sidewinderx7

Also have to remember about the realestate bubble... We're already seeing a lot of backlashing here in the seattle area. Lots of houses are being appraised lower than what people are buying them for. Lots of negative equity from the start. lol

Sinful7

Yeah, that's the case here too. Denver is overvalued by about 8%, which means that assuming normal appreciation, what I paid for the house two years ago won't be what it's worth for another three years or so! I'm screwed.

sidewinderx7

ouch

phinsup

ii am gonna refi and toss another 50 or 60k at my mortgage, need to do it quick!!!!

sidewinderx7

pay it off as quickly as possible!



I feel bad for all the sinfuls of the world that bought at such an inflated time. Not a buyers market, that’s for sure. I was watching a couple interviews on CNBC with some representatives of some big banks in the US that were doing zero down loans with low to no interest. One of the major concerns with that is once the interest rates climb a little bit, all the folks that bought on no money down style loans are going to be getting raped. Most won’t be able to afford their homes and will have to sell, but since a lot of the homes have a negative equity and the bank hasn’t received enough money to compensate its losses (because of the 0 down) there will be all sorts of issues.



One thing is for sure though, the real-estate boom is slowing down in most areas and people are realizing how much they got fucked over. Lets just hope people can continue to pay their premiums on their credit card debt at least …. Or then we’ll have some real problems… haha

Rob x-7

the thing with a well set up ARM loan is it gives you the money right away to invest in the house by deferring the interest.

Your still getting charged the interest-just later on.



The only way it screws you is if you throw your money out the window instead of improving the house or investing in something.

The theory is that if the rates go up your investments are going up too.

If you improve the house- then its worth more.



The other way it could screw you is if you want to sell the house right away, the mortgage guy should have told you that its really not for people who think they may get rid of the house in less then 5 years because with the interest being deferred you actually owe more on the house in 2 years- but you PAID less- so again, as long as you didnt waste your money your still ahead of the game.



The other theory is that housing values will go up at least 3% every year, if the values in your area start to go down some and you bought your house at the height of the boom then you just have to look at it as being in it for the long haul



Now commercial loans are a whole different game- you dont have much choice when it comes to that.

j9fd3s

housing prices are actually dropping around here.

Sinful7

My only saving grace is my location. With traffic volumes increasing two fold over the last 6-8 months, and the north Denver area being the focus of the affordable housing boom, I predict that my proximity to the downtown area will pay off. Not to mention, I'm a block from an express bus stop, I'm five miles from the only permanent HOV installation in Denver, and there's a planned light rail route with a stop within a mile of here. A lot of folks thought it'd be a good idea to buy north of me, where $210k buys more house, but now they have to deal with an extra 5+ miles of the third worst traffic area in the city. As it stands, it's perfectly feasible for me to take the bus to work, regardless of the weather or road conditions, and that's an option I take regularly. I'm just waiting for redevelopment in my area. Actually, that's not a bad idea.. Maybe I'll pitch the idea to a developer! Wewt!