- Aug 12, 2009
- 5,314
- 103
- 291
We came close.Our value dropped by 20k. Just try to look at those mortgage payments as rent payments. Gotta pay to live somewhere. Forget the equity too. I know so many people who borrowed on their homes equity,and they are now losing their homes.Never put the home up on the chopping block.
We would never do this,but I have THOUGHT about it and I think it would work...... buying another home that is super cheap.Shoot, some are so cheap you can put it on a credit card or pay cash.Once the house is clear you let the other one go. It will ruin your credit,but atleast you will no longer have an upside down mortgage home or any mortgage for that matter!
Thing is someone will swoop in and buy YOUR house super cheap,but never mind that.Just the way the market is. We are just making our payments and sucking it up.Trying not to know the sales amounts around us,because it is always so annoying to see a neighbor get a similar house for 30k when you paid 90k!
We did a refi.Payments are about the same or a wee bit less,but went from a 30y loan to a 15y with lower interest rate. Closing costs are a killer,but might be worth it in your case if you are looking at the payments rising.Funny thing is when we were signing the papers I swear the ink wasn't dry before we go resold(by the bank) to fannie mac. The bank still does everything,but Mac Daddy owns us.We also try to pay extra on the principle whenever we have some cash to throw at it.
My mom and her neighbor had banks telling them they did not qualify for a refi due to their income.Funny thing is the refi would make their payments lower,and like my mom said(many many years ago), " If I am making a $1,500 mortgage payment(with my current income) what makes you think I could not afford to pay $500 after refinancing?" The bankers were not THINKING,or I guess they just wanted them to lose their homes. My mom went to talk to the head banker and finally got that refi.She paid off her house.
Best wishes!
We would never do this,but I have THOUGHT about it and I think it would work...... buying another home that is super cheap.Shoot, some are so cheap you can put it on a credit card or pay cash.Once the house is clear you let the other one go. It will ruin your credit,but atleast you will no longer have an upside down mortgage home or any mortgage for that matter!
Thing is someone will swoop in and buy YOUR house super cheap,but never mind that.Just the way the market is. We are just making our payments and sucking it up.Trying not to know the sales amounts around us,because it is always so annoying to see a neighbor get a similar house for 30k when you paid 90k!
We did a refi.Payments are about the same or a wee bit less,but went from a 30y loan to a 15y with lower interest rate. Closing costs are a killer,but might be worth it in your case if you are looking at the payments rising.Funny thing is when we were signing the papers I swear the ink wasn't dry before we go resold(by the bank) to fannie mac. The bank still does everything,but Mac Daddy owns us.We also try to pay extra on the principle whenever we have some cash to throw at it.
My mom and her neighbor had banks telling them they did not qualify for a refi due to their income.Funny thing is the refi would make their payments lower,and like my mom said(many many years ago), " If I am making a $1,500 mortgage payment(with my current income) what makes you think I could not afford to pay $500 after refinancing?" The bankers were not THINKING,or I guess they just wanted them to lose their homes. My mom went to talk to the head banker and finally got that refi.She paid off her house.
Best wishes!
