Quote:
Originally Posted by Traum
For who are able to withstand that kind of massive increases to their payments -- kudos to them for being so baller. Personally, if I were in that situation, I would have just downsized LOL~
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Downsizing can hurt even more than cutting all other expenses/savings/picking up a PT job/gig/airbnb a room and trying to scrape together another $2-3k/month. Once you include the loss of equity from the drop in price + selling commissions + fees and then eventual fees + taxes to buy again you could be out a few hundred thousand.
I have a friend who is in this exact situation. Bought early 2022 and has lost ~$200k in equity. Selling and buying in the future would cost them another $75k in commissions/taxes/fees + rent ($2k/mo minimum).
Instead, they've decided to rent out a bedroom or 2 in their basement to help cover the gap.