[23109VC]

My mortgage right now is it 5 1/4 so anything I refi into is will be better than what I currently have!

With all of this volatility I’m wondering if in the near future housing prices are going to take a big crash and I’d be wise to refinance now.

I probably have a couple hundred thousand in equity so I’m not at risk of having a bad loan to value even with a little bit of cash out.

I’m curious what you guys think about if real estate prices are going to take a big hit and how quickly that’s going to happen.

[23109VC]

when you say “no costs”… literally they just refi’d the loan with no costs? there has to be some kind of fees you’re paying?

I have just started calling around and shopping rates for a refi, and I had expected that I would have to pay something to do a refi.

when you say “no costs” do you mean no out of pocket or you mean you literally aren’t incurring any additional fees even rolled into the loan?

thanks.

[23109VC]

where do you guys think rates will go? I am going to refi – I missed the massive low price a couple weeks back.. rates now are still low and much lower than what I have now, but I’m wondering if rates will back down.

I read online that the fed will start buying MBS’s… and while I don’t really fully get why that will impact rates, I’m reading that rates will go back down because of it.

what do you all think? I can refi now or I can wait afew weeks. I”m not in a rush but want to do it.

i’m currently in a 30 year fixed at 5.25. I was told I can refi now at 3.75 for another 30 or 3.25 for a 15.

my mortage balance is about $260k, on a house worth about $500.

if I take cash out the rates go up substantially.

thanks

[23109VC]

thanks to everyone for all the comments and suggestions. I am the OP and yes, I was here back before the crash looking for advice, and I got it, but didn’t take it. Then I bought in Temecula and a year later my house went underwater.. 🙁

Well, fast forward a decade, and diligent payments, and increased income and my house is not all the way paid off but getting there. We have fixed it up along the way, and while it’s getting small for our growing family, it is a nice place to live and I like it. I work locally, so my commute is about 10 minutes. Some days I come home for lunch. I can’t complain.

My wife and I, however, really would like to move back to SAn Diego. We both grew up there, we have family there ,and ideally, when I am retired, that’s where I would like to be. if I can get there sooner, that woujdl be better. My wife really wants to be there, and I want to make her happy.

I’m not in as much of a rush to get there as I still work here, but I am planning on leaving my job in about 3 years. I’ll be able to pull a decent retirement from work and then open up my own business.I would probably be taking on work in both Riverside and San Diego, and could live in either county and make things work.

To me, it is unfortuante we have become accustomed to the housing market in Temecula, where a $500k house is actually quite nice.
then when you see what that gets you in San Diego, it’s some dump in a crummy looking neighborhood…relative to what you would get up here.

I’m starting to think that I’d probably need to spend upwards of $850-$1,000,000 to get a house in san Diego I would honestly like. I have not crunched the numbers to see if that is a realistic price point. My household income is good and debt is low, but I also don’t want to be house poor again.

All of live is a compromise..and moving back to San Diego might mean moving into a smaller place, or an older place. I had simply thought that if the market were to drop this year or next – as some experts have predicted – that might be the only real way to move from Temecula to a comparable San Diego home.

I had read a lot of stuff online predicting housing prices to fall in 2019 or 2020, which got me thinking what if I sold my current house, pocketed my equity, and then either rented a cheap house in Temecula for the next year or move in with mom and pocket more money.

Sounds like a lot of you are not optimistic that prices will drop – at least not like they did last time around.

I would assume if prices do drop, they will drop a lot more in Temecula than San Diego… and my equity would be much less here if I still own a home.

my house here is probably about $450k if I sold it, and I owe under $250k on it. I could rent it for probably $2200-2300/month if I were to rent. But if I rent it, I would have no money for a downpayment on the next house.

we toyed with the idea of renting. half the people say how great their rental worked out, and I have friends who have told me HORROR stories of tenants from hell – which has pretty much convinced me that we will sell and move our equity to the next house and not try to find way to keep this house as an investment. Feel free to tell me if I am wrong/right on that one..but if I move to SD I don’t see how I do it unless I bring every drop of equity I have.

I do appreciate all the info and suggestions. Thanks to everyone who chimed in and I’m open to any other suggestions or words of wisdom. I’m all ears. 🙂

[23109VC]

if you are willing to go north to an area like Temecula, for that money, you could well exceed your requirements… and the schools are good.

750k in Temecula…in THIS market would get you in something AMAZING. it would make those Carmel Valley homes look like cheap condos…

[23109VC]

if you are willing to go north to an area like Temecula, for that money, you could well exceed your requirements… and the schools are good.

750k in Temecula…in THIS market would get you in something AMAZING. it would make those Carmel Valley homes look like cheap condos…

[23109VC]

if you are willing to go north to an area like Temecula, for that money, you could well exceed your requirements… and the schools are good.

750k in Temecula…in THIS market would get you in something AMAZING. it would make those Carmel Valley homes look like cheap condos…

[23109VC]

if you are willing to go north to an area like Temecula, for that money, you could well exceed your requirements… and the schools are good.

750k in Temecula…in THIS market would get you in something AMAZING. it would make those Carmel Valley homes look like cheap condos…

[23109VC]

if you are willing to go north to an area like Temecula, for that money, you could well exceed your requirements… and the schools are good.

750k in Temecula…in THIS market would get you in something AMAZING. it would make those Carmel Valley homes look like cheap condos…

[23109VC]

the first gave me 5% for the life of the laon. they also converted it from 30 years to 40 years. standard P&I loan. i have it in writing. it did NOT go to recourse.

the second, USAA, has said that nothign is in writing. it is not a refi, it is not a modification. they just temporarily change the rate as a courtesy due to my recent financial hardship.

[23109VC]

the first gave me 5% for the life of the laon. they also converted it from 30 years to 40 years. standard P&I loan. i have it in writing. it did NOT go to recourse.

the second, USAA, has said that nothign is in writing. it is not a refi, it is not a modification. they just temporarily change the rate as a courtesy due to my recent financial hardship.

[23109VC]

the first gave me 5% for the life of the laon. they also converted it from 30 years to 40 years. standard P&I loan. i have it in writing. it did NOT go to recourse.

the second, USAA, has said that nothign is in writing. it is not a refi, it is not a modification. they just temporarily change the rate as a courtesy due to my recent financial hardship.

[23109VC]

the first gave me 5% for the life of the laon. they also converted it from 30 years to 40 years. standard P&I loan. i have it in writing. it did NOT go to recourse.

the second, USAA, has said that nothign is in writing. it is not a refi, it is not a modification. they just temporarily change the rate as a courtesy due to my recent financial hardship.

[23109VC]

the first gave me 5% for the life of the laon. they also converted it from 30 years to 40 years. standard P&I loan. i have it in writing. it did NOT go to recourse.

the second, USAA, has said that nothign is in writing. it is not a refi, it is not a modification. they just temporarily change the rate as a courtesy due to my recent financial hardship.

[23109VC]

you are SO right about USAA. One of the HUGE reasons why I am VERY reluctant to go the “stop paying” and just try to screw USAA is b/c they are such a good company, and I want to be a loyal customer. Most banks are just pricks…they just want to screw you, they play games with you..I moved ALL my banking and insurance to USAA b/c they have been so good. I am not military, but got into USAA b/c a relative was. USAA is the BEST insurance company I have ever dealth with. they are honest, they bend over backward to be nice to you..and it pains me to think that screwing them might be the best financial route to take.

in an era where most customers have no loyalty to their banks…and I honestly don’t care about any of the other banks I’ve had b/c I KNOW they didn’t care about me… USAA does honestly seem to care. while they aren’t giving me a free lunch on my second…they are VERY good to me on my other policies…and part of me knows that if I have to sswithc my life ins, car ins, etc..I likely will pay at least a couple hundred more a month to get similar quality service..which might just offeset any real gain my dumping the second.

boht my wife and I agree on this.

we will likley just suck up the deal USAA recently offered us to temporarily adjust our second. which saves us another $150/month.

overall, with this final concession, my monthly nut for a 1900 sq ft home in a nice part of Temeecula is about $2500. i’ll have to do the math, but my guess is i save roughly 500/month on taxes by owning vs renting. i’ll update in this thread if I find that my math is way off.

that means I”m paying 2000/month actual costs…which is what it would cost to rent this home. and i don’t have the hassle of worrying that some landlord will stop paying and i’ll be forced to move.

both my wife and I have discussed that very real possibility shoudl we opt to walk and go the route of renting..and neither of us wants to dealt with that. with small kids…moving is even more of a PITA than it already is.

we have some plans to convert half the garage into a playroom. not anyting $$ like walls,flooring. i’m talking about maybe some upgraded storage so anyting unsafe like chemicals and yard tools are out of reach..and then putting in some sof rubber mats and hooking up the spare TV. kids can have all their toys out there…in so cal the garage is never too hot or cold… our oldest boy is actually excited about the idea of abunk bed and the two boys can share their room.

we have 3…not four kids. 2 boys one girl. teh boys can share. little princess gets her eown room. everyting else is perfectly fine.

it is aggravating to see people get bigger hosues for less. soemtiems I wish i had been one of “them” and bought that 750k house in temecula..but i was one of the people that inteiontally only bought what i was comfortable affording..rather than biting off more than i coudl chew..and now it pisses me off to see the idiots who bought 750k houses on income less than mine..get gov’t bailouts to keep their fancy homes. i’m struggling to fit in mine and make my payemtn after some work furloughs..and the ding dongs that just did an option arm and bought 10x what they shoudl ahve, get to stay. it’s not right.

oh well. i can’t complain too much. i always try to look on the bright side. i have a great family, a good job. everyone is healthy. i have a pretty wife. a few nice cars. i’m not rich, but i know people who are doing way worse or have had really hard times or really difficult circumstances land in their lap. one family member recently got cancer…he would gladly trade any house for just his health…. so in the BIG scheme of life…i’ve got it pretty good and i’m really jsut bickering over peripheral things that don’t really mean a lot. it’s nice to have the “perfect’ hosue with every room just how youw ant it, but boy could things be a LOT worse.

i do appreciate all the advice i’ve received here…now and in the past. one thing for sure, the next time i think about a hoem pruchase, i’m coming here and i amgoing to listen to what i hear. there are some very SMART “in the know” people on this site.

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