$570K for a Mira Mesa house?

[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%.

[gn]

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.

You seem to forget one thing: if mortgage rate goes up & home prices go down & you lose equity, the lender will require you to have 30% equity in your current house before lending you money to buy another house. Or, you’ll need to have the income to cover the payment on both houses.

[gn]

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.

You seem to forget one thing: if mortgage rate goes up & home prices go down & you lose equity, the lender will require you to have 30% equity in your current house before lending you money to buy another house. Or, you’ll need to have the income to cover the payment on both houses.

[gn]

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.

You seem to forget one thing: if mortgage rate goes up & home prices go down & you lose equity, the lender will require you to have 30% equity in your current house before lending you money to buy another house. Or, you’ll need to have the income to cover the payment on both houses.

[gn]

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.

You seem to forget one thing: if mortgage rate goes up & home prices go down & you lose equity, the lender will require you to have 30% equity in your current house before lending you money to buy another house. Or, you’ll need to have the income to cover the payment on both houses.

[gn]

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.

You seem to forget one thing: if mortgage rate goes up & home prices go down & you lose equity, the lender will require you to have 30% equity in your current house before lending you money to buy another house. Or, you’ll need to have the income to cover the payment on both houses.

[an]

[quote=gn]
You seem to forget one thing: if mortgage rate goes up & home prices go down & you lose equity, the lender will require you to have 30% equity in your current house before lending you money to buy another house. Or, you’ll need to have the income to cover the payment on both houses.[/quote]
I didn’t forget it. The house I bought would cash flow positive today, so, I’m not too concern about it not cash flowing positive 10 years from now. 10 years from now, if rates does sky rocket and price in move up areas (the 600-800k range) drastically drop to 300-400k range, I can very well pay cash for it and refi later if need be.

[an]

[quote=gn]
You seem to forget one thing: if mortgage rate goes up & home prices go down & you lose equity, the lender will require you to have 30% equity in your current house before lending you money to buy another house. Or, you’ll need to have the income to cover the payment on both houses.[/quote]
I didn’t forget it. The house I bought would cash flow positive today, so, I’m not too concern about it not cash flowing positive 10 years from now. 10 years from now, if rates does sky rocket and price in move up areas (the 600-800k range) drastically drop to 300-400k range, I can very well pay cash for it and refi later if need be.

[an]

[quote=gn]
You seem to forget one thing: if mortgage rate goes up & home prices go down & you lose equity, the lender will require you to have 30% equity in your current house before lending you money to buy another house. Or, you’ll need to have the income to cover the payment on both houses.[/quote]
I didn’t forget it. The house I bought would cash flow positive today, so, I’m not too concern about it not cash flowing positive 10 years from now. 10 years from now, if rates does sky rocket and price in move up areas (the 600-800k range) drastically drop to 300-400k range, I can very well pay cash for it and refi later if need be.

[an]

[quote=gn]
You seem to forget one thing: if mortgage rate goes up & home prices go down & you lose equity, the lender will require you to have 30% equity in your current house before lending you money to buy another house. Or, you’ll need to have the income to cover the payment on both houses.[/quote]
I didn’t forget it. The house I bought would cash flow positive today, so, I’m not too concern about it not cash flowing positive 10 years from now. 10 years from now, if rates does sky rocket and price in move up areas (the 600-800k range) drastically drop to 300-400k range, I can very well pay cash for it and refi later if need be.

[an]

[quote=gn]
You seem to forget one thing: if mortgage rate goes up & home prices go down & you lose equity, the lender will require you to have 30% equity in your current house before lending you money to buy another house. Or, you’ll need to have the income to cover the payment on both houses.[/quote]
I didn’t forget it. The house I bought would cash flow positive today, so, I’m not too concern about it not cash flowing positive 10 years from now. 10 years from now, if rates does sky rocket and price in move up areas (the 600-800k range) drastically drop to 300-400k range, I can very well pay cash for it and refi later if need be.

[Author]

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