[SDowner]

The rate hikes adds more pressure to the bubble. It will make it burst faster. The rate hikes make it very difficult for people already stretched out in their 3 and 5 ARMs to refi to 30-year or 15-year or sell during this depreciating scenario, especially the prime borrowers who got sucked into the bubble.

[SDowner]

I personally think people would be MORE productive if they didn’t waste their entire days in a cubicle.”

AND reading blogs 😉

and getting addicted

SDowner

[SDowner]

I personally think people would be MORE productive if they didn’t waste their entire days in a cubicle.”

AND reading blogs 😉

and getting addicted

SDowner

[SDowner]

My 2-cents for what its worth. I think u have too many variables in ur equation.

Buying now, when housing is going down, husband a student with “future” income (maybe ur income is good to support it), hoping to refi to a higher loan in 2-3 years time (if u have read this board postings and agree with their logic, it would be VERY difficult to do that), trying to save in 401 k and equity with money saved from interest only option in CURRENT market scenario (in another 2-5 years u might be forced to put that money towards housing if ur home doesnt appraise for refi).

When market turns pretty bad in next 2-5 years, that is when u wuld be trying to consolidate ur housing and debt situation. I think that is a bad idea.

As my name suggests, I err “own” san diego property and it is doing nothing but drain my money. Please think before you jump. Unless it makes sense to ur individual situation, dont attempt it. Buying right now and not being able to comfortably afford a 30-year or 15-year fixed with 20% down payment is exposing urself to lot of pain in the next 2-10 year time period.

A 30-year with first 10 year IO is a good loan option, depends on how long u will keep the house, loan amount, down payment etc. in ur case, it might work out cause u have a large downpayment, but then in that case why not a good 15-y fixed mort?? or better hold on to ur equity and buy back when affordability makes sense to ur family budget.

SDowner

[SDowner]

My 2-cents for what its worth. I think u have too many variables in ur equation.

Buying now, when housing is going down, husband a student with “future” income (maybe ur income is good to support it), hoping to refi to a higher loan in 2-3 years time (if u have read this board postings and agree with their logic, it would be VERY difficult to do that), trying to save in 401 k and equity with money saved from interest only option in CURRENT market scenario (in another 2-5 years u might be forced to put that money towards housing if ur home doesnt appraise for refi).

When market turns pretty bad in next 2-5 years, that is when u wuld be trying to consolidate ur housing and debt situation. I think that is a bad idea.

As my name suggests, I err “own” san diego property and it is doing nothing but drain my money. Please think before you jump. Unless it makes sense to ur individual situation, dont attempt it. Buying right now and not being able to comfortably afford a 30-year or 15-year fixed with 20% down payment is exposing urself to lot of pain in the next 2-10 year time period.

A 30-year with first 10 year IO is a good loan option, depends on how long u will keep the house, loan amount, down payment etc. in ur case, it might work out cause u have a large downpayment, but then in that case why not a good 15-y fixed mort?? or better hold on to ur equity and buy back when affordability makes sense to ur family budget.

SDowner

[SDowner]

Hi InCarmelValley,

We got 30_year 6.125% with no points or junk fees. In the whole transaction, we paid about $74 extra in interest because of memorial day weekend and title taking time to close after funds were released. I am fuming a little over that dollar amount, not in money terms, but just in principle.

We got 30-year 6.125% because we have VERY good FICO score, save a lot (have 2 years of mortgage in an emergency fund), live below our means, save 17% of salary in 401(k), can invest rest of money in stocks after refi situation. Our behaviour helped us pay down HELOC in 3 years (original personal plan was to pay down in 5 years), and added 12000 worth of improvements to our modest abode for personal happiness.

We shopped around “A LOT”, got ourself educated, calling different banks, mortgage brokers, contacts thro friends, colleague at work etc. Then, we chose someone based on lots of factors, reliability, rate, our conditions being listened to. (Piggington helped a lot)

What I am trying to say is, InCarmelValley if you know ur strength financially, if you are a good customer for the lender and you know your house will appraise with 20% equity, then no matter who you speak to, you should get the best possible rates with best possible conditions. Do not accept anything less.

Sorry for not giving more info. This is my first experience blogging in any website and I am very wary of giving out any kind of personal information.

SDowner

[SDowner]

Hi InCarmelValley,

We got 30_year 6.125% with no points or junk fees. In the whole transaction, we paid about $74 extra in interest because of memorial day weekend and title taking time to close after funds were released. I am fuming a little over that dollar amount, not in money terms, but just in principle.

We got 30-year 6.125% because we have VERY good FICO score, save a lot (have 2 years of mortgage in an emergency fund), live below our means, save 17% of salary in 401(k), can invest rest of money in stocks after refi situation. Our behaviour helped us pay down HELOC in 3 years (original personal plan was to pay down in 5 years), and added 12000 worth of improvements to our modest abode for personal happiness.

We shopped around “A LOT”, got ourself educated, calling different banks, mortgage brokers, contacts thro friends, colleague at work etc. Then, we chose someone based on lots of factors, reliability, rate, our conditions being listened to. (Piggington helped a lot)

What I am trying to say is, InCarmelValley if you know ur strength financially, if you are a good customer for the lender and you know your house will appraise with 20% equity, then no matter who you speak to, you should get the best possible rates with best possible conditions. Do not accept anything less.

Sorry for not giving more info. This is my first experience blogging in any website and I am very wary of giving out any kind of personal information.

SDowner

[SDowner]

Hi All,

Thanks for all your advise. Closed the escrow on refi for 30-year 6.125%, no prepayment penalty. We were lucky in that our house appraised with 20% equity right now. As many in this board would say that situation will drastically change in upcoming 5 years. I will not only lose my equity but also high carrying costs due to HOA, high P&I, property tax, etc.

We did calculations based on what it would cost to rent similar housing like ours right now in the same area and compared it to owning our house for the next 5 years. As Perrychase said, we could not get a positive spin on it, even with tax deductions. (this is what will bring down the market as you all predict)

I am not trying to explain or protect my decision here (might sound like it), just saying that we took all the risks into calculation with a worst case scenario (50% loss in the next 5 years) versus renting at the same time. As SDR, Rustico have pointed out repeatedly, our decision to stay put in spite of loss was made upon job situation of both spouses, what we might lose by selling right now compared to selling after 5 years etc.

No one knows what will happen in the next 5 to 10 years. Everything might change financially for us. It might get better or it might get worse. I am hoping for the best, but preparing for the worst.

Once again, this website is awesome. I have learnt a lot from many people here. Thank you all.

SDowner

[SDowner]

Hi All,

Thanks for all your advise. Closed the escrow on refi for 30-year 6.125%, no prepayment penalty. We were lucky in that our house appraised with 20% equity right now. As many in this board would say that situation will drastically change in upcoming 5 years. I will not only lose my equity but also high carrying costs due to HOA, high P&I, property tax, etc.

We did calculations based on what it would cost to rent similar housing like ours right now in the same area and compared it to owning our house for the next 5 years. As Perrychase said, we could not get a positive spin on it, even with tax deductions. (this is what will bring down the market as you all predict)

I am not trying to explain or protect my decision here (might sound like it), just saying that we took all the risks into calculation with a worst case scenario (50% loss in the next 5 years) versus renting at the same time. As SDR, Rustico have pointed out repeatedly, our decision to stay put in spite of loss was made upon job situation of both spouses, what we might lose by selling right now compared to selling after 5 years etc.

No one knows what will happen in the next 5 to 10 years. Everything might change financially for us. It might get better or it might get worse. I am hoping for the best, but preparing for the worst.

Once again, this website is awesome. I have learnt a lot from many people here. Thank you all.

SDowner

[SDowner]

I can answer that with an emphatic “yes”. My sibling lives in Seattle and I have been warning him against buying (thanks to piggington and some other Seattle house blogs). He has been getting the usual feed of “market going up”, “will be priced out”, “good time to buy”, “100% financing” etc. not from RE people, but from people who recently bought homes.

SDowner

[SDowner]

I can answer that with an emphatic “yes”. My sibling lives in Seattle and I have been warning him against buying (thanks to piggington and some other Seattle house blogs). He has been getting the usual feed of “market going up”, “will be priced out”, “good time to buy”, “100% financing” etc. not from RE people, but from people who recently bought homes.

SDowner

[SDowner]

Regarding attached condos in MYKONOS LANE. can anyone shed some light on this. I see a lot of activity in that complex. comps show lots of sales, too many. I assume that they must be foreclosed or repo by bank???, but then why are there so many foreclosures in such a short time? Too many speculators/investors/poorly financed people buying and unloading at the same time?? or a single investor unloading all of them??

SDowner

[SDowner]

Regarding attached condos in MYKONOS LANE. can anyone shed some light on this. I see a lot of activity in that complex. comps show lots of sales, too many. I assume that they must be foreclosed or repo by bank???, but then why are there so many foreclosures in such a short time? Too many speculators/investors/poorly financed people buying and unloading at the same time?? or a single investor unloading all of them??

SDowner

[SDowner]

I totally agree with LS2008 (not how it was expressed). I do not blame any specific profession, realtors, or healthcare professionals. I think as individuals we need to have a strong moral core of right and wrong. Nothing wrong in making money, but no need to bend ur spine backwards to get along with corruption in society and the “general” trend of making a quick buck by compromising ur values.

anyone who has read history would realize over time any country or society suffers and fails when ordinary people generalize corruption and immorality as “conforming” to society and “earning” ur living.

SDowner

[SDowner]

I totally agree with LS2008 (not how it was expressed). I do not blame any specific profession, realtors, or healthcare professionals. I think as individuals we need to have a strong moral core of right and wrong. Nothing wrong in making money, but no need to bend ur spine backwards to get along with corruption in society and the “general” trend of making a quick buck by compromising ur values.

anyone who has read history would realize over time any country or society suffers and fails when ordinary people generalize corruption and immorality as “conforming” to society and “earning” ur living.

SDowner

[Author]

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