Post # 1
I recently got married and my husband purchased his house about 4 years ago. Unfortunately his debt is now mine as well. Right now we are $40k upside down on the mortgage. Since the wedding is over now we plan to pay a ridiculous amount of money to pay down the principle every month. I know there are many people in the same boat. Just wondering how many other bees are in the same situation?
Post # 3
We’re home owners (just purchased in ’09), but I don’t really see our mortgage as this insane black hole we will never dig ourselves out of (we’ve already paid down 10k in 1yr), I like to think of it as more an investment in our future, since we bought a starter home & plan on selling it for a profit in about 4 years.
Post # 4
We currently owe a little more than our house is worth. FI bought the house four years ago and did 100% financing. The only saving grace is that neither loan is an ARM and both have decent interest rates. We looked at refinancing recently, which is how we found out that the house is worth about $10K less than we owe. We’re throwing a lot of extra money at the principle in hopes that when the market turns around we’ll be able to move without losing our shirts.
Post # 5
no, we put $50K down on ours so we’ve got lots of equity in ours 🙂
Post # 6
@shedayz: Wow, I wish $50,000 bought equity in the Bay Area where we are moving!!
We plan on putting a huge chunk down on the place we purchase, so hopefully this won’t ever be an issue….but you never know whether you’ll lose money on a house even if you aren’t technically “upside down”.
Post # 7
@crayfish: we live in the south so $50K is sometimes 50% of the house cost lol.
Post # 8
We bought our home in 2006 with a large down payment. We are planning on paying the mortgage off this year.
Post # 9
By the time we sell, we should be ok…
Post # 10
My remaining mortgage and what my house was recently valued at is about the same….which sucks b/c I have been in this house for 10 years
Post # 11
I think we’re in the black because we had a reasonable downpayment and put $20,000 extra toward the principle last year, but our condo is worth about $40,000 less than when we bought it in 2007.
Post # 12
My exhusband and I still own a house that is worth about $90,000 less than we bought it for in 2006. Its awful.
Post # 13
well we are about to put ourselves to be in debt for the next 25 years or so.
Whats the average price for a house over in the US??
Because here to buy a block and build is about 330k.
Post # 14
I was just talking to my Mom the other day and she mentioned how her long-time friend and neighbor decided to keep their house (they were thinking of shorting it) because they have zero equity. It seems a lot of people in Southern California was hit hard! But that couple has lived in their home for a long time — they did make some financial mistakes that led up to their predicament but I find it hard to understand the logic of just letting it go.
I think of it this way: if it’s your primary home and you’ve invested time and money into it (renovations, etc) then ride it out. It’ll be more of a pain to move and find another place even if it’ll mean a cheaper mortgage. Most of the time, doing all of that would mean you’re also downgrading to a smaller home, even if it’s in a newer neighborhood.
If you’re in it for the long haul, then there’s a whole lot more to consider aside from the current market value. How long will it take to settle into a new neighborhood and find a new place? Would you regret your decision if in a few years if the property market in the neighborhood recovers?
On the other hand, if it’s a not-so old property or you have less ties to the home and neighborhood, selling it for a loss might be worth the financial freedom each month.
How much would you pay for a comparable apartment in your area? If it’s about the same, then it shouldn’t look so grim afterall
Post # 15
@MrsSaltWaterTaffy: I’m so jealous! Wow, that is so great, we have about 6 years to go and I am so excited, I can not wait!!!! 🙂
Post # 16
@ccranetobe: It really varies all over by location here in the US. Some of my friends are currently looking at buying a lot and building, and a nice-ish but not extravagant house around here in the midwest is about $140k. I know that wouldn’t get much of anything in a bigger city even in the midwest, and covers next to nothing in large cities.