House hacking with a high interest rate

[Codey Wendel]

Hello everyone. I just started the mortgage application process and have been pre-approved for a loan with a 6.75% interest rate. I was planning on purchasing a duplex this summer and going the FHA route, but now am not sure if it's the right decision with how high interest rates are. My price range is 200-250k and my total interest paid when it's all said and done will exceed the purchase price. I don't want to sit around waiting for interest rates to drop and pass on some good opportunities, but I'm also not sure if I want to pay that much in interest.

Does anyone have any opinions on this? Would refinancing a few years after purchasing make my numbers look better? 

Thank you in advance.

[Philip Polski]

In my opinion this is a simple question. Compare your cost of ownership with the cost to rent. If you factor in house hacking it's a no brainer. Your tenant will pay most of part of your mortgage. 

I wouldn't plan on interest rates going down much, act on what important now. Trying to time the market typically leads to 

. If purchasing is a long term decision then you will be just fine. 10 years from now you will be way ahead. 

Don't over think this, you can always rent both sides later and buy another one.