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SD Realtor
Participantflyer I do… Lots of old money in PL. Also alot of people that got in at Liberty Station got smoking deals.. Liberty has come down at a slow pace. Unfortunately yeah I think PL is going to crawl down slowly.
SD Realtor
Participantflyer I do… Lots of old money in PL. Also alot of people that got in at Liberty Station got smoking deals.. Liberty has come down at a slow pace. Unfortunately yeah I think PL is going to crawl down slowly.
SD Realtor
ParticipantNostra I need clarification, not sure what post you are referring to.
What does happen regularly is we get posts here or someone emails me where someone saw something on Zillow, Trulia or SDLookup or an equivalent and they thought it was a sale or one of these sites said that there was a sale. Then when I look in the tax roll, it was simply the trustee sale, not a sale to a private party.
SD Realtor
ps 5171 Gardena went pending today. It is subject to short sale approval but the fact that is in pending status means they did get approval from the lender. When it closes we will see what they got.
ParticipantNostra I need clarification, not sure what post you are referring to.
What does happen regularly is we get posts here or someone emails me where someone saw something on Zillow, Trulia or SDLookup or an equivalent and they thought it was a sale or one of these sites said that there was a sale. Then when I look in the tax roll, it was simply the trustee sale, not a sale to a private party.
SD Realtor
ps 5171 Gardena went pending today. It is subject to short sale approval but the fact that is in pending status means they did get approval from the lender. When it closes we will see what they got.
ParticipantNostra I need clarification, not sure what post you are referring to.
What does happen regularly is we get posts here or someone emails me where someone saw something on Zillow, Trulia or SDLookup or an equivalent and they thought it was a sale or one of these sites said that there was a sale. Then when I look in the tax roll, it was simply the trustee sale, not a sale to a private party.
SD Realtor
ps 5171 Gardena went pending today. It is subject to short sale approval but the fact that is in pending status means they did get approval from the lender. When it closes we will see what they got.
ParticipantNostra I need clarification, not sure what post you are referring to.
What does happen regularly is we get posts here or someone emails me where someone saw something on Zillow, Trulia or SDLookup or an equivalent and they thought it was a sale or one of these sites said that there was a sale. Then when I look in the tax roll, it was simply the trustee sale, not a sale to a private party.
SD Realtor
ps 5171 Gardena went pending today. It is subject to short sale approval but the fact that is in pending status means they did get approval from the lender. When it closes we will see what they got.
ParticipantNostra I need clarification, not sure what post you are referring to.
What does happen regularly is we get posts here or someone emails me where someone saw something on Zillow, Trulia or SDLookup or an equivalent and they thought it was a sale or one of these sites said that there was a sale. Then when I look in the tax roll, it was simply the trustee sale, not a sale to a private party.
SD Realtor
ps 5171 Gardena went pending today. It is subject to short sale approval but the fact that is in pending status means they did get approval from the lender. When it closes we will see what they got.
ParticipantYour analysis is pretty correct especially about Point Loma. I have three different buyers who are looking in the areas you mentioned. Two in the Pt Loma area, the other one in a sprinkling of areas including Del Cerro and Mt Helix. The denial in Pt Loma runs deep and wide. Same with the other two areas but not quite as bad. Right now in each of the areas we are actually coming off of a seasonal lower point inventory wise as inventory traditionally bottoms out in the December/January timeframe and then starts to ramp up again. You will need patience in these areas but let’s see how things look in the summer. I don’t envision huge chunks down (a la perhaps 2010) but I do believe you will see a few price reductions once realizations hit some of these sellers.
Just try to exercise patience.
SD Realtor
ParticipantYour analysis is pretty correct especially about Point Loma. I have three different buyers who are looking in the areas you mentioned. Two in the Pt Loma area, the other one in a sprinkling of areas including Del Cerro and Mt Helix. The denial in Pt Loma runs deep and wide. Same with the other two areas but not quite as bad. Right now in each of the areas we are actually coming off of a seasonal lower point inventory wise as inventory traditionally bottoms out in the December/January timeframe and then starts to ramp up again. You will need patience in these areas but let’s see how things look in the summer. I don’t envision huge chunks down (a la perhaps 2010) but I do believe you will see a few price reductions once realizations hit some of these sellers.
Just try to exercise patience.
SD Realtor
ParticipantYour analysis is pretty correct especially about Point Loma. I have three different buyers who are looking in the areas you mentioned. Two in the Pt Loma area, the other one in a sprinkling of areas including Del Cerro and Mt Helix. The denial in Pt Loma runs deep and wide. Same with the other two areas but not quite as bad. Right now in each of the areas we are actually coming off of a seasonal lower point inventory wise as inventory traditionally bottoms out in the December/January timeframe and then starts to ramp up again. You will need patience in these areas but let’s see how things look in the summer. I don’t envision huge chunks down (a la perhaps 2010) but I do believe you will see a few price reductions once realizations hit some of these sellers.
Just try to exercise patience.
SD Realtor
ParticipantYour analysis is pretty correct especially about Point Loma. I have three different buyers who are looking in the areas you mentioned. Two in the Pt Loma area, the other one in a sprinkling of areas including Del Cerro and Mt Helix. The denial in Pt Loma runs deep and wide. Same with the other two areas but not quite as bad. Right now in each of the areas we are actually coming off of a seasonal lower point inventory wise as inventory traditionally bottoms out in the December/January timeframe and then starts to ramp up again. You will need patience in these areas but let’s see how things look in the summer. I don’t envision huge chunks down (a la perhaps 2010) but I do believe you will see a few price reductions once realizations hit some of these sellers.
Just try to exercise patience.
SD Realtor
ParticipantYour analysis is pretty correct especially about Point Loma. I have three different buyers who are looking in the areas you mentioned. Two in the Pt Loma area, the other one in a sprinkling of areas including Del Cerro and Mt Helix. The denial in Pt Loma runs deep and wide. Same with the other two areas but not quite as bad. Right now in each of the areas we are actually coming off of a seasonal lower point inventory wise as inventory traditionally bottoms out in the December/January timeframe and then starts to ramp up again. You will need patience in these areas but let’s see how things look in the summer. I don’t envision huge chunks down (a la perhaps 2010) but I do believe you will see a few price reductions once realizations hit some of these sellers.
Just try to exercise patience.
SD Realtor
ParticipantYou don’t need a genius.
Every mortgage is unique. Let’s take an example of a simple 30 year fixed rate mortgage amortized over 30 years. Your very first payment will be just about all interest and a tiny tiny bit of principal. Your second payment will be a tiny fraction less interest and a tiny fraction more principal…. and so on and so on.
Now instead of making 12 monthly payments, let’s say you make biweekly payments. Well essentially you will be making an extra payment right? There are 26 biweekly pay periods in a year.
All you are really doing is paying down your principal in a structured manner. Indeed this is a good way to slowly chip away at your principal. Many will argue to not do that and instead invest that extra payment in an investment vehicle to get a better return then servicing your debt.
This post is not to debate that point but to simply illustrate an overly simplified answer to your question.
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Now getting to the specifics of your loan, your first 10 years are I/O so any payment you make above and beyond the interest will (I assume) go towards your principal. However you need to check with the lender to make sure that indeed will be the case.
You do have a problem you have to cope with. Right now your payment is interest only. At the end of the 10th year you will then need to make a full payment and you amortization will kick in. Your payment will go up. Yours is an example of many loans we talk about on Piggington.
Do you know what your new payment will be? You need to find out. HLS or Pasadena broker can answer better then I but I would bet that your payment will be based on a 30 year amortization. What is more troublesome is, what will your rate be? I assume your current rate is only for the first 10 years.
I don’t want to bring you down, but instead of focussing on making an extra payment, (if you can afford to do so) you may want to think about refinancing into a safer vehicle. Alternately if you are going to not be in the home and sell within the next 10 years it makes no sense to prepay it down.
ParticipantYou don’t need a genius.
Every mortgage is unique. Let’s take an example of a simple 30 year fixed rate mortgage amortized over 30 years. Your very first payment will be just about all interest and a tiny tiny bit of principal. Your second payment will be a tiny fraction less interest and a tiny fraction more principal…. and so on and so on.
Now instead of making 12 monthly payments, let’s say you make biweekly payments. Well essentially you will be making an extra payment right? There are 26 biweekly pay periods in a year.
All you are really doing is paying down your principal in a structured manner. Indeed this is a good way to slowly chip away at your principal. Many will argue to not do that and instead invest that extra payment in an investment vehicle to get a better return then servicing your debt.
This post is not to debate that point but to simply illustrate an overly simplified answer to your question.
********
Now getting to the specifics of your loan, your first 10 years are I/O so any payment you make above and beyond the interest will (I assume) go towards your principal. However you need to check with the lender to make sure that indeed will be the case.
You do have a problem you have to cope with. Right now your payment is interest only. At the end of the 10th year you will then need to make a full payment and you amortization will kick in. Your payment will go up. Yours is an example of many loans we talk about on Piggington.
Do you know what your new payment will be? You need to find out. HLS or Pasadena broker can answer better then I but I would bet that your payment will be based on a 30 year amortization. What is more troublesome is, what will your rate be? I assume your current rate is only for the first 10 years.
I don’t want to bring you down, but instead of focussing on making an extra payment, (if you can afford to do so) you may want to think about refinancing into a safer vehicle. Alternately if you are going to not be in the home and sell within the next 10 years it makes no sense to prepay it down.
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