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Mephisto, do you live in San Diego or SoCal? When did you buy your house? Do you plan on paying off your mortgage when it resets? Are you making more than 5% interest on your investments? Is it a guaranteed return (NOT in the stock market)? Have you calculated in the cost of the mortgage (fees, etc) when comparing it against the returns you are making with your cash?
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This is getting pretty off topic, so let’s end it here.
But yes, I have lived in San Diego my whole life. I will probably not pay off mortgage as I get better returns elsewhere – and like many here, I’m hoping for significant price drops so I can buy a bigger place – as I’m said, it’s over priced and needs a correction.
Earning more then 5% these days without stocks, etc? Pretty simple, many Checking and Savings accounts pay ~ 5.15%. T-Bills are paying ~6% for Californian’s. And many CD’s are ~6%+ right now as well.
Again, getting off topic though – and these are more financial discussions outside of Real Estate – so this probably isn’t the place to be discussing them.
I believe you proved my initial point though. You saw the words “Interest Only” and immediately assumed I was living above my means – when in fact, I’m not by a large margin.
Not everyone is/has dug themselves into a world of financial ruin. And my original opinions that there are a large # of people anxiously waiting on the sidelines to purchase once prices go back to a more appropriate price range will avoid any 50% immediate price drops – as much as that would be nice!
