[quote=carlsbadworker]Wait a minute. ~$1600/month is not that small. That is $300K loan at 5%. For a 1500sqft house, that’s too much. That just proves TG’s point that Temecula is bad for those who bought at the bubble years. If you instead only have $200K loan and you are able to refine at today’s approaching 4% 30-year fixed with FED’s help, then that’s only $1K per month. You will be able to close-to cash flow at this price. You can move to San Diego and leave this as a rental, and exactly Ren’s point.[/quote]
carlsbadworker, the interest rate for a 30 yr. fix (for prime borrowers) in 2003 was about 5.75% – 6.5%, NOT 5%. This rate did not plummet until 2004.
I understand that $270K may have been “too much” to pay for a 1500 sf house in TV at that time but nobody knew this in 2003. If you asked Pigg agents who were working back then, they will tell you that their buyer-clients back then got loans at the prevailing interest rate at the time and they sold properties for the price they would bear at the time, as their seller-clients instructed them to.
I’ve had mortgages with 12.5% interest and 10.5% interest, all the while having excellent credit. These was the prevailing rates at the time. FWIW, we made a small profit on each at the time of sale :=)
Coulda, woulda, shoulda, CW, the horse has left the gate. Can I just ask you if you bought your own property at or near the bottom of the market and when you bought it, did you think that was the “bottom” at the time?
