Mira Mesa…

[DWCAP]

Id had this whole long post ready for this when you first posted, then my boss’s boss came in with the equilivant of a nucular bomb for my project and droped it on me. Anyways, I closed the window on accident and lost it all. I am lazy, and not gonna retype the whole thing, so here is the gyst.

1) There will always be demand for houses in good neighborhoods with good schools that are close to work. Assuming you are in one, you are correct that your location will help you.

2) The hits taken in MM are for older, smaller, SFR’s on small lots in buisy locations. Those have fallen by 25% or more. Your area has fallen about 10-12% (your numbers), but is also nowhere near a bottom. Hoping for only a 6% drop or so is pie in the sky. If I had to guess, 26% is prob closer to reality, putting your values back to what they were in nominal terms in 2003.

3) Job losses are accelarating, Interest rates are ~6.5, banks are lending even less and still cutting, inflation is higher than in a long time and accelerating, REO’s at unheard of levels, wages are stagnent, Middle class population dynamics are negative (pop outflow). It’ll be alot longer than 1 year before things start to get to the point where a house that hasnt hit bottom yet can start to appreciate.

[bob007]

mira mesa is convenient for qualcomm workers given high gas prices

[bob007]

mira mesa is convenient for qualcomm workers given high gas prices

[bob007]

mira mesa is convenient for qualcomm workers given high gas prices

[bob007]

mira mesa is convenient for qualcomm workers given high gas prices

[bob007]

mira mesa is convenient for qualcomm workers given high gas prices

[fm]

Depends on how you think people will act. Let’s say the household income is 100k, at 20% down (30 yr, 6.5%) a mortgage of about $2200 monthly is doable (~28% of gross income), which leads to a house price around $440k, but if only 10% down then to stay at that monthly mortgage the house would have to be about $390. Basically this is what would be “affordable” with that income at those down payments. It could always go lower of course.

[fm]

Depends on how you think people will act. Let’s say the household income is 100k, at 20% down (30 yr, 6.5%) a mortgage of about $2200 monthly is doable (~28% of gross income), which leads to a house price around $440k, but if only 10% down then to stay at that monthly mortgage the house would have to be about $390. Basically this is what would be “affordable” with that income at those down payments. It could always go lower of course.

[fm]

Depends on how you think people will act. Let’s say the household income is 100k, at 20% down (30 yr, 6.5%) a mortgage of about $2200 monthly is doable (~28% of gross income), which leads to a house price around $440k, but if only 10% down then to stay at that monthly mortgage the house would have to be about $390. Basically this is what would be “affordable” with that income at those down payments. It could always go lower of course.

[fm]

Depends on how you think people will act. Let’s say the household income is 100k, at 20% down (30 yr, 6.5%) a mortgage of about $2200 monthly is doable (~28% of gross income), which leads to a house price around $440k, but if only 10% down then to stay at that monthly mortgage the house would have to be about $390. Basically this is what would be “affordable” with that income at those down payments. It could always go lower of course.

[fm]

Depends on how you think people will act. Let’s say the household income is 100k, at 20% down (30 yr, 6.5%) a mortgage of about $2200 monthly is doable (~28% of gross income), which leads to a house price around $440k, but if only 10% down then to stay at that monthly mortgage the house would have to be about $390. Basically this is what would be “affordable” with that income at those down payments. It could always go lower of course.

[(former)FormerSanDiegan]

92126_guy …
Your 1st is fixed for 5 years, then adjustable. Ever wonder what rate it goes to after 5 years ?
The “margin” and “index” define the rate to which it will adjust. Find your loan documents. You should be really curious as to what your loan rate will reset to since it could mean the difference between losing your home or keeping it.

For example, some adjustable rate loans are tied to the 12-month LIBOR index (that’s the “index”) plus 2.5% (that’s the margin. The current value of this index is about 3.4%. Meaning that a loan based on this index and margin would reset to 3.4% + 2.5% = 5.9%. The LIBOR has varied between 1.2% and 5.8% over the past 5 years and tends to trail short-term treasury rates.

The fact that your 1st is IO for 10-years may buy you some valuable time.

Is the 2nd a fixed rate ? If not, it’s an adjustable at a fairly high margin (prime plus 3.65%). If your second is variable, I would try to concentrate on paying it down first.

Assuming the second is fixed rate, you currently pay 2400 (1st) plus 1100 (2nd) plus taxes and insurance.

If your 1st resets to 7% for example your payment would go up by $50 per month. Not a huge deal. If it resets to 8% your payment will go up by $400 per month (starting to feel some pain, but doable).

[(former)FormerSanDiegan]

92126_guy …
Your 1st is fixed for 5 years, then adjustable. Ever wonder what rate it goes to after 5 years ?
The “margin” and “index” define the rate to which it will adjust. Find your loan documents. You should be really curious as to what your loan rate will reset to since it could mean the difference between losing your home or keeping it.

For example, some adjustable rate loans are tied to the 12-month LIBOR index (that’s the “index”) plus 2.5% (that’s the margin. The current value of this index is about 3.4%. Meaning that a loan based on this index and margin would reset to 3.4% + 2.5% = 5.9%. The LIBOR has varied between 1.2% and 5.8% over the past 5 years and tends to trail short-term treasury rates.

The fact that your 1st is IO for 10-years may buy you some valuable time.

Is the 2nd a fixed rate ? If not, it’s an adjustable at a fairly high margin (prime plus 3.65%). If your second is variable, I would try to concentrate on paying it down first.

Assuming the second is fixed rate, you currently pay 2400 (1st) plus 1100 (2nd) plus taxes and insurance.

If your 1st resets to 7% for example your payment would go up by $50 per month. Not a huge deal. If it resets to 8% your payment will go up by $400 per month (starting to feel some pain, but doable).

[(former)FormerSanDiegan]

92126_guy …
Your 1st is fixed for 5 years, then adjustable. Ever wonder what rate it goes to after 5 years ?
The “margin” and “index” define the rate to which it will adjust. Find your loan documents. You should be really curious as to what your loan rate will reset to since it could mean the difference between losing your home or keeping it.

For example, some adjustable rate loans are tied to the 12-month LIBOR index (that’s the “index”) plus 2.5% (that’s the margin. The current value of this index is about 3.4%. Meaning that a loan based on this index and margin would reset to 3.4% + 2.5% = 5.9%. The LIBOR has varied between 1.2% and 5.8% over the past 5 years and tends to trail short-term treasury rates.

The fact that your 1st is IO for 10-years may buy you some valuable time.

Is the 2nd a fixed rate ? If not, it’s an adjustable at a fairly high margin (prime plus 3.65%). If your second is variable, I would try to concentrate on paying it down first.

Assuming the second is fixed rate, you currently pay 2400 (1st) plus 1100 (2nd) plus taxes and insurance.

If your 1st resets to 7% for example your payment would go up by $50 per month. Not a huge deal. If it resets to 8% your payment will go up by $400 per month (starting to feel some pain, but doable).

[(former)FormerSanDiegan]

92126_guy …
Your 1st is fixed for 5 years, then adjustable. Ever wonder what rate it goes to after 5 years ?
The “margin” and “index” define the rate to which it will adjust. Find your loan documents. You should be really curious as to what your loan rate will reset to since it could mean the difference between losing your home or keeping it.

For example, some adjustable rate loans are tied to the 12-month LIBOR index (that’s the “index”) plus 2.5% (that’s the margin. The current value of this index is about 3.4%. Meaning that a loan based on this index and margin would reset to 3.4% + 2.5% = 5.9%. The LIBOR has varied between 1.2% and 5.8% over the past 5 years and tends to trail short-term treasury rates.

The fact that your 1st is IO for 10-years may buy you some valuable time.

Is the 2nd a fixed rate ? If not, it’s an adjustable at a fairly high margin (prime plus 3.65%). If your second is variable, I would try to concentrate on paying it down first.

Assuming the second is fixed rate, you currently pay 2400 (1st) plus 1100 (2nd) plus taxes and insurance.

If your 1st resets to 7% for example your payment would go up by $50 per month. Not a huge deal. If it resets to 8% your payment will go up by $400 per month (starting to feel some pain, but doable).

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