re: Interest rates buying house

quote:

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Explain that to me like I’m stupid and naive

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Apply for an FHA loan. Any realtor or broker will know what this. You only have to put down 3.5% and they have very competitive rates. Do something else (stock market) with the rest of the money you were going to use for the down payment.

Personally, as someone who has done this, I wouldn’t do it unless you’re planning on staying there for 10+ years. It takes forever to build any equity when you put so little down. But, I was young and getting married and in we need to buy a house mode because the rental houses were shitty. I also didn’t have much of a cushion so that’s part of why it felt like hell catching up.

If it’s your forever home then FHA and putting the rest of the down payment to work in the market isn’t a bad idea at all, but if it’s a first home or a bridge to your forever home, it’s not all that great.

Just one guy’s opinion.