Rent vs Buy in the Era of High Mortgage Rates

New houses are also selling well. Builders often offer lower mortgage rate as incentives. Too bad there aren’t many new builds in the Bay Area.

Guess what you were totally wrong

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Austin rent dropped 14% YoY in April.

They are up everywhere. It is too soon to tell if it is a trend or an aberration. Maybe it is just seasonal.

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Builder comments. Bay Area is “steady” and Austin is “unpredictable”.



Are you ready for 7% mortgage rate again?


Just signed my hard money loan :sob:


What happen after 12 months?

Ballon payment.

Planning to finish before 12 months and refi to commercial mortgage.

If not, ask for extension or refi with another HML

It’s my first time using HML. I don’t know what I’m doing. :laughing:

You guys are the RE pros.


9% for hard money is pretty good when 30 year fixed is at 7%.


What is I/O in 8.99% rate (I/O)?

Interests only?



I see.

Given that you are only going to borrow for a year or less, the 2.75% + $1595 fee are basically part of interest too.

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Total cost of the one year loan is $118,995 almost 12%.

Beggars can’t be choosers. The lender won’t budge on the processing fee but my broker will reimburse me out of their fee. Better than nothing. :man_shrugging:t2:

If you guys want to do it at straight 9%, I’ll be happy to take it. :laughing:

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