Who else is "slightly underwater?"

[Avalon08]

Originally Posted by middle-aged mom

The 90's represented a serious rough patch in the real estate market in many areas of the U.S. History is loaded with similar patches and yet a blip in time convinced a lot of people that values would continue to at double digit rates, forever. That's mania.

The stock market outperforms real estate, over time. We cannot live in our investment portfolios.The alternative would have been paying rent for 25 years a with no shot at recovering a dime. I know you get the long term perspective.

Well, nah, not really. All I know is I've spent way too much money on realtors' commissions, movers, and furniture. These were not "investment" moves, they were just moves because I get antsy after a few years.

Anyway, I just consider myself lucky that I haven't had to sell at any huge losses...so far.

[TimtheGuy]

Originally Posted by highlife2

Refiance fees are non trivial and unless you have substantial equity you will have to bring a 5 figure check to "closing". Also you are trading a slightly lower monthly payment for a loss of time paid on the mortgage.

Seeing as how outragious the refi fees are I dont see how it could ever be in someones best interests to refi, unless you shaved off like 5% points and even then it would take you several years to recover from the loss that you incured from the fees.

I read an article on the internet that the fee structure was diliberate to prevent people from lowering their interest rates and liabilities. Its not good for the banks if someone can lower their interest rates without the risk of having them rise (ie varialbe rates).

The banks are not your friends.

Huh...I locked in two refinance loans yesterday at 3.5% on a 15 year FIXED rate with ZERO closing costs. That is correct....ZERO. Breakdown....they owe $200k today, the new loan amount will be $200k and the borrowers will have to bring ZERO dollars to closing (they don't escrow for taxes and insurance). They can receive the same deal at 4.25% on a 30 year term. They are shaving about 1% off their current rates. Even if it was 1/2% it pays when the costs are ZERO.

Oh, and we the lender, are ECSTATIC to do these loans and lower their FIXED interest rates.