| RE:Real estate question... |
Subject: RE:Real estate question... by redwing76 on 2008/2/10 16:00:18 A 30 year fixed is the only way to go. Adding on in a good market makes sence, but in a declining market it doesn't. If you can refi into 30 fixed at say 5.6% do it. Probably the bank will not do it if you owe more than 85% on your home. If your credit score is 700+ and you owe less than 75% or 80% on your home and the loan is below the jumbo loan cutoff at $417k it might just fly. If you can do it, do it. When you buy a home you're not really so much buying a home as your really buying money. Up untill 2 years ago money was cheap and plentiful. When money got tight the speculators started dumping property they weren't in for a home. It was about the money. So now California, Nevada, Florida are in step declines and equity is a thing of the past. Some folks with good credit scores and the ablilty to pay are walking away from thier homes. Even when they bought in with 20% down with the decline in equity thier finding themselves up side down with no where to go. So there walking away. Theres a web-site called walking away .com. The daughter and her husband bought 1,900 sgft new in Fresno in 2006 for $377,000 with a 1st and a 2nd. I tried to sell them our rental for $240,000 but he stuck his nose up at it and said we were tring to dump the house on him and then he said we only buy new. "We don't buy used houses". Today that new house is worth $235,000 and dropping. Our rental is worth $197,000. They've lost not only the equity that didn't happen but also the principal something like $142,000. If he'd bought our used house for $240,000 they would have lost $43,000. They weren't thinking money, they were thinking I want a new house. This is the worst housing market since 1929. 08 10% drop in value, 09 15%. In the central valley a 2 year old 2,400 sgft is going for $210,000. Fix your loan and save as money as you can, its getting to be a buyers market. Everyone says that real estate is a long term investment. Stocks are real estate is get in make the repairs and sell it. Always think money........... |
