Reply to How much did you pay for your house? What is you HHI?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Paid $950K in 2024 with 20% down so mortgage is $750K or so. HHI $700-800K. $6K PITI due to 7% interest rate despite mortgage principal being under our annual HHI : ) [/quote]

why not refinance?  or just pay cash?  that feels crazy to me!  our HHI is less than half of that and paid 870k in 2020 and refinanced to 2.35 6 months after buying.  our PITI is $3600 for a house very similar in cost to yours (currently valued at 1.3).  if i had that sort of mortgage and income i'd pay it off! [/quote]

A couple reasons in case helpful for others:

- Refinance rates haven’t dropped below 6.5% since when we bought except for a few days here and there and each time we haven’t been fast enough to catch it. And to be fair, the lowest we’ve seen for refinance is 6% - which traditional refinance math would tell you still isn’t worth it to refinance from 7% to that.

- We’re saving/investing $300K or more annually and index funds dramatically outperform real estate in the long run so it makes since to load up our investments to take advantage of compounding (we’re early 30s so have a long road of appreciation ahead of us). If we were in our 50s or 60s we’d probably pull the cash to pay it off entirely but right now our money is working MUCH harder for us in the market even with a 7% mortgage rate. When you do the math on 10 year ROI between $750K in VOO vs our house in N Arlington it’s not even in the same universe. [/quote]

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