San Diego Housing Market News and Analysis
Future housing purchase - trading up when rates are higher?
User Forum Topic
Submitted by matt-waiting on July 31, 2012 - 5:24pm
What will happen when all these first time buyers who are locking in super low interest rates want to sell and buy a larger home when rates are significantly higher? Will they have to bite the bullet and pay off their 3.5% loan only to take out a larger loan at 6,7,8 percent?
Say for example, right now I have a smallish house at a fixed rate of 3.5%, but in a few years want to "move up," sell, and buy a bigger house. I am guessing when that time comes, rates will be much higher. Any way around this? If not, doesn't this create a disincentive for more expensive real estate purchases in the future? ...
Will I be stuck in my 2 bedroom house with my 5 kids and 2 baby mamas because I refuse to pay off a 3.5% loan?
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