Should I buy a house even with higher interest rates?
washingtonblade.comShould you buy a house despite higher interest rates? Well, that depends on where you want to put your money. If you are paying rent, let’s say even $2,000 a month, that comes out to be about $24,000 for an entire year.
If you live in that apartment for three years and the rent doesn’t go up each year, that is $72,000. If there is a $350,000 condo for sale that you have your eye on, but the interest rate is higher, like 6%, yes, your monthly payment will be higher than it was had you locked in a 2.9% interest rate like some people did last year or the year before.
But at the end of the day, do you ever get that rent check back? No, you don’t. Even with a higher interest rate, if you live somewhere for three or four years and then sell it, you are going to get some of that money you are paying toward your mortgage back.
It’s what we call “equity.” Yes, most of your payment at first goes toward interest, but you can also get tax deductions from your mortgage payment.
