I’m one of those annoying people who feeds french fries to birds near where other people are sitting and I also like to feed trolls, even long-winded, mathematically challenged ones. Are you the artist formerly known as Rather Opinionated a.k.a. the OP of this very thread?
Say you find a nice house in CV tomorrow and get loan for 650K @ 6.25% – your monthly payment is $4,679.25 (assuming 1.25 taxes/insurance and no PMI). If you wait until that same house drops a further 100K you may very well be looking at 8.25% which makes your monthly payment $4,704.88.
Are these the “fundamentals” you bring? The suggestion that you should pay $100,000 more now in order to save $25.63 per month in payments later is quite an interesting investment strategy. Do you realize that it will take 3,902 months of $25.63 in savings to make up for the extra $100k you paid? 325 years.
Give me the $100k discount at 8.25% any day. I’ll invest the $100k in stocks (please point me to the aforementioned stock market blogs).
