I've been at my current job for over a year now and it's got solid pay ~$60k/yr. I've still been bumming it at my parents with the goal moving out by buying my own place - likely with a friend who'd pay me rent.
However, with the housing market as it is with 8% interest rates and low supply it seems I'm stuck kicking back with my parents again.
At the same time, I feel like I'm stunting my development as I'd held off any serious relationships until I have my own place.
Renting doesn't seem ideal unless my parents kick me out (unlikely, we all get along and I pull my weight) as I just see it as lighting money on fire I could be saving for an actual house.
ATM I'm thinking of bitting the bullet for inflated interest rates as I'm in a good place financially (I have zero debt) but it does make me concerned that the “you will own nothing” seems less and less like a conspiracy theory for the Zoomer generation.
Is this r-slurred? What is the best move here?
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Tbh buying a first house with these interest rates wouldn't be ideal. You could get an adjustable rate mortgage with a plan to refinance to a (hopefully) lower fixed rate in a few years but that has some risks. Savemaxxing at home kinda sucks too if you want to be social but it's either that or get an apartment.
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Yeah I can't really get a handle on how dire 8% is and how I should approach that.
Do you think it would be misguided to use an IRA I have to help with the down payment?
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It's really dire. Rates haven't been this high in like 20 years. Most people with outstanding mortgages right now have interest rates at like 3-4% (or possibly lower if they financed during covid).
Can you take it out as a loan that you pay back to yourself with interest? That's pretty common, I did that with my 401k when I bought my first house. You lose out on some potential gains but it's basically "free money" if the only interest you're paying is to yourself.
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My understanding is it's penalty free if it's used for a mortgage but I'm still learning financial rules and such.
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