Hey dad, I just bought a house.
How can you afford a house on a $5 allowance?
I got an adjustable rate mortgage. The lender said a $5 down payment would be just fine.
Can I borrow five bucks?
Nope. Give me one good reason why not.
I'll give you five:
<ul>
<li>In five years, that initial rate adjusts. You can't afford it? Goodbye house.</li>
<li>In five years, your credit deteriorates. We'll refinance for you. Goodbye house.</li>
<li>Or in five years, you choose to refinance. They ask for two to 5% of closing costs on the new loan. You can't afford it. Goodbye house.</li>
<li>Or in five years, the housing market tanks like it did in '08 and your house won't even be worth the little equity that you've built. Goodbye house.</li>
<li>Goodbye credit. Goodbye future home ownership.</li>
</ul>
But if rates go down, we are literally in a rising rate environment with a potential housing bubble looming because of free money for the past decade.
We have no sign in any of the data that there's been any inflation relief or that the Fed is gonna let its foot off the gas as far as tightening policy.
Well, you're no fun.
They don't pay me the big bucks to be fun.

Learn the implications of adjustable rate mortgages and the potential risks of home ownership with minimal down payments. A comprehensive guide to navigating the housing market.