• jordanlund@lemmy.world
    link
    fedilink
    arrow-up
    29
    arrow-down
    2
    ·
    1 year ago

    I banked enough cash WFH to buy a house in October of '21 and got a 3.25% fixed. There are 28 years remaining with a $2,000 a month monthly payment.

    Why would I give that up? What’s the incentive to take a higher interest rate and a higher monthly payment? There really isn’t one.

    • haventbeenlistening@lemmy.world
      link
      fedilink
      arrow-up
      5
      arrow-down
      3
      ·
      1 year ago

      The article isn’t suggesting that home owners should shoot themselves in the foot by giving up their great fixed rates. They are saying that the incentives are backwards and the system is unfair.

      People are less likely to move right now and those who need to buy right now are punished for it. A system that was more fair would spread the pain of high inflation to everyone and even make combating runaway inflation easier. At the moment, the high rates have basically no impact on those (like you and me) who were lucky enough to buy or refi in 2021.

      • stolid_agnostic@lemmy.ml
        link
        fedilink
        arrow-up
        3
        ·
        1 year ago

        I’m not really sure why people took exception with your comment. It’s very strange. I actually think that the first person didn’t understand and downvoted, then monkeys kept clicking buttons.

      • Earthwormjim91@lemmy.world
        link
        fedilink
        arrow-up
        3
        arrow-down
        5
        ·
        1 year ago

        Wah wah wah. Yeah it sucks for some people that need to buy right now. I’m in the process of it and the first few years are gonna suck because of the interest. No reason to cry about someone else getting in earlier with a lower rate.

        Rates go up and down. When they do, people that bought at high rates refinance down to a lower rate.

        • haventbeenlistening@lemmy.world
          link
          fedilink
          arrow-up
          5
          ·
          1 year ago

          Dude, I have no idea what gave you the impression that I was confused about any of what you just said.

          The commenter above me struggled to understand the article and thought that the author was trying to convince individuals to abandon their existing mortgages or to stop refinancing them when lower rates justify the cost of doing so.