My neighbors put up their house for sale a couple weeks ago. A single open house, what felt like over 100 private showings, and in escrow within a week. So when I read this WSJ article
Keep your eye on the prize: The house + a 30-year fixed mortgage at 3%. Best quote from the WSJ article:
As Blair duQuesnay, a financial planner at Ritholtz Wealth Management, points out, there is another upside to waiting longer to buy: You can grow the original amount by ramping up your savings. “If they’re still earning, that could add to the down payment,” she said. “And the low interest rates we’re all complaining about? That’s how you’re going to get a low mortgage rate.”
Exactly. Don’t complain about earning a low interest rate on your downpayment for perhaps 12 months. Be grateful that you’ll get a low fixed interest rate on your mortgage for the next three decades! A lot can happen in that timeframe, look at the past 50 years (via
Don’t forget that the
According to this
$50,000 is a lot of money, but your time horizon is unknown when house shopping. Home buying is an emotional roller coaster in the best of times, and inventory is tight. There were over 30 offers on the house that we bought, and we couldn’t sleep until our offer was finally accepted. I’m not interested in the buy vs. rent debate, as there are too many personal and local variables for there to be a single answer. If I was in the market right now, I’d have all my ducks are in a row – mortgage pre-approval, downpayment documentation, income documentation, clean and orderly bank statements, and so on.
Don’t worry about the stock market going up another 10%. Don’t worry about inflation. Worry that messing around with your downpayment will somehow impair your ability to buy the home that you want. If earning zero interest bothers you, check out my
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