Posted on: 14th May, 2009 06:09 am
i've got a mortgage of about $200k that i'm paying on on a house worth about $500k.
i'm due to refinance (as i'm on a 5/1 that is resetting) and i'll move to a 30 year fixed.
but, with all the issues in the housing market, and the reduced settlement that people are receiving, i'm wondering whether i should try to payoff my house.
i have about $150k in cash available. but, i wouldn't burn all my cash, unless there was a substantial reason.
does anyone have any thoughts about this? would i be able to get reduced settlement even if i pay off my house? if so, how much?
again, i'm never late on payments. i have a job. my total mortgage is less than 20% of my net monthly income.
it seems like a lot of people are getting to take advantage of the housing burst who were bad managers of their money. it seems a bit unfair that i don't get to take advantage of it.
thanks!
i'm due to refinance (as i'm on a 5/1 that is resetting) and i'll move to a 30 year fixed.
but, with all the issues in the housing market, and the reduced settlement that people are receiving, i'm wondering whether i should try to payoff my house.
i have about $150k in cash available. but, i wouldn't burn all my cash, unless there was a substantial reason.
does anyone have any thoughts about this? would i be able to get reduced settlement even if i pay off my house? if so, how much?
again, i'm never late on payments. i have a job. my total mortgage is less than 20% of my net monthly income.
it seems like a lot of people are getting to take advantage of the housing burst who were bad managers of their money. it seems a bit unfair that i don't get to take advantage of it.
thanks!
If you have $150k in cash, then I would consider purchasing an investment property. For example, let's say you bought a condo cash for $150k and rented it out for $1000 per month. You could take that $1000 per month to pay down your $200k loan. Eventually, you would own two properties in full and would have built more wealth than if you simply paid off your existing loan.
not a bad thought, eric. way off-topic but useful nonetheless, because it's clear that our guest hadn't thought of it before.
as for trying to bargain with a lender for a reduced payoff figure, that's a novel concept, isn't it? but unless you're in trouble with your home or your mortgage, there's no lender who would consider such a thing.
as for trying to bargain with a lender for a reduced payoff figure, that's a novel concept, isn't it? but unless you're in trouble with your home or your mortgage, there's no lender who would consider such a thing.
