$570K for a Mira Mesa house?

[sdcellar]

[quote=asianautica]I would love to see rates shoot up too.[/quote]

Why is that? Do you have a lot of cash at this point, or is it because if things were working correctly, it should mean income increases as well?

[an]

sdcellar, I’m a saver, so rates going up = the interest I earn on my savings will go up. Also, house will crash some more, which mean when I’m ready to move up, my next house will probably be around the price I paid for my current house. I prefer low principle & high rates than the other way around. I was just tossing out the 6-7% out there, with no bases for those #. Who knows what they’ll be in the future, when/if price do drop to the $420k level.

[an]

sdcellar, I’m a saver, so rates going up = the interest I earn on my savings will go up. Also, house will crash some more, which mean when I’m ready to move up, my next house will probably be around the price I paid for my current house. I prefer low principle & high rates than the other way around. I was just tossing out the 6-7% out there, with no bases for those #. Who knows what they’ll be in the future, when/if price do drop to the $420k level.

[an]

sdcellar, I’m a saver, so rates going up = the interest I earn on my savings will go up. Also, house will crash some more, which mean when I’m ready to move up, my next house will probably be around the price I paid for my current house. I prefer low principle & high rates than the other way around. I was just tossing out the 6-7% out there, with no bases for those #. Who knows what they’ll be in the future, when/if price do drop to the $420k level.

[an]

sdcellar, I’m a saver, so rates going up = the interest I earn on my savings will go up. Also, house will crash some more, which mean when I’m ready to move up, my next house will probably be around the price I paid for my current house. I prefer low principle & high rates than the other way around. I was just tossing out the 6-7% out there, with no bases for those #. Who knows what they’ll be in the future, when/if price do drop to the $420k level.

[an]

sdcellar, I’m a saver, so rates going up = the interest I earn on my savings will go up. Also, house will crash some more, which mean when I’m ready to move up, my next house will probably be around the price I paid for my current house. I prefer low principle & high rates than the other way around. I was just tossing out the 6-7% out there, with no bases for those #. Who knows what they’ll be in the future, when/if price do drop to the $420k level.

[sdcellar]

Good on you (being a saver), but haven’t you moved much of your cash into your house? And (if it crashes more as you suggest), won’t you be pretty well under water on your current house? How is that good for you?

I assume you mean a low principal balance. Who wouldn’t like that? This is not a typical situation, however. At least not for most folks. Regardless, one simply cannot ignore opportunity cost, but I see it again and again.

And you’re right, who knows? Have you considered the possibility that interest rates could go down from here? Personally, I’m not a big believer in it, but it could happen. That said, you seem to be a fan of fairly extreme scenarios.

[sdcellar]

Good on you (being a saver), but haven’t you moved much of your cash into your house? And (if it crashes more as you suggest), won’t you be pretty well under water on your current house? How is that good for you?

I assume you mean a low principal balance. Who wouldn’t like that? This is not a typical situation, however. At least not for most folks. Regardless, one simply cannot ignore opportunity cost, but I see it again and again.

And you’re right, who knows? Have you considered the possibility that interest rates could go down from here? Personally, I’m not a big believer in it, but it could happen. That said, you seem to be a fan of fairly extreme scenarios.

[sdcellar]

Good on you (being a saver), but haven’t you moved much of your cash into your house? And (if it crashes more as you suggest), won’t you be pretty well under water on your current house? How is that good for you?

I assume you mean a low principal balance. Who wouldn’t like that? This is not a typical situation, however. At least not for most folks. Regardless, one simply cannot ignore opportunity cost, but I see it again and again.

And you’re right, who knows? Have you considered the possibility that interest rates could go down from here? Personally, I’m not a big believer in it, but it could happen. That said, you seem to be a fan of fairly extreme scenarios.

[sdcellar]

Good on you (being a saver), but haven’t you moved much of your cash into your house? And (if it crashes more as you suggest), won’t you be pretty well under water on your current house? How is that good for you?

I assume you mean a low principal balance. Who wouldn’t like that? This is not a typical situation, however. At least not for most folks. Regardless, one simply cannot ignore opportunity cost, but I see it again and again.

And you’re right, who knows? Have you considered the possibility that interest rates could go down from here? Personally, I’m not a big believer in it, but it could happen. That said, you seem to be a fan of fairly extreme scenarios.

[sdcellar]

Good on you (being a saver), but haven’t you moved much of your cash into your house? And (if it crashes more as you suggest), won’t you be pretty well under water on your current house? How is that good for you?

I assume you mean a low principal balance. Who wouldn’t like that? This is not a typical situation, however. At least not for most folks. Regardless, one simply cannot ignore opportunity cost, but I see it again and again.

And you’re right, who knows? Have you considered the possibility that interest rates could go down from here? Personally, I’m not a big believer in it, but it could happen. That said, you seem to be a fan of fairly extreme scenarios.

[an]

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%.

[an]

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%.

[an]

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%.

[an]

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%.

[Author]

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