I have sold everything except the 401k and the house. I've been putting 100% of my money paying down my mortgage and will continue to do so until it is gone. IMO stock markets won't recover with high mortgage rates looming over folks. Stock market can't beat a guaranteed 7% return.
You have a 7% mortgage rate. Jesus Christ. Yes pay it down asap.
Why do you have a 7% mortgage rate? Speaking as somebody with a 7.5% mortgage rate on an investment property, I will refinance as soon as it makes sense. I personally did it because I thought rates were going to continue to rise (which they have) and wanted to lock in a specific property.
I think you mean buying houses and getting a 7% interest mortgage. The reason is that home prices are low when interest rates are high, and so buyers can choose to refinance later when the interest rates go down. I can’t predict the future so can’t tell you whether it works out profitable in the next few years, but chances are high that it will be profitable in the long term.
So you’re doing all this cause you were dum enough to buy w a 7% mortgage. Got it 🫡
Or smart enough when prices are low— however you see it!
No one is buying a house right now except foreign investors who can get cheap money, for example china still has low as fuck loan
Checkout real estate activities! It has pickup
Get off Blind and refinance
There's gotta be a balance imo to some extent. The likelihood of being able to refi to a lower rate sooner then later has to be pretty high if you're at 7%. Refi to lower rate, ideally a no cost refi. Continue payment from higher rate. Toss extra funds to something else, maybe that's continuing a pay down or stocks or whatever
Because you can still find deals that cash flow, and you’ll be able to refinance when rates come down. Tbh though, creative financing solutions and private lenders are the best options right now
OP taking about paying down a primary mortgage
You cant find deals unless you are in middle of nowhere where cash flow is trash low
People are funny. Pretty sure when my parents bought their first house their mortgage rate was 14%. Their house value is now 7x and the Nasdaq value is now 33x since that time. Of course they refinanced along the way as mortgage rates dropped. They probably owe more on that house today than they did when they first purchased it.
Anyway my point is, historically stocks do better than real estate and historically 7% mortgage is on the high side, but certainly no where near the highest they’ve ever been.
Real Estate gets leverage and tax advantages that stocks don't. And too many people see their primary home as an investment....when it's more complicated
Well, not everyone has a 7% mortgage rate?
The rest of us have 2.875% 30yr fixed mortgages. We're never touching those 😉
Yeah. I got 2.375% 20 year fixed right before FED increasing rates.