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  • February 15, 2007 at 1:28 PM in reply to: Eureka Springs in Escondido #45512
    gnosis
    Participant

    Wait another 2 years to purchase….really. Wait.

    February 15, 2007 at 1:28 PM in reply to: Eureka Springs in Escondido #45511
    gnosis
    Participant

    Wait another 2 years to purchase….really. Wait.

    January 29, 2007 at 5:25 PM in reply to: Re-fi, equity out, buy later? #44365
    gnosis
    Participant

    ANSWERS:

    The devil is in the details. The details that are pertinent in this case are:

    1. What are you going to do with the money in the short term? Park it in a CD?
    YES-

    2. What’s the total amount of loans you’ll have out? $600-700K + current balance?
    180K @ 4.75%X15 YR WITH 40K @ 8.75% HE LOC LOAN (ON PRIMARY HOME)
    130K @ 5.3% X 30 YR SECOND HOME

    3. What’s the rate you’ll qualify for on a cash out refi? Cash out refi’s are usually higher than regular mortgages.
    BOTH LOANS 30 YR FIX @6.3/8 1 POINT FEE (GREAT CREDIT SCORE)

    4. How much time and capital is left on your current mortgages?
    PRIMARY RES. 8 YRS TO PAY OFF APPRAISAL @ 525K
    SECONDARY RES 27 YRS TO PAY OFF APPRASIAL @ 425K

    5. How does your debt load with the refi compare to your current income?
    PRIMARY+ EQUITY LOAN= $2,400.00/MO NOW. WITH REFI=$2,800/MO
    SECOND HOME= $1,100/MO NOW. WITH REFI+ $2,800/MO
    I THINK I WOULD OPT TO USE SOME OF THE BORROWED REFI MONEY TO COVER THE INCREASE IN MORGAGE EXPENSE.

    Other options may include refi-ing one house and using it to completely pay off your primary residence. You still get the tax deduction of the current loan amount, however one house is no longer subject to a loan and mortgage lien.

    January 29, 2007 at 4:34 PM in reply to: Re-fi, equity out, buy later? #44360
    gnosis
    Participant

    Buying something now with it is dicey.

    Exactly!. I would wait either way. Would you Re-fi and wait or wait and re-fi then buy??

    January 29, 2007 at 3:37 PM in reply to: Re-fi, equity out, buy later? #44356
    gnosis
    Participant

    First off, thanks for the comments.
    I can afford to do these 80% LTV’s, but I don’t know if the timing is right. I would wait ( for the bottom of the market)IF the appraisals hold allowing me the current loan amnts, and IF the rates are likely to stay at or near the current numbers. I was researching these two questions and came up with the greater likelyhood that the appraisals will drop as the bubble empties, and the rates will increase as a function of global corrections etc..
    So, if I wait I may not be in a “cash is king” position that I would have otherwise been in. Of course the down side of paying out money on borrowed money sitting somewhere for an extended amt. of time is obvious.
    Please share more thoughts!

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