These are two independent decisions. I agree prices will come down significantly. My comment on the other thread was recoginizing that loan as a very good loan. No principal payment for 10 years, 6.1% APR FIXED for 40 years, no PMI -is basically free money. I hope he uses that money to buy a home that has already fallen enough to make it worth buying. Many good Temecula homes are now going for $100-$150 per SQFT. Combine that price and a really cheap very long term Fixed mortgage without PMI/HOA/Mello-Roos burden is a guaranteed winning combination. 40 years from now, in 2047, the boomer entitlement tsunami would have passed. $ would be worth less than todays dime – more like a nickel – in purchasing power. For him to payback loan with that funny money will be trivial. His grandkids will be getting more for allowance!
