I really wonder about this in SoCal.esoteric said:When the foreclosures are well into swing, I might upgrade...
Adjustable Rate MortgageMrX954 said:Okay I'm dumb and still live with my parents so what is an ARM?
HA ha ha ha ha!MrX954 said:
Yep, but that won't happen, until rates have gone way up for a while. Probably over a decade.MrX954 said:
Nice.nedro said:BTW, I just sold my four-plex. Escrow closed last week. I'm now positioned to swoop down like a vulture as soon as the fire sale starts. This is gonna be a killing.:thumb:
I know you know this, but for other, and you are sure you can sell in 3 years.BDA116 said:Or if you plan to sell your house in three years and can get in an ARM at 4%, then do it. But only if you know for sure you're selling. Otherwise it is a bad gamble.
Yeah, should have stated that I guess.luvtolean said:I know you know this, but for other, and you are sure you can sell in 3 years.
If the prices drop, lots of these people won't be able to. That's why I talked about appreciation so much above.
There's a reason a traditional mortgage wants a 20% down...that's the buffer for house prices falling. If you don't have that 20% in liquid assets (or equity) you're in a risky position.
Yes but the change is not instaneous. Thus the rise and fall are both damped to some degree (depending on the contract terms) However if you are a fixed rate you can refinance (some cost) while if things rise your cost does not.MrX954 said:
Thats a fact! You want your equity to go up but your assesed value to go down so they can't soak you with more property tax. Although they seem to be doing the max where I live regardless.HondaGalToo said:If the prices of houses drop, too bad my property tax wouldn't go down. I'm sure the town will find a way to keep reassessing me and raise it, even if the amount I could sell my house for decreased.