So far, you have always lived in someone else's house. First, you lived with Mom and Dad. "As long as you are living under my roof, you will follow my rules!" Remember that?
Then you became independent, went to school, then joined the full time workforce. You moved from Mom and Dad's place to a dorm to an apartment. How was your independence and adulthood welcomed? "As long as you live under my roof, you will follow my rules!" Kind of nostalgic, isn't it? That's no way for an adult to live. Even the government knows that it's time for you to take off the training wheels. They're offering a bonus to anyone who fires their landlord and gets their own place. Washington is offering you a dollar an hour, every hour 24/7 for the first 333 days you live in your new home, just for telling your landlord that you don't care if he says you can't have a Golden Retriever, you're getting one anyway.
We have often heard that patience is a virtue. Sure it is, I guess. You want to leave the training wheels on another year because it looks like home prices are still dropping. Well, maybe you're right. Chances are that interest rates are going to go up over the next year.
By doing a little figuring, it looks to me that, if interest rates go up just one percent, you had better hope that home prices go down by at around ten percent. To get about the same principal and interest payment, that's about what it will take. Of course, there may not be a landlord firing bonus next year.
I'm not a great fortune teller, but it sure looks like mortgage rate increases are at least as good a bet as home price decreases, maybe even better. Waiting is probably not a great strategy. Today is the perfect day to fire your landlord. Need help? Call me now 612-916-3033.
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