(Closed) The housing market is seriously depressing me!!!

posted 5 years ago in Emotional
Post # 4
Member
11760 posts
Sugar Beekeeper
  • Wedding: November 1999

No do not refiance!  I am no expert, but throughout business school was constantly told not to refiance unless you HAVE to – or are planning to live there forever!

 

Sorry you are dealing with this – we are in a similar situation.  FI bought the house when he was single and thought he’d live here for a few years then sell.  Now it’s lost quite a bit of value and we are ready to move out in the next 2-3 years and are upside down.  We are lucky though as we live near a few big universities and may be able to rent it out.  Hopefully that’s an option for you! The housing market just sucks right now! Hopefully it will bounce back more soon but I’m not getting my hopes up!

Post # 5
Member
744 posts
Busy bee
  • Wedding: December 2012

Rates can go up or down but what you have is better than cash it’s a home you can live in. Now is a rubbish time to have to move or sell a house but it won’t always be this way, hold on and you’ll come out of the otherside 🙂

Post # 6
Member
92 posts
Worker bee
  • Wedding: April 2010

Yeah.  We had 30k equity when we bought have lost over 100k in value and are about 70k underwater.  We would love to refinance but our mortgage lender is only offering .25 percent off.  That isn’t worth the closing costs.  So, we are trying to figure out what to do.  You could refinance but keep paying the old price,  it would get the principal down faster.  We need the cheaper payments because i took a new job at a lower salary.

Post # 7
Member
2086 posts
Buzzing bee
  • Wedding: June 2012 - Pippin Hill Farm & Vineyards

Don’t refinance.

I check the MSL weekly to see what neighboring homes are being listed for. That was, there are no surprises.

Bring upside down is very common today. Google that and find some simple artlces to read on SmartMoney.com or other financial websites.

Post # 8
Member
243 posts
Helper bee
  • Wedding: August 2013

I understand your frustration! FI and I bought a house last summer and had to move unexpectedly for a job opportunity.  We originally thought about trying to sell but would have lost money.  I definitely would recommend renting your house when it comes time to move! We were able to rent our house for a good bit more than our mortgage payments. We are hoping that the market will improve within the next few years so we can sell it.

Post # 9
Member
7168 posts
Busy Beekeeper
  • Wedding: October 2010

Ex Husband and I bought a house for $300,000 in 2006.  This year it appraised for $209,000.  I feel your pain.

Post # 10
Member
5425 posts
Bee Keeper
  • Wedding: November 2012

I see you’re in Florida. That is not in your favor since its all over tha florida was hit hard by the housing issue.  It’s going to take awhile for everyone to rebuild equity. Just leave your financing as it is. Your still in a better situation than others I’m sure.  

Post # 11
Member
1253 posts
Bumble bee
  • Wedding: November 2011

@arametta127:  I have to disagree with the PPs who advise people to never refinance.  It absolutely depends on each situation but I am amazed at how many people out there are currently paying 6% interest on homes they don’t intend to sell in the near term.  Full disclosure, I am a CPA and have worked in finance for 20+ years, I have also owned 3 homes in my life, and have refinanced on several occasions and saved a great deal of money doing so.

I am refinancing my home now to a 15 year mortgage, and will save $6,000/year in interest and cut 7 years off my mortgage in doing so, which obviously makes the closing costs well worth it.  That said, my home has also decreased in value and I will have to increase the equity in my home to get the rate I want.  It stinks, but that money is going to my equity, and I can take the money out of savings without causing hardship, so I’m going forward with it.

In your case, assuming the appraised value is accurate, you’d need to come up with $60,000 to sell the home, so assuming you don’t have to move right now you may want to sit tight  and hope that home values creep up.  However, you may be able to refinance under the HARP 2.0 program even though your mortgage is underwater – you should definitely look into it.  If you can lower your rate and start paying that extra $200/month toward your principal you can bring up your equity faster and at the same time take years off of your mortgage.  Good luck!

 

 

Post # 12
Member
1659 posts
Bumble bee
  • Wedding: July 2012

I agree with PP who mentioned HARP or another government program for homeowners underwater. One of our neighbors did this and it’s saving them a ton of money and worry – they really thought they were going to have to walk away from their house.

The housing market where I live is improving. We bought our house in 2010 as a foreclosure…the folks who bought it in 2007 paid $160,000 more than we did – holy crap!

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