Posted on: 10th Mar, 2009 02:09 pm
Bought house in Bay Area, CA in late 05. House value has plunged 41%. However, we've paid off 41% of the loan.. I know bad call.. we were trying to do the right thing by paying off debts..we didn't put much into 401k.. How much further will the price go down? Does it make sense to even keep paying it?
Hi helenna_us,
Whether the price of the property will go down or not will depend upon the market. It is totally upon you to decide whether you want to save the property or not. If you could afford to pay off the rest of the loan, then I would suggest you to keep paying it. But that does not mean that you should deplete your savings or pay from your retirement account.
If you feel that you won't be able to afford the loam payments in the near future, it's better to let it go. In that case, you can inform the lender about your hardship and check out if he could give you any option.
Take Care.
Whether the price of the property will go down or not will depend upon the market. It is totally upon you to decide whether you want to save the property or not. If you could afford to pay off the rest of the loan, then I would suggest you to keep paying it. But that does not mean that you should deplete your savings or pay from your retirement account.
If you feel that you won't be able to afford the loam payments in the near future, it's better to let it go. In that case, you can inform the lender about your hardship and check out if he could give you any option.
Take Care.
paying down your mortgage is never a bad call. You did the right thing... if you would have plowed the money into your 401k it would be worth even less than the 41% loss you have taken on the house.
But, if you don't plan to sell the house... and you want to live there... the loss is only on paper! Think of it this way... if you are happy there then you haven't lost anything. And, when the market bounces back (and it will) you will have a ton of equity to cash back in.
You are in a very good position right now, if you don't jump to quickly.
Not sure many will agree with me, but this is not the time for a hasty decision if you can afford to hold on.
Great job on paying down the debt, stay on track with that and you will be a happy debt free homeowner one of these days.
Best of luck!
But, if you don't plan to sell the house... and you want to live there... the loss is only on paper! Think of it this way... if you are happy there then you haven't lost anything. And, when the market bounces back (and it will) you will have a ton of equity to cash back in.
You are in a very good position right now, if you don't jump to quickly.
Not sure many will agree with me, but this is not the time for a hasty decision if you can afford to hold on.
Great job on paying down the debt, stay on track with that and you will be a happy debt free homeowner one of these days.
Best of luck!
I am seeing way to many posts from people who think they should walk away from their homes just because the owe more than the home is worth "right now".
If you can afford the payments, then stay. You have an obligation. The home will eventually rise in value. Renting will not help you either and rents are increasing too.
If you can afford the payments, then stay. You have an obligation. The home will eventually rise in value. Renting will not help you either and rents are increasing too.
