Due to market conditions our home is undervalued. It's not a huge concern right now b/c I won't need to refinance for another 3 years. But if this were 3 years from now I think I'd be screwed. Hypothetically, If I have a mortgage of 300k and the house is only valued at 250k (based on comps, recent sales, etc.) , what happens when it is time to refinance? Even if the bank will fund 100% of the value (250k) what options will I have on the other 50k? This is keeping me up at night.
2007-09-19 21:37:02 · 6 answers · asked by bigboatguy 1 in Business & Finance ➔ Renting & Real Estate
you will be in the same predicament that many people are in currently, you will not be able to refinance,
2007-09-20 00:39:16 · answer #1 · answered by goz1111 7 · 0⤊ 0⤋
as far as refinancing you would hav no pptions if the situation was the same in 3 years! this i the primary reason behind the huge number of foreclosures.
what is happening now is realy why most should nog get into a adjustable rate mortgage. the lenders that are offering you that great rate on your mortgage only qualify you at the starting rate and not the final fully adjusted rate.
if they had there many people who are being foreclosed would not be in the mess they are in now! unfortunately this practice caused many to think they could afford a much higher proced home and found themselves not able to make thier mortgage payments.
I would not worry too much the market should start to climb well before then many markets are leveling off. i think we are seeing the bottom now and the market proces adjustment has or is near its end!
there are several things that you could do to strengthen your situation first would be if possible pay an extra 200 dollars seperately on the home monthly mark on the check "apply to principle" doing this helps tremandously and a simple payment of 200 make what you oew 280,000
most of what you pay for the first 10 years is interest
EX: if you are paying lets say 6.375% interest on a 30 yr mortgage
after paying on it for 3 year you have paid a total of $57,168.30 towards interest and little to the principle aprox 11,500
2007-09-20 00:47:06 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Something that MIGHT happen in 3 years is keeping you up at night?? You need to find a hobby.
You won't be able to refinance if you owe more than the house is worth.
Stop worrying about something that isn't going to happen. You're going to give yourself health problems, and for no good reason!
2007-09-20 01:46:14 · answer #3 · answered by Roland'sMommy 6 · 0⤊ 0⤋
The Wilpons are marvelous up between the worst vendors in baseball. heavily, I parent that they are professionals and that there must be some sort of helpful argument for the flaws they do, yet from time to time this is merely recommendations boggling. The Wilpons have been messing up the Mets for years now alongside with their terrible GM and supervisor.. merely undesirable. The Mets have good gamers, yet terrible, terrible team and vendors in the back of the curtain.
2016-11-05 22:29:35 · answer #4 · answered by ? 4 · 0⤊ 0⤋
Unfortunately with those number you won't be able to refinance. Sorry.
2007-09-19 21:49:28 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 0⤋
I found interesting information about your answer & the best options here. (mortgage opportunitty refinancing )
http://all-mortgage-calculators.blogspot.com/2007/06/mortgage-opportunitty-financing-and.html
Good luck!
2007-09-20 11:53:39 · answer #6 · answered by Anonymous · 0⤊ 0⤋