[sdnerd]

I’m not too surprised – while I think the prices are still too high, it’s got to be looking fairly attractive now that prices have fallen.

I think we can all agree CV is a very high demand area.

Renting a 2 bedroom unit in that area will cost you ~$2,000/mo. Roughly $24,000/yr.

With a ~$400,000 sale price, 20% down, 6.5% fixed the mortgage payment is going to run ~$2,025/mo. Even with a lower down payment, we are still in the ~$2,200/mo range.

Tax break, HOA, insurance get pretty close to being a wash give or take a small amount.

I guess it depends on how much you think the units will eventually sell for. If they fall another 20% their selling price would be around ~$320,000. Maybe they will, maybe they won’t and who knows how long it will take or what bailouts will take place. Either way, your rent is costing you $24k/yr.

Personally I wouldn’t buy one, but the #s aren’t that horrible unless I’m just missing something here.

[sdnerd]

If you shop around, you can find respectable FDIC insured checking/savings rates.

Countrywide has a 5.25% one right now, ING Direct and Presidential both have okay rates as well. You can get ~6% for 6 month CDs if you look hard enough.

Wells Fargo has terrible rates; just keep a free checking account with them for ATM and bank access.

[sdnerd]

If you shop around, you can find respectable FDIC insured checking/savings rates.

Countrywide has a 5.25% one right now, ING Direct and Presidential both have okay rates as well. You can get ~6% for 6 month CDs if you look hard enough.

Wells Fargo has terrible rates; just keep a free checking account with them for ATM and bank access.

[sdnerd]

If you shop around, you can find respectable FDIC insured checking/savings rates.

Countrywide has a 5.25% one right now, ING Direct and Presidential both have okay rates as well. You can get ~6% for 6 month CDs if you look hard enough.

Wells Fargo has terrible rates; just keep a free checking account with them for ATM and bank access.

[sdnerd]

If you shop around, you can find respectable FDIC insured checking/savings rates.

Countrywide has a 5.25% one right now, ING Direct and Presidential both have okay rates as well. You can get ~6% for 6 month CDs if you look hard enough.

Wells Fargo has terrible rates; just keep a free checking account with them for ATM and bank access.

[sdnerd]

If you shop around, you can find respectable FDIC insured checking/savings rates.

Countrywide has a 5.25% one right now, ING Direct and Presidential both have okay rates as well. You can get ~6% for 6 month CDs if you look hard enough.

Wells Fargo has terrible rates; just keep a free checking account with them for ATM and bank access.

[sdnerd]

I’m not sure this is much of a win – they aren’t getting thrown own, but that might be what’s best for them.

Now their payments are going up, they are locked right back into another IO loan they (already) can’t afford at a slightly higher rate. They have no savings, 2 kids, and are relying on a single job. And even if their condo does happen to be worth what they originally paid for it 5 years from now, they haven’t paid down the mortgage.

I’m not familiar with Poway rents, but presumably you could rent something that *would work* for $1,600/mo if not less. The monthly savings alone could pay off some debt. Swap out the car payment for a cheap car. Have the wife at least get a part time job. They could salvage their situation, and be alright if they had the discipline and were willing to sacrifice.

Interesting.

[sdnerd]

I’m not sure this is much of a win – they aren’t getting thrown own, but that might be what’s best for them.

Now their payments are going up, they are locked right back into another IO loan they (already) can’t afford at a slightly higher rate. They have no savings, 2 kids, and are relying on a single job. And even if their condo does happen to be worth what they originally paid for it 5 years from now, they haven’t paid down the mortgage.

I’m not familiar with Poway rents, but presumably you could rent something that *would work* for $1,600/mo if not less. The monthly savings alone could pay off some debt. Swap out the car payment for a cheap car. Have the wife at least get a part time job. They could salvage their situation, and be alright if they had the discipline and were willing to sacrifice.

Interesting.

[sdnerd]

I’m not sure this is much of a win – they aren’t getting thrown own, but that might be what’s best for them.

Now their payments are going up, they are locked right back into another IO loan they (already) can’t afford at a slightly higher rate. They have no savings, 2 kids, and are relying on a single job. And even if their condo does happen to be worth what they originally paid for it 5 years from now, they haven’t paid down the mortgage.

I’m not familiar with Poway rents, but presumably you could rent something that *would work* for $1,600/mo if not less. The monthly savings alone could pay off some debt. Swap out the car payment for a cheap car. Have the wife at least get a part time job. They could salvage their situation, and be alright if they had the discipline and were willing to sacrifice.

Interesting.

[sdnerd]

I’m not sure this is much of a win – they aren’t getting thrown own, but that might be what’s best for them.

Now their payments are going up, they are locked right back into another IO loan they (already) can’t afford at a slightly higher rate. They have no savings, 2 kids, and are relying on a single job. And even if their condo does happen to be worth what they originally paid for it 5 years from now, they haven’t paid down the mortgage.

I’m not familiar with Poway rents, but presumably you could rent something that *would work* for $1,600/mo if not less. The monthly savings alone could pay off some debt. Swap out the car payment for a cheap car. Have the wife at least get a part time job. They could salvage their situation, and be alright if they had the discipline and were willing to sacrifice.

Interesting.

[sdnerd]

I’m not sure this is much of a win – they aren’t getting thrown own, but that might be what’s best for them.

Now their payments are going up, they are locked right back into another IO loan they (already) can’t afford at a slightly higher rate. They have no savings, 2 kids, and are relying on a single job. And even if their condo does happen to be worth what they originally paid for it 5 years from now, they haven’t paid down the mortgage.

I’m not familiar with Poway rents, but presumably you could rent something that *would work* for $1,600/mo if not less. The monthly savings alone could pay off some debt. Swap out the car payment for a cheap car. Have the wife at least get a part time job. They could salvage their situation, and be alright if they had the discipline and were willing to sacrifice.

Interesting.

[sdnerd]

It’ll be curious to see what ends up happening.

We have an election year, and the fact that nobody wants the economy to completely fail. I just can’t see the government letting this ship go over the cliff, at least without trying every possible last ditch effort to prevent it.

As much as many of us would like homes to be half priced over the next few years – the consequences of that could be drastic.

If they cut the rates again and allow some people to lock their rate for 7 years. That might stop a wave of foreclosures, and keep people in their homes paying their bills. Fewer banks go under, etc. Maybe prices won’t fall of the cliff, but dip a bit and then stay stagnant 10 years letting inflation ‘lower housing prices’.

A percentage of people who made stupid financial decisions aren’t punished, and get to free pass out of financial ruin. Nobody said life was fair – pretty sure that is rule #1 or 2 in the book of life as much as it may suck.

[sdnerd]

It’ll be curious to see what ends up happening.

We have an election year, and the fact that nobody wants the economy to completely fail. I just can’t see the government letting this ship go over the cliff, at least without trying every possible last ditch effort to prevent it.

As much as many of us would like homes to be half priced over the next few years – the consequences of that could be drastic.

If they cut the rates again and allow some people to lock their rate for 7 years. That might stop a wave of foreclosures, and keep people in their homes paying their bills. Fewer banks go under, etc. Maybe prices won’t fall of the cliff, but dip a bit and then stay stagnant 10 years letting inflation ‘lower housing prices’.

A percentage of people who made stupid financial decisions aren’t punished, and get to free pass out of financial ruin. Nobody said life was fair – pretty sure that is rule #1 or 2 in the book of life as much as it may suck.

[sdnerd]

It’ll be curious to see what ends up happening.

We have an election year, and the fact that nobody wants the economy to completely fail. I just can’t see the government letting this ship go over the cliff, at least without trying every possible last ditch effort to prevent it.

As much as many of us would like homes to be half priced over the next few years – the consequences of that could be drastic.

If they cut the rates again and allow some people to lock their rate for 7 years. That might stop a wave of foreclosures, and keep people in their homes paying their bills. Fewer banks go under, etc. Maybe prices won’t fall of the cliff, but dip a bit and then stay stagnant 10 years letting inflation ‘lower housing prices’.

A percentage of people who made stupid financial decisions aren’t punished, and get to free pass out of financial ruin. Nobody said life was fair – pretty sure that is rule #1 or 2 in the book of life as much as it may suck.

[sdnerd]

It’ll be curious to see what ends up happening.

We have an election year, and the fact that nobody wants the economy to completely fail. I just can’t see the government letting this ship go over the cliff, at least without trying every possible last ditch effort to prevent it.

As much as many of us would like homes to be half priced over the next few years – the consequences of that could be drastic.

If they cut the rates again and allow some people to lock their rate for 7 years. That might stop a wave of foreclosures, and keep people in their homes paying their bills. Fewer banks go under, etc. Maybe prices won’t fall of the cliff, but dip a bit and then stay stagnant 10 years letting inflation ‘lower housing prices’.

A percentage of people who made stupid financial decisions aren’t punished, and get to free pass out of financial ruin. Nobody said life was fair – pretty sure that is rule #1 or 2 in the book of life as much as it may suck.

[Author]

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