I am nervous, I just purchased my first home. I did 100% finance. I noticed that home value is going down, will I be able to refinance after 6mos or 1 year. The way things are looking know I am scared that the value of my home might not go up.
2007-09-26 07:36:18 · 7 answers · asked by karen a 2 in Business & Finance ➔ Renting & Real Estate
You're home is your home first. It is an investment second. Most likely 6 months to a year down the road you will not have too much equity, if any. Especially if you are on an interst only loan. The first few years of any 30 year loan is mostly interest anyway, meaning your principal balance will only be slightly dropping.
Now was a smart time to buy with home prices as low as they are, but expect to be in the home for a few years before you can see any realy increase in value.
2007-09-26 07:43:39 · answer #1 · answered by Alex Myers 2 · 0⤊ 0⤋
You probably will not be able to refinance within 1 year. You also will probably not be able to sell the house and make any money if values don't increase by at least 10% You really do need to stay at least 5 years or so in order to get out of the mortgage without losing money.
2007-09-26 12:57:54 · answer #2 · answered by matzael 3 · 0⤊ 0⤋
What kind of terms did you by fiance your home? Why would you want to refinance in a year? If you plan to live in the house for five or more years you should be fine. Don't worry about the value unless you bought the house strictly as an investment in which case maybe you should have done more homework.
2007-09-26 07:45:03 · answer #3 · answered by Ozzie 4 · 0⤊ 0⤋
The main question would be is why would you want to refinance? Refinancing is costly and unless you save 2% on your interest rate it generally is not worth the cost. I feel it is important to get the deal done right the first time instead of making promised of refinances to someone.
2007-09-26 07:45:52 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Please tell me you didn't get into a loan whereby you will need to refinance within a year.
Why do you need to refi?
Your value will eventually go up.......but a home is not a short term investment.
If you can make your payment and you're not going anywhere then there is no reason to get nervous. Make your payment and wait out the market like everyone else.
Good Luck
Open Book Advisors
2007-09-26 08:29:21 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Hopefully you went with a 30 year fixed rate, then you should have no problems just wait it out. The only time I would worry is if you went with a 1 year adjustable, or interest only loan. If that is the case get your bills paid off because you will need the money when the rates rise.
2007-09-26 09:44:32 · answer #6 · answered by Pengy 7 · 0⤊ 0⤋
There is just no way to accurately forcast mortgage interest rates, in a global economy to many factors come into play.
100% financing and a declining market with rare pockets of exception to deflating values are the reason foreclosures have soared.
Good luck
2007-09-26 07:41:39 · answer #7 · answered by mazziatplay 5 · 0⤊ 0⤋