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  • Ryan O.

Three Mistakes You Can't Afford To Make

I’m Going To Wait

Wait? For what? Lower interest rates?

Mortgage rates just jumped to 5%. We’re still in a “low” mortgage rate environment, but we’ll probably never see a sub 4% rate again. If you wait, don’t be surprised if mortgage rates jump to 6-7%. A one-to-two percent increase might not seem like a lot. However, say you wanted to purchase a $300,000 condo and you you put 20% down at a 5% interest rate. Your principal payment would be $1,288/month. If you purchased the same condo at a 6% interest rate, would be $1,439/month. At the 6% interest rate, you’ll paying $151 more a month (or $1,812/year) for the same condo.


Renting does not build you wealth. Let’s say you are renting a condo for $2,000/month. That’s $24,000/year that you just contributed to the landlord’s mortgage. If you rented for three years – assuming your rent didn’t go up (which is unlikely) – you would have paid $72,000.

Did you know there are additional tax benefits to owning a home? For example, you can deduct the interest on your mortgage.

If your rent is paying someone's mortgage, why not buy instead?


Let’s take the one-month summer trip to Europe. Let’s lease that new car. Let’s pau hana every night. How about you save and invest your money, stick to a budget, and pay down your debt. If you want to own a home, you have to make it a priority. For many, especially millennials, you might have to make a few finances sacrifices. You can complain all you about how cost of living is high in Honolulu. . Rather than grumbling, it might be better to focus your attention on how you can build your wealth.


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