Skip to main content

Rent vs Buy with Variable Rate Mortgage

Am I crazy?

28, engaged, getting married 2026. Total income $350k a year, maxing 401ks and low 6 figures in taxable investment account.

Our rent right now is $4,500 a month for a 1 bedroom. We signed in 2024. Lease ends May 2026. Expecting our rent to jump to $5,200 for a 1 bedroom in NJ.

Plan is to live in NJ/NYC city life for another 3 to 5 years. Then move to the suburbs.

Right now, I think we can get a 2 bedroom 2 bathroom for $800k to $850k in our area.

With multiple factors, increased SALT deduction with the big beautiful bill, Powell’s term ending in January, our executive branch repeatedly saying rates need to go down, higher supply of homes on the market. I think the next 9 months might be a great time to buy.

Is a variable rate mortgage (3years fixed then adjusted every 6months) crazy? People around me keep saying it’s risky. The variable rate I see is 5.75% vs 6.5% for a 30 year fixed.

Is buying to only live in a 800k apartment in NJ for 3 to 5 years crazy? I would expect to rent out the unit after we move.

TLDR, is a variable rate mortgage risky for a 800k 2 bedroom apartment in NJ?

submitted by /u/Cpachampion
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/1m3u9co/rent_vs_buy_with_variable_rate_mortgage/
Labels:

Comments

Post a Comment

Popular posts from this blog

North Carolina – “One to Buy; Two to Sell”

I realize I will likely have to contact a real estate attorney but also hoping to hear insights and experiences from others! I have a house in NC that I bought by myself in 2009, and paid off, in full, in 2022. I got married in 2023. My spouse and I have not lived in the house as our "marital residence". We have maintained separate residences even after we got married. (That a separate topic!). I am now selling this house. Realtors have told us that my husband has to sign the deed at time of transfer but I am not convinced since the house has not been our marital residence. The realtors like to use the phrase "one to buy; two to sell", which seems like a broad-stroke statement which is not applicable under all circumstances. And of course, the realtors don’t realize the details of my specific circumstances: I purchased and paid for the house in full prior to marriage Only my name is on the deed And most importantly, we have never lived in the house as a marit...
Post a Comment
Read more

Question With Tricon "Pending ID".....

My wife and i, along with 2 other peopl applied to rent a house, and our application says "Approved, Pending ID". Anyone else know what that means? Do we pretty much have the place or are we missing something? submitted by /u/Itskrueger [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1orixqj/question_with_tricon_pending_id/
Post a Comment
Read more

warning about Biggins and Scott Brunswick

his is a general warning for people who use this agency to rent a property. I am going to share a disgusting experience that I had with the above agency. I was new to the rental experience after a marriage breakdown so I answered a add on Real Estate .com and met a guy in Maribyrnong to look over a apartment . He suggested he was not only going to be my roommate, but he also worked at the company in Brunswick. All looked good and myself and a lovely lady moved in to the apartment in late March. Everything was going well ,we were paying our rent and things were moving forward with 3 people coming from different age groups and different upbringings. Then on the 25th of June out of nowhere 3 Breach Notices appeared on my email from my roommate but on Biggins and Scotts letterhead. I was completely surprised and after trying to reason with the sender of these documents, I then decided I had to call his boss the Director of Biggin and Scott in Brunswick. David told me that he was ...
Post a Comment
Read more