US residential real estate in its worst recession in 16 years

[Pinocchio Liberal 268]

There is no equity in buying at the TOP!

Sh!t always rolls down hill!

[Hilarious Clinton 452]

I'll be in the market for a house in 7 months.

[brtlmj 0]

Bear in mind though, the longer you keep a loan, the less interest you pay per PI payment. Once you refi, you reset back to square one and end up paying mostly interest again.

Each month you pay one month's interest on your principal. Assuming that you have a traditional mortgage, the rest of your payment is used to repay the principal, so that it decreases and when you make your next payment, the "interest" part will be a bit smaller.

After refinancing your principal stays the same and your interest rate goes down - this means that you will be paying LESS interest than you used to, all other things being equal. There is no going back to square one here.

Various fees are the main reason why one should not try to refinance when a loan with a 0.01% lower APR becomes available.

[w¡n9Nµ7 §£@¥€r 123]

Bear in mind though, the longer you keep a loan, the less interest you pay per PI payment. Once you refi, you reset back to square one and end up paying mostly interest again.

Each month you pay one month's interest on your principal. Assuming that you have a traditional mortgage, the rest of your payment is used to repay the principal, so that it decreases and when you make your next payment, the "interest" part will be a bit smaller.

Yes, you are correct. Most people will 'cash out' for home renovations and sometimes even include their loan origination fees in the balance.

If they don't do any of that, you are absolutely correct. Thank you for keeping me honest.

[AnaAndDaniel 0]

I'll be in the market for a house in 7 months.

northern Cali?

op: so what is the topic again? oh yeah, that the market is bad. maybe not hit bottom yet. let's say that is true. what does it mean for currnt homeowners with no plans on selling anytime soon? maybe even never.

Daniel

:energetic:

Edited July 29, 2007 by AnaAndDaniel

[w¡n9Nµ7 §£@¥€r 123]

what does it mean for currnt homeowners with no plans on selling anytime soon? maybe even never.

Besides a possible change in your neighborhood dynamic, nothing.

My neighborhood is changing rapidly. Last night, for the first time in the years I've lived here, there was a streetfight. The kind of people who engaged in the fight didn't exist in this neighborhood when I moved here. Today, they do - they are tenants, the product of homes that did not sell in this slow-moving market and were offered up as rentals instead.

Edited July 29, 2007 by VJ Troll

[Hilarious Clinton 452]

I'll be in the market for a house in 7 months.

northern Cali?

op: so what is the topic again? oh yeah, that the market is bad. maybe not hit bottom yet. let's say that is true. what does it mean for currnt homeowners with no plans on selling anytime soon? maybe even never.

Daniel

:energetic:

Actually WA state (Richland). I'm done with Cali.

[Mr. Big Dog 10,747]

what does it mean for currnt homeowners with no plans on selling anytime soon? maybe even never.

Besides a possible change in your neighborhood dynamic, nothing.

My neighborhood is changing rapidly. Last night, for the first time in the years I've lived here, there was a streetfight. The kind of people who engaged in the fight didn't exist in this neighborhood when I moved here. Today, they do - they are tenants, the product of homes that did not sell in this slow-moving market and were offered up as rentals instead.

That just sucks.

[w¡n9Nµ7 §£@¥€r 123]

Yes. It does. It's amazing how quickly and drastically this community has changed.

[brtlmj 0]

op: so what is the topic again? oh yeah, that the market is bad. maybe not hit bottom yet. let's say that is true. what does it mean for currnt homeowners with no plans on selling anytime soon? maybe even never.

Very little, unless they:

- want to refinance

- want a home equity line of credit

- are about to retire and want to take a reverse mortgage.

[dalegg 143]

Hopefully it means we can finally attract some talented engineers and I.T techs to California and fill some long overdue vacancies!!

Edited July 29, 2007 by dalegg