Sounding like a realtor, we are all excited that the market is seeing
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- Best Prices
- Great Interest Rates
- Super selection
- Outstanding Condition
and so the sales mantra is sung coast to coast..."It's the very best time to buy" Not wanting to be left out of this choir ....our song had the same chorus and lyrics.
We met a young professional man who had recently had a groicwng family and were quickly outgrowing their first home...looking to plan ahead with more bedrooms, a bigger yard...looking at school districts.
Soooo....we began the happy song....waiting for nodding heads in agreement with market conditions and the list of features that the young couple had on their wish list.
WHOOPS !
We asked what the timing would be of their purchase of a new home..."We will buy our next home as soon as this one is paid off.....'
YICKS !!!! Paid off ? How many years will that take ? What will prices and interest rates be when that day comes...are you missing an opportunity by not buying when prices and interest rates are favorable ?
He/She/They who hesitate are.....well.....lost....losing the best opportunity to capitalize on the market.
Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS
I have not heard that one yet. Most of the time buyers who get a 30 year mortgage say 'I will be old by the time this is paid off."
Most people only buy another house AFTER the other one is paid off... when they sell it!
Similar story. Working with a couple who owe NOTHING on their house for sale in Western PA. They are looking to buy about 3 hours away here in the Poconos but don't want to make a purchase contingent on a mortgage that would be right around the mid 3's to low 4's until they sell their house and then can payoff the mortgage.
I'm with Jay * if they HAVE a mortgage on their current home, it IS paid off when that home is SOLD...If they OWE nothing on their current home, when they SELL IT, they will have CASH to buy their new home for CASH with NO MORTGAGE!!
Sometimes doing the math...let's pretend...the interest rate climbs to this...the prices go up to that..(it IS happening !) and then will they be the coulda should buyers that regret not moooving ?
I actually think that paying off a home is a good thing to do before buying another...
your friend in Charlottesville Virginia
I agree with paying it off when you sell it....I have a hard time waiting for a decade to pay it off and hope that things are affordable...we don't suggest bridge loans today !
If one is not upside down (or can handle the negative balance) and has a real need for a bigger house, there is opportunity "in them there listings!"
if you are looking for bigger...or even if you are downsizing to a condo...take two...one north and one south...the whole world...thankfully is not upside down....great time to jump in the market and enjoy the savings !
People pay off houses? LOL
If I waited until my house was paid off I think I would be waiting a long long time...there is always something else that comes up that seem to take precendence on the payments!
WOW...well it just doesn't make sense...even if they had a few years to pay it off...with the interest rates and the prices...you cannot loose but only gain an interest rate below 5%!!!! and low prices. Thanks for sharing, Jen
just keep playing that lottery...bet on the gray horse...wait for Publishers' Clearing House...
I can see it with a car...maybe. But, a house? Really? Did you or are you going to win the lottery?
Hmmm...I just don't get it.
the lottery comment was meant for Kristin who can't see how...like others...people pay off their home in a blink....lottery winners could !
I've never heard of such a thing. Wouldn't you pay it off when you sell it? Sell it and pay it off now instead of making payments and paying interest for however long you still have payments due.
if he waits x years until it is paid off....he will have missed all the "deals of the century" that are out there now !
Hi Sally and David~ I can see it both ways! But, I think it is still smarter to get out of debt first, and then move later! But, that's just me. It makes better financial sense and would easier to sleep at night by being out of debt. Paying cash for things would be nice!
Agreed Vickie...on the other side of things...good to take advantage of building more equity in a house you may need with a growing family while you can get it at a lower price with great interest...the best way is the way it works for you..thanks.