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/biz/ - Business & Finance

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23841091 No.23841091 [Reply] [Original]

Long story short, RSR hit my price target in the summer and I sold to buy a house. This was my plan all along but the problem is now I'm not so sure.

Is it a good idea to lock up so much capital in something like a house when mortgage rates are so low? I can put down such a large deposit on the mortgage I can get a laughably cheap interest rate. If I then re-invest my money into assets that will make more than the interest rate on a mortgage wouldn't I just be better off getting a mortgage?

>> No.23841172

>>23841091
definitely get a mortgage and reinvest your capital in something better. u already know this tho

>> No.23841253

Interest rates are really low right now because of COVID. Close to the rate of inflation. Mortgage is a good idea.

>> No.23841423
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23841423

>>23841091
You def want to get a 30 year mortgage with such low rates right now. You can invest the rest somewhere else and make a higher return.

You can also take some of the money, do some light, high ROI renovations, and do a cashout refinance to reclaim some more money from the property. Might even cover closing costs and down payment.

Just don't forget to look at first time homeowner programs, the grants are awesome, cover alot of costs (title, closing, etc) and allow you to pnly put like 2% instead of the full 20%, with no PMI.

>experience: just bought a home using this method, its good man :) going to try doing it again for rental income

>> No.23841781

>>23841091
Sounds like you already know the answer op. Yes. I also hopped on board and also plan to generate a little more income by putting up one of the rooms on Airbnb once the place starts coming together and I get some minor repairs out of the way

>> No.23841925

>>23841423
Do you have links to any good websites about this? The 2% down with no PMI is new to me.

>> No.23841979

>>23841253
No, there are plenty other factors in play.

>> No.23842029

>>23841925
First of all, take a look specifically for your state, county or city grants for first time buyers. There may be location or income exclusions specific to the area you live in. Separate from this, if the population is small enough, you may be eligible for a USDA grant or loan. Some of the loan providers may even offer some benefits like putting toward your closing costs if they're desperate enough.

>> No.23842217

>>23842029
https://www.nerdwallet.com/article/mortgages/georgia-first-time-home-buyer-programs
The programs in my area suck for me because I'm high income, non-military, and I don't want to live outside of metro Atlanta. Thanks for pointing me in the right direction though.

>> No.23842465

>>23842217
Yeah, that's a shame. They're great programs if you qualify but working within their definitions is difficult. Only other suggestion I can make is if you're buying with someone and they qualify, and you trust them enough, have them apply for everything and then have them add you to the deed after closing.

>> No.23842695

>>23841423
i will keep my 10 year for 1% or 20 years for 1.37 % but there is no way i will go for 30 years, i will probably buy a bigger house by then.

>> No.23842890

You'll probably make more money putting your money into the markets unless you're a meme trader than paying off a mortgage, but the financial security of having a completely paid off house is worth a lot too.

>> No.23843154

>>23841979
please elaborate, genuinely curious