Jamie said:
Your mortgage is the same. Your taxes and/or insurance went up
Some people roll the dice and go with an adjustable rate…
Yeah I’ve always thought this was insane. But I’m very risk adverse.
Jamie said:
Your mortgage is the same. Your taxes and/or insurance went up
Some people roll the dice and go with an adjustable rate…
I have 7.5 years left on my 5.125% arm. Gamble gamble baby
@Sam
Risky moves can sometimes pay off, but they definitely add an element of uncertainty!
Jamie said:
Your mortgage is the same. Your taxes and/or insurance went up
Some people roll the dice and go with an adjustable rate…
Or in much of the world, mortgages need to be renewed every ~5 years, so rates go up even with fixed rate mortgages.
I’m in Canada and bought a house in 2020, with an interest rate of 2.49%. I need to renew my mortgage in June 2025, at whatever rate is available.
As far as I know, the US is one of the only countries with fixed rates for the full amortization of a mortgage
Jamie said:
Your mortgage is the same. Your taxes and/or insurance went up
Some people roll the dice and go with an adjustable rate…
Fixed-rate mortgages are all but unheard of outside the US as well – they’re only possible here because of federal government subsidies.
Jamie said:
Your mortgage is the same. Your taxes and/or insurance went up
Some people roll the dice and go with an adjustable rate…
I did that once, then the real estate market crashed and it went down.
Jamie said:
Your mortgage is the same. Your taxes and/or insurance went up
Some people roll the dice and go with an adjustable rate…
Market fluctuations can definitely affect the benefits of different mortgage types.
Jamie said:
Your mortgage is the same. Your taxes and/or insurance went up
Mine decreased after I refinanced at a lower rate.
Jamie said:
Your mortgage is the same. Your taxes and/or insurance went up
Refinancing can be a smart move when rates drop. It’s always good to keep an eye on mortgage rate trends!
Ours went up! … by a whopping $50. Rent increase was usually $100-200+. At least until the increase doesn’t keep pace with the current rent prices and the landlord declines renewing your lease in favor of renting for new, higher market rates (luckily this never happened to us personally but it happens) then you’re on the hook for another round of application fees and deposits that run into the thousands of dollars (this was typically $2-3k with 1 mo rent as deposit, cleaning fees, nonrefundable fees, credit check for more than one adult, pet deposit, etc). and moving fees. So… no. Not the same as rent, thankfully!
@Marlowe
Yup and even $100-200 isn’t a lot most places don’t have rent control they can increase it by whatever, many rentals are built and maintained cheaply, and that’s they frequently change hands for who manages them.
And none of this even factors in being stuck crammed in next to who knows how many people along with their animals, issues, and any guests they invite in
@Avery
Mine went up 500 if I resign my lease this year over 3000 a month and 2020 it was 1395…
Linden said:
@Avery
Mine went up 500 if I resign my lease this year over 3000 a month and 2020 it was 1395…
I gave up on renting after our lease ended, and it was $300 more per month to sign a new one. To rub salt in the wound, they listed the same apartment for $500 less than what I currently paid. I asked them about renting for the listed price, and they said that since I renewed the lease, it would be $300 more per month.
I didn’t want to deal with the back-and-forth, so I settled to buy. One year in, and I still have PTSD about the annual lease renewal process.
@Caden
Yeah I’m so stressed every year. I’d love to relocate and buy but I have kids and the outrageous price increases on everything and rent increases I have nothing for a down payment. I’m just stuck in the cycle now.
@Marlowe
Cost of my new roof is 50% higher than it would have been 10 years ago. Cost of my new driveway was 30% more than it was 10 years ago. Cost my of water is 25% more than it was 10 years ago. Cost of repair services are insane compared to 10 years ago.
Think of all the things you pay for as a homeowner that a renter does not….lawn care, tree trimming, driveway sealing, HVAC repairs/replaxemnt, window replacement, replacement fixtures….the list goes on and on. You need to factor in the increase in these costs as well if you are doing a comparison.
@Kit
If you think that all those costs aren’t built into your rent then boy do I have a bridge to sell you.
Corin said:
@Kit
If you think that all those costs aren’t built into your rent then boy do I have a bridge to sell you.
Just because you include those costs into a rent price doesn’t mean anyone will rent from you. If you paid too much for your house and the costs are too high, the market sets the rent, not the landlord. Charge too high? No one will rent from you and your costs are now astronomical. Charge lower and maybe take a loss? At least you have a tenant. Btw, you said something about selling a bridge?
@Hayden
It’s crucial for landlords to balance the costs with market demands. Overcharging can lead to vacancies, which hurt financially in the long run.
Corin said:
@Kit
If you think that all those costs aren’t built into your rent then boy do I have a bridge to sell you.
Rent prices are indeed influenced by various costs, but market conditions ultimately determine what can realistically be charged.
@Kit
I think the fact that since 2020 my rent went from 1400 to 3000 is more than covering all those repairs for this house along with my 3000 non refundable cleaning deposit, key deposit, and convince fee of 15 bucks a month paying rent online when in fact that’s the only way you can pay rent. I’d rather have a mortage but hey no longer can save for a down payment because you know rent increase next year is higher than income increase. But go off about fixes that should happen every 2 to 3 decades…