[vizcaya]

This is a good question. I was thinking of getting a 10yr I/O variable rate mortage for the home I just purchased. I would have saved about $350 month for 10 years, which ended up being about 42k. I did put 20% down on this house, and bought the house at about 30% off peak(Bank owned, put in a lowball offer). I felt that by going interest only, after 10 years, I would be fine, and the house would appraise for about what I paid for it. I would still have the 20% of equity in the house that I initally put in there. So I would have not much problem refi’ing.

Well after much thought, I elected to lock in a 30 yr fixed at 6%. I made this decision based on the assumptions the rate may be up to 8% or higher, and who knows if this housing market will recover in 10 years.

[vizcaya]

This is a good question. I was thinking of getting a 10yr I/O variable rate mortage for the home I just purchased. I would have saved about $350 month for 10 years, which ended up being about 42k. I did put 20% down on this house, and bought the house at about 30% off peak(Bank owned, put in a lowball offer). I felt that by going interest only, after 10 years, I would be fine, and the house would appraise for about what I paid for it. I would still have the 20% of equity in the house that I initally put in there. So I would have not much problem refi’ing.

Well after much thought, I elected to lock in a 30 yr fixed at 6%. I made this decision based on the assumptions the rate may be up to 8% or higher, and who knows if this housing market will recover in 10 years.

[vizcaya]

Found this board In January 2007, while searching for info on the housing bubble. I knew there was a bubble, but did not really know when it was going to Pop. Glad I came here, and did research. I placed my home on the market, and sold in April, made $240k profit. I then rented rent free living off the interest of the profits, for some months.

I did however go against the wisdom here, and purchased a bank owned home. I put a bid on the house at about 30% off peak, which I was thinking would be were the bottom would be. Since the bank approved, I am in my home now, and enjoying it.

[vizcaya]

Found this board In January 2007, while searching for info on the housing bubble. I knew there was a bubble, but did not really know when it was going to Pop. Glad I came here, and did research. I placed my home on the market, and sold in April, made $240k profit. I then rented rent free living off the interest of the profits, for some months.

I did however go against the wisdom here, and purchased a bank owned home. I put a bid on the house at about 30% off peak, which I was thinking would be were the bottom would be. Since the bank approved, I am in my home now, and enjoying it.

[vizcaya]

Found this board In January 2007, while searching for info on the housing bubble. I knew there was a bubble, but did not really know when it was going to Pop. Glad I came here, and did research. I placed my home on the market, and sold in April, made $240k profit. I then rented rent free living off the interest of the profits, for some months.

I did however go against the wisdom here, and purchased a bank owned home. I put a bid on the house at about 30% off peak, which I was thinking would be were the bottom would be. Since the bank approved, I am in my home now, and enjoying it.

[vizcaya]

Found this board In January 2007, while searching for info on the housing bubble. I knew there was a bubble, but did not really know when it was going to Pop. Glad I came here, and did research. I placed my home on the market, and sold in April, made $240k profit. I then rented rent free living off the interest of the profits, for some months.

I did however go against the wisdom here, and purchased a bank owned home. I put a bid on the house at about 30% off peak, which I was thinking would be were the bottom would be. Since the bank approved, I am in my home now, and enjoying it.

[vizcaya]

Found this board In January 2007, while searching for info on the housing bubble. I knew there was a bubble, but did not really know when it was going to Pop. Glad I came here, and did research. I placed my home on the market, and sold in April, made $240k profit. I then rented rent free living off the interest of the profits, for some months.

I did however go against the wisdom here, and purchased a bank owned home. I put a bid on the house at about 30% off peak, which I was thinking would be were the bottom would be. Since the bank approved, I am in my home now, and enjoying it.

[vizcaya]

Paramount I used the same numbers/assumptions of when the bottom would be, while placing bids back in July
You said:

Total Price Decline: I would say around 30% from the peak on average.

I used this percentage(30%) when I placed bids on a bank owned homes the wife and I liked.

The home we went with was sold at peak for $570k in 2005. I placed a bid on it for $420k(about 26% below peak). The bank accepted. Since the drop from peak was close to my assumptions of when the bottom would be, we bought now instead of waiting a couple of years till the bottom.

Looking at the market now, I still believe that my house will drop another 10% before it hits bottom. Which would be a 40% drop from Peak. Therfore It looks like my house which sold at peak for $570k in 2005, should be worth approx $350k by 2011.
Ouch!

[vizcaya]

Paramount I used the same numbers/assumptions of when the bottom would be, while placing bids back in July
You said:

Total Price Decline: I would say around 30% from the peak on average.

I used this percentage(30%) when I placed bids on a bank owned homes the wife and I liked.

The home we went with was sold at peak for $570k in 2005. I placed a bid on it for $420k(about 26% below peak). The bank accepted. Since the drop from peak was close to my assumptions of when the bottom would be, we bought now instead of waiting a couple of years till the bottom.

Looking at the market now, I still believe that my house will drop another 10% before it hits bottom. Which would be a 40% drop from Peak. Therfore It looks like my house which sold at peak for $570k in 2005, should be worth approx $350k by 2011.
Ouch!

[vizcaya]

Paramount I used the same numbers/assumptions of when the bottom would be, while placing bids back in July
You said:

Total Price Decline: I would say around 30% from the peak on average.

I used this percentage(30%) when I placed bids on a bank owned homes the wife and I liked.

The home we went with was sold at peak for $570k in 2005. I placed a bid on it for $420k(about 26% below peak). The bank accepted. Since the drop from peak was close to my assumptions of when the bottom would be, we bought now instead of waiting a couple of years till the bottom.

Looking at the market now, I still believe that my house will drop another 10% before it hits bottom. Which would be a 40% drop from Peak. Therfore It looks like my house which sold at peak for $570k in 2005, should be worth approx $350k by 2011.
Ouch!

[vizcaya]

Paramount I used the same numbers/assumptions of when the bottom would be, while placing bids back in July
You said:

Total Price Decline: I would say around 30% from the peak on average.

I used this percentage(30%) when I placed bids on a bank owned homes the wife and I liked.

The home we went with was sold at peak for $570k in 2005. I placed a bid on it for $420k(about 26% below peak). The bank accepted. Since the drop from peak was close to my assumptions of when the bottom would be, we bought now instead of waiting a couple of years till the bottom.

Looking at the market now, I still believe that my house will drop another 10% before it hits bottom. Which would be a 40% drop from Peak. Therfore It looks like my house which sold at peak for $570k in 2005, should be worth approx $350k by 2011.
Ouch!

[vizcaya]

Paramount I used the same numbers/assumptions of when the bottom would be, while placing bids back in July
You said:

Total Price Decline: I would say around 30% from the peak on average.

I used this percentage(30%) when I placed bids on a bank owned homes the wife and I liked.

The home we went with was sold at peak for $570k in 2005. I placed a bid on it for $420k(about 26% below peak). The bank accepted. Since the drop from peak was close to my assumptions of when the bottom would be, we bought now instead of waiting a couple of years till the bottom.

Looking at the market now, I still believe that my house will drop another 10% before it hits bottom. Which would be a 40% drop from Peak. Therfore It looks like my house which sold at peak for $570k in 2005, should be worth approx $350k by 2011.
Ouch!

[vizcaya]

I am doing a REFI right now. I am doing it now since I see that the prices(values) are coming down, and rates are low at this time. I was thinking of waiting till rates fell a bit more, but that may not happen.

[vizcaya]

I am doing a REFI right now. I am doing it now since I see that the prices(values) are coming down, and rates are low at this time. I was thinking of waiting till rates fell a bit more, but that may not happen.

[vizcaya]

I am doing a REFI right now. I am doing it now since I see that the prices(values) are coming down, and rates are low at this time. I was thinking of waiting till rates fell a bit more, but that may not happen.

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