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My daughter and sil have a interest only first mortgage and a second. I do believe that they have had the first morgage for three years and I am sure that it will soon convert to a regular mortage soon.They live in Ca and bought a home 6 years ago for $400,000 but have kept refi that loan and that is why the interest only and second. SIL makes about $70,000 a year and daughter is a stay at home mom though she should have been working to help out.I know I always did.How worried should I be? the way the banks are tightning their loans I am sure daughter and sil cannot get a reg mortgage did I also mention that the price of homes are also going down there.A year ago their place was wort $650,000 and now it is worth about $545,000 and I am sure between their 1st and 2nd they owe more.I tried talking to her and she doesn't get it. She has blinders on .How can I make her see.SIL is a great guy and a hard worker with a steady job and I am sure he knows or I hope he does. Any suggestions?
My daughter and sil have a interest only first mortgage and a second. I do believe that they have had the first morgage for three years and I am sure that it will soon convert to a regular mortage soon.They live in Ca and bought a home 6 years ago for $400,000 but have kept refi that loan and that is why the interest only and second. SIL makes about $70,000 a year and daughter is a stay at home mom though she should have been working to help out.I know I always did.How worried should I be? the way the banks are tightning their loans I am sure daughter and sil cannot get a reg mortgage did I also mention that the price of homes are also going down there.A year ago their place was wort $650,000 and now it is worth about $545,000 and I am sure between their 1st and 2nd they owe more.I tried talking to her and she doesn't get it. She has blinders on .How can I make her see.SIL is a great guy and a hard worker with a steady job and I am sure he knows or I hope he does. Any suggestions?
In two words, "Let go!"
They both sound like two responsible people and whatever comes, they will handle. In the meantime, quit worrying about something that is beyond your control... I know as a parent you are concerned and only want the best for them... but they are adults... and will make good/bad decisions... just like we did at their age. You cannot stop this process... and will only be considered as interfering if you give unsolicited advice. Be there if they want to discuss it... and only give advice if they ask for it. Other than that, go on with your life... stress-free from this worrying... and know your job is not only done... but well-done it seems!
So I quess what you are saying is I shouldn't worry.I have never given them any unwanted advice but I fear they might lose the house.I am only the mom though so I should say nothing right? If they were two responsible people they would have bought within their means and a 20% down or am I wrong? I am sorry can't help worrying.
So I quess what you are saying is I shouldn't worry.I have never given them any unwanted advice but I fear they might lose the house.I am only the mom though so I should say nothing right? If they were two responsible people they would have bought within their means and a 20% down or am I wrong? I am sorry can't help worrying.
They probably don't need you to give them advice as much as they need you to give them money. Interest only mortgage? That means they're not paying down the principle. At least they really have nothing to lose since they aren't close to owning the house. Interest only can get you a much nicer place than you could have rented though.
They probably don't need you to give them advice as much as they need you to give them money. Interest only mortgage? That means they're not paying down the principle. At least they really have nothing to lose since they aren't close to owning the house. Interest only can get you a much nicer place than you could have rented though.
$400.000 several years ago in the SF bay area does not buy you much.They have 4 bedrooms and maybe 1300sq ft. They do have a big yard though pie shape back yard great for the kids.
$400.000 three years ago in the SF bay area does not buy you much.They have 4 bedrooms and maybe 1300sq ft. They do have a big yard though pie shape back yard great for the kids.
I know I've heard about the housing costs in California -- but there are people losing homes there and seeing home values drop.
They might be better getting out before it's too late if their home is already dropping in value because then you end up paying more for the mortgage than you could ever get back. Or there are people who are foreclosed and still owe money.
The good thing is that in an interest only mortage -- what could they have lost? That's like paying rent with certain advantages.
I know I've heard about the housing costs in California -- but there are people losing homes there and seeing home values drop.
They might be better getting out before it's too late if their home is already dropping in value because then you end up paying more for the mortgage than you could ever get back. Or there are people who are foreclosed and still owe money.
The good thing is that in an interest only mortage -- what could they have lost? That's like paying rent with certain advantages.
You are right but what about the 2nd mortgage that is not interest only.They got that 2nd when their home was appraised in The $600,000's. It would devestate my daughter if they lost their home since they have lived in that area for for 15 years and the kids have gone through k-(one of them is in 10th grade" I am sure things will work out though but I do remember the late 80's when we bought a home for $350,000 and a few month later it was worth only $300,000. We did not care since we planned on staying there and we had put 20% down on a 30 year mortgage. That house didn't go up until 97 and by 98 was worth $70,000 more then we paid for it again that was CA. But it took 8 years.
Don't bail them out - will never learn. Agree with others, let go.
That will not happen and you all are right will let go but I am a Mom and I cannot help worrying.
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