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Home Shopping/Mortgage Rates (vlemmy.net)

submitted 1 year ago* (last edited 1 year ago) by HHwwhat@vlemmy.net to c/personalfinance@lemmy.ml

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Anyone out there actively shopping for mortgages/homes in the US? What are you getting for a rate as of late? How's it going? We are shopping for homes so we haven't locked a rate. It's insane out there. We've only put an offer on one house (tons of crap out there right now) but were beat out by a cash offer with inspection waived. Even if we do end up getting a home I'm worried we're going to be one layoff away from losing it.

We've owned our current home and remodeled the kitchen and bathroom but due to its size it hasn't appreciated as much as other houses on the market. Buying a bigger home seems like a worse idea by the day with the high rates and low inventory. I kind of wish we would have bought too much house when we bought the first time instead of buying a starter home.

Edit: I'll add our budget and income and you all can tell me if I'm worrying for no reason:

Combined income: $245k
Emergency fund: $40k
Debts: $1150 car payments
Large monthly: $1800 daycare

Max budget: $650k Down payment (all equity likely): $130k

We'll be using some of our savings and a 401k loan for the down payment and then recasting the mortgage/paying off the 401k loan after the sale of our other home.

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[–] cabbagee@sopuli.xyz 1 points 1 year ago (1 children)

The general rule is less than 28% gross income on housing. I've lived close to that 28% in an apartment and it was terrifying. We weren't able to build savings at all. A house? Absolutely not. Too many hidden expenses. Within the first year alone most homebuyers have a large expense. Then there's property taxes, surprise repairs, maintenance, etc etc.

I live in a middle tier neighborhood in a low cost of living city. Most of the houses are still selling within days on the market. I'd keep your starter home and build up your savings.

[–] HHwwhat@vlemmy.net 2 points 1 year ago

We have a good amount of savings, I'm just financially conservative. We have another baby on the way and no space so now is the time it seems. We aren't in a rush though.