I saw this article this morning:
This is the sort of article which makes me think I should strongly consider buying another house and let mine go into foreclosure.
If I were to buy another house worth 125k (roughly what mine is currently worth), put down 20% + closing and take a 15 year mortgage @ 3.75, my PI payments would be $727.22. Currently, I have PI payments of $1060.23 and have 26 years to go. That is a HUGE difference.
August 22nd, 2011 at 05:28 pm 1314030522
This part I don't get:
"Simon also points to the affordability index, which measures the ability of a family with the median national income to buy a median-price home at current mortgage rates. The index is near an all-time high and double its level in 2006 at the peak of the bubble."
Basically saying houses have never been more affordable. I suppose it depends on the region. It's kind of my issue with the local real estate market. Everyone's running out for these "rock bottom prices" but as a 35yo (on the young side) I am not personally impressed. Even when factoring LOW interest rates. As with everything, I do tend to look more at prices than the price to finance. So maybe I am missing that the masses are trying to say "on a monthly basis, homes have never been more affordable." Interesting. I suppose that is true, but I am still a "big picture" gal - even when it comes to homes! For one, I didn't have to buy right now to refinance my home at a rock bottom rate!
August 23rd, 2011 at 09:36 pm 1314131799