My hubby and I have lived in a small townhome (800 sq ft) for 2 years. We had poor credit and no down payment at the time of purchase, so we got a high interest rate, and only have about $2000 equity. The place is too small, ARM set to adjust soon, and payments are already too high. While our credit is MUCH better now we still have no money saved since the payments are so high. I will be the first to admit we rushed into buying the place as the payments are too high and we didn't realize it would be so expensive to refinance (also did not expect our baby at time!). We listed the place for sale and it has been on the market for 6 mo w/little interest and no offers. My question is, does it make sense for us to purchase a new home (we are approved w/VA at 6.0% no $ down), go back to renting, or refinance even though we do not plan on staying much longer? And in such a bad market does it make sense to take a loss in order to take advantage of a low cost newer home? Thanks...
2007-11-29 13:17:55 · 6 answers · asked by Kathy G 2 in Business & Finance ➔ Renting & Real Estate
An additional note, my home is not going in forecloseure. We can make the payments and have never been late, we just have nothing leftover. Also even if we moved into a more expensive house, the interest rate is so much lower than our current that payments would be lower. My concern is we may have to take a loss on the home, but I am not sure if it is worth it to get out of the current home! Ths for the advice.
2007-11-29 14:25:32 · update #1
With the present situation with sub-prime mortgage lenders, you might be one of those homeowners who might have relief.
The very first thing I would suggest doing in the morning is to call the mortgage company and see if you qualify for one of the new mortgage programs being discussed and which are slowly "coming down the pipeline".
At the very most, you'll get relief and something will be able to be resolved with your situation.
At the very least you'll have a better understanding of the situation and PERHAPS someone will be able to direct you to the proper person to speak with to get the situation resolved.
In any event, you'll get the info you're looking for "right from the horse's mouth."
Thanks for asking your Q! I enjoyed answering it!
VTY,
Ron Berue
Yes, that is my real last name!
2007-11-29 13:44:34 · answer #1 · answered by Ron Berue 6 · 0⤊ 0⤋
If your condo has some good selling points you can sell it. But if it is nice for your life even though it is small then stay. The pool and park are part of what you pay for. The many friends there that you like are not going to be close when you move away. If the adjustable mortgage is going to remove the home in foreclosure keep trying to sell. You can always hope that a grandmother wants to be near her babies in your condo. If you plan to move every two years never buy a house.
2007-11-29 13:41:02 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Can't get a new home ( even at a lower cost) if you can't sell the one you have. I you attempt to do that make sure you have a contigency clause in your purchase agreement that says the purchase of the new home is contingent upon the sale of your current home.
Otherwise, refinance at a lower fixed rate & ride out the real estate storm for the next few years.
2007-11-29 13:28:43 · answer #3 · answered by john p 3 · 0⤊ 1⤋
You probably are approved for the VA loan, contingent upon the sale of this one. Is the $2,000 the difference between the list price and what you owe? If so, you need to bring money to close it. Have your Realtor run the numbers for you and give you an estimate of how much savings you need to bring to get out of this house.
2007-11-29 13:26:20 · answer #4 · answered by teran_realtor 7 · 0⤊ 0⤋
watch some of the decorating shows on HGTV and follow there advice for selling,less and small furniture make places look bigger,a little paint hoes along way,and put away personal items setting or hanging around and have good curb appeal,watch designed to sell or get it sold for some goos pointers,do them then contact a realtor about an open house.hope these suggestions help.
2007-11-29 14:02:32 · answer #5 · answered by mamanana9 4 · 0⤊ 0⤋
you will need to sell this home first before you buy another one.. sounds like you get a good deal with 6% so once this one sells you will be in good shape.. i would find a realtor in your area and see what they come up with.. they should be able to work out the numbers and see what is best for you and your family...found some good real estate advice.. i think it will help..good luck
http://www.goduckcreek.net/
http://www.goduckcreek.net/HelpCenter.html
2007-11-29 23:28:24 · answer #6 · answered by Pure Genius 3 · 0⤊ 0⤋