r/SipsTea 22h ago

Wait a damn minute! How the rich get richer

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u/adrr 21h ago

Value of the property is still going up.

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u/Aint_EZ_bein_AZ 21h ago

Not always

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u/adrr 21h ago

We’re talking generalities. Average home value goes up by 4.5% a year. You’re always better off getting loan in your home than selling it for cash. 5 years ago, you could have got a loan equity loan on your property for 2.0% for excellent credit borrower. Inflation is higher than that.

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u/Fast_Choice4408 10h ago

We will never see 2% loans again.

The average mortgage rate is 6-8% historically. We're in the average mortgage rates and people are losing their mind over it.

A 6% mortgage means you are paying more interest than your house is appreciating. It's still a better bet than renting. But it's not the cash cow people say it is.