to those decisions until you have some excellent reason not to. One of the steps to figuring out what the future holds is to stop listening to people who just want to exploit you. If someone makes you feel strongly one way or another - they're usually *but not always* full of crap. One of the reasons I like listening to Javier is that he's not trying to grab your attention using fear or greed - which are the two most obvious ways that people will try and exploit you. Javier tries to do it through knowledge and/or inspiration. Good job, Javier.

[@riversoflivingwater3831]

I agree!

[@marilynsaenzdeviteri6009]

This is why I don’t like Ramsey …. If I wait to have a perfect situation where I have money stored all over then it will never happen. I’m all on my own so I get creative and I’ll make it happen!!!! Use the brain 🧠! Work hard and most importantly smart !

[@kendigjl]

@@marilynsaenzdeviteri6009 Dave Ramsey is a grumpy old fart who wants people to believe that his way is the only way.

[@doncamillo8611]

I closed on my house mid-February on an FHA loan at 3.625%

[@Casperarizona]

Look! Its easy! Rough numbers 400k home at 4%, 2200 monthly payment! Same house 400k, 5.5%, 2800-3k a month. Interest rates will hit 6-7% by the end of the year. Same 400k home 4k a month payment. House will have to drop! Have to. To sell! Who can afford paying 4k a month. Then investors will just keep coming in a buying them up. Till there is no more! I still love your videos bruh. I like them cause they are real videos. Factual not like the negative ones. Thank You bruh!

[@jacobhernandez4347]

I appreciate your videos. You focus on the NOW regardless of what people think of the market. Finance whata subject

[@francisconunez582000]

I locked in at 4.25% I’m financially ready so and first time buyer

[@pangvang2750]

I appreciate your honesty unlike many other KZbinrs whom like to exaggerate the market crash.

[@12ay4lan]

I bought in January when rates were low. It's a new home though, so construction will be finished after 10 months. I can't lock in my rate until closer to closing and I'm feeling bummed from the rising rate

[@iishyxvietxboyii1]

Uhh did u think rates were gonna stay low???

[@terrysan8260]

when the interest rate goes up, can you ask the seller to buy down the interest rate?

[@thepunisherxxx6804]

Houses are always going up most of the time. If you buy make sure you plan for at least 7+ years, you will most likely come out on top. Outside of profit coming from someone who just got a house you also need to focus on your quality of life in a home vs renting - No close proximity/upstairs neighbors, more property to do things, more freedom, more options, no parking issues... Some of these are small but are very nice to have after coming from renting.

[@BKLNHobo]

In Manhattan you still have to deal with proximity and upstairs neighbors when you buy.

[@thepunisherxxx6804]

@@BKLNHobo Buying in the city is obviously different. You gain access to much more options and stores with everything being in close proximity and no need for a vehicle.

[@Irissa07]

Should have locked in at that rate bec now its almost 7%

[@harryl7946]

Got a 3.875 30 yr VA from Navy Federal quote yesterday. 3 pts buy down but hell! It will pay off in 7 years.

[@alexwalker5645]

Rates aren’t high, prices are high.

[@bg5097]

Will high rates force a drop in prices ?

[@PostprandialTorpor]

Will paying off a financed car purchase within the first 1-2 months affect credit score for mortgage loan assessment? Needing a car (20yo Honda) soon and want to get that Toyota tax credit but don’t think dealership will allow an all cash purchase because they stink

[@karinab.430]

Do you have a video or link on how to best determine what is our budget for a home?

[@CptnCobblestone]

Unfortunately I have to wait until around September or October to close on a house. By then interest rates will probably be around 5 to 5.5%. It sucks but it’s more likely to continue to rise rather than go down.

[@chasingourfuture7250]

Welcome Back Javier!💯

[@rameshmola8084]

Totally agree with you. It's about thinking for yourself first not the market situation.

[@T3COLY]

Can you do an excel for California prices where the mortgage payment is $4,000-$5,000?

[@DaughteroftheLight]

Interest rates are higher but they’re going to get higher the longer you wait. If you look at like “dang I should’ve just bought when rates were low” you’re making your glass half empty. We bought our first home May 2020 and let me tell you: cosmetically everything looked great. However, the roof would need to be replaced within the next 2 years, same with the water heater and ac unit. Our realtor made it seem like, “oh this is a quick fix, just put in a claim and your insurance will cover the roof”. Now, 1 1/2 year later, the roof had a small leak and the water heater is leaking. The roof cost us $2218 & the water heater another $1800+ (still waiting for permits). Our HOA also went from $250 to $500 due to “pond repairs and maintenance” in the common areas. Not to mention the lawn mower & yard tools to keep your lawn trimmed to HOA specifications. We also paid another$ 285 for a mailbox post and mailbox to be replaced to HOA specs. So we’ve spent all this but the equity has increased as well- $232k to now $300-340k. We made more in our home equity than my husband made at work-52k as a medical resident.

[@kyrey5468]

So glad I refinanced my 4.5% loan down to 2.875% in August 2021!

[@six6goddess214]

Did you go back to 30 years? Or 15 years?

[@josep9599]

That’s crazy I just bought a new build in January and i won’t be able to close until at least April next year 😞

[@livingwithlex-x]

You can always refinance when the housing interest rate goes down or get an adjustable rate mortgage right?

[@homebrewGT2]

Oh Jesus. You think 4.5% is bad, they are now 7.6% so it's definitely impossible for me T.T

[@TexansForChrist]

Wasn't long ago I refinanced my house down to 4.5% and was happy to get that low rate. But folks don't know when to be scared or when to be bullish. Meanwhile folks are making good money on KZbin monetization

[@iamtstamps]

What happens if I lose my job while under contract to buy a house?

[@danalyons5232]

Loving the sonic theme in the background 🙌🏾

[@Gregroybiz]

What I'm wondering is if you didn't buy when interest rates were low why would you suddenly buy now that they're going up? Were you asleep during the fomo?

[@astrahcat1212]

Thinking of going to Fargo ND and getting that nice arctic Amero-siberian low rent, because buying seems more pricey than renting and investing in stocks instead, just gotta wait for that big stock market crash first.

[@eNVy100]

26 Taco difference is quite a lot

[@JeanEstevez]

Im under contract for a new construction i love the property i can afford it right now, so im thinking im taking it i dont care if market crash i also pay to have the interest rate locked at 4.75% we are at like 6% right now

[@JeanEstevez]

Great video love the math

[@Enril29a]

Nice subtle Sonic piano music in the background.

[@threlkeld1]

So I just ran into this with our new home we are having built. Now the internet rates are high as shit and we just hit our 60 days to lock on our rate so we were able to buy a cheaper rate from the Leander.

[@michaelnagymichaelhanna]

Kudos !! I hope you enjoy your new house ;) Hold for the long term is the key. Buy when it make sense to your budget. Best time to buy was when you were saying market is crashing back in 2020 .. The market will get corrected but that is okay

[@BusinessWolfRay]

Another thing to consider is rent is just going to keep going up. It's not going to be $2,000 a month for 10 years. It's going to be $2,000, then $2,150 the next year, then maybe $2,300 the next, etc. There is no rent going down, unless you move which is also expensive, and that's even if you can find a cheaper place. In that 10 years, you may have to move 2 or 3 times to just be able to afford to rent. Which is going to become a massive problem when wages continue to stay stagnant and costs just keep escalating.

[@Dalerin12]

As a first time homebuyer would you get a worse interest rate even if credit score is excellent?

[@BKLNHobo]

No, but the "best" rate available today is worse than the crappiest rate available one month ago.

[@shannonroberts7242]

I have a question. If you have more than one student loan with the SAME servicer and you apply for a mortgage does .5% go on EACH of the loans or does .5% go on the COMBINED outstanding total of ALL the loans?