I'm making two interest only mortgage payments on my condo. $605 and $180 interest ONLY payments. Plus im paying $130 in association fees.($915 every freaking month---for 1/1 condo priced at 100k) A ripoff!
All that money is going out the window. Im better off renting! None of my monthly payments or association fees are going into the mortgage and I have only lived in my condo 6 months. Condo hasnt increased in value. Anyone have ideas? I cant afford this any longer.
2006-08-22 14:53:41 · 11 answers · asked by usa_jcrew68 1 in Business & Finance ➔ Renting & Real Estate
yeah, that's a bad deal. cut your losses and sell the place if you can rent for less a month.
2006-08-22 14:57:14 · answer #1 · answered by Anonymous · 0⤊ 0⤋
So you're paying about 9.420% interest (blended)? That must include the taxes, right? If not you got ripped off! Paul S, get real. The loan isn't illegal and the attorney general isn't going to help you. The lender is for sure not going to drop your rate. If they did that, everyone would want a lower rate. We aren't talking about a credit card here. Did you shop around?
Condo are depreciating in value right now so you'd have to pay to sell most likely. Hold on and suck it up for a few years or refinance. If you thought this was a ripoff, why did you buy? $915/month seems reasonable to me.
2006-08-25 19:59:57 · answer #2 · answered by mortgageguy 2 · 0⤊ 0⤋
If you really like the place, and can see yourself living there for several years, I would get out of the interest only balloon note. It couldn't hurt to have a real estate professional give you a market analysis and some free advice to determine how long it will likely take to get in an equity position. Only through home ownership can you deduct interest, points, and property taxes at the end of each year. Real estate is hardly ever a bad investment.
2006-08-22 18:25:53 · answer #3 · answered by massomia 3 · 0⤊ 0⤋
Take your loan documents to a Real Estate Lawyer and contact your State Attorney General. The loan may be illegal. At the same time contact the lender you are making payments to and tell them you need to negotiate a different arrangement. Also look at refinancing to a fixed rate. I just helped a client who was 7 months out of Chapter 7. They are paying about 10% on $143,500 and the payments are about $1,200/month P. & I.
Paul
2006-08-22 15:33:54 · answer #4 · answered by Paul S 3 · 0⤊ 0⤋
Hmmm.... more information? why do you have 2 mortgages that are interest only on a $100K condo? How long have you had this property? Why don't you put extra money in with your payment to bring your principal balance down? How is your credit? Does the $130.00 a month in assoc. fees get you anything? Water/sewer/trash or grounds keeping?
2006-08-22 14:58:43 · answer #5 · answered by Johnny B 1 · 0⤊ 1⤋
What kind of rate are you paying if interest only paymnts total $785????? With interest rates on the rise you need fixed rate traditional mortgage NOW! Interest nly mortgages were designed for the incredibly wealthy and should never have been offered to regular consumers like me and you. The only reason they were is because rates got so low, unless you are planning on moving out tommorrow ou need to refinance ASAP or you are in for trouble.
2006-08-22 14:59:11 · answer #6 · answered by mdjohnsonusc 2 · 0⤊ 0⤋
Why anyone would have an interest-only mortgage on a condo is beyond me...and people wonder why the real estate bubble is ready to ***POP***
This sounds like California silliness to me...
2006-08-22 14:57:29 · answer #7 · answered by The ~Muffin~ Man 6 · 0⤊ 0⤋
Wow, that is really expensive. Can you refinance? That might lower your payment. The bad thing is you haven't lived there long enough to have equity in your house. When you sale it you might loose your butt on it. Hope you get out of it and find something better.
Good luck!
2006-08-22 15:02:05 · answer #8 · answered by Emilyclair 2 · 0⤊ 0⤋
You better bite the bullet...I wouldn't expect to see any increase in value for at least five years.
But even without improvements and if it's in a good location... you could profit up to 30k.
2006-08-22 15:01:43 · answer #9 · answered by ? 6 · 0⤊ 0⤋
Are you stupid?
This 'ripoff' is the deal you got yourself into.
2006-08-22 14:55:50 · answer #10 · answered by Oh Boy! 5 · 0⤊ 0⤋