sdcellar, I don’t plan to sell this house. So, being under water doesn’t concern me. My mortgage is also cheaper than what I’m paying for rent, so when I do move up, I’ll just rent this place out. If economy gets really really tough, I can easily rent out 3 bedrooms and live there for free, since that would be enough to cover my mortgage. It’s good for me because I get to buy a new place with a lower principal balance. I did move a lot of my cash into my house, but I can easily save that much again in 2-3 years. So it’s no big deal.
Yes, I have considered rates going down some more. It’s not likely, but if it does, I’ll welcome that too. I just don’t think we can stay down at this level for too long, considering longer term average mortgage rates are around 8%.
