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More Wonderful Housing News

August 22nd, 2011 at 04:49 pm

I saw this article this morning:

Text is http://money.msn.com/home-loans/housing-horror-worse-than-you-think-marketwatch.aspx and Link is
http://money.msn.com/home-loans/housing-horror-worse-than-yo...

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.

2 Responses to “More Wonderful Housing News”

  1. MonkeyMama Says:
    1314030522

    Great article. (It's rare to see this reality being acknowledged. It seems clear as day to me that the foreclosure tsunami in our own city is far from its end, and I See still bubble buying behavior - $0 down loans, rushing to buy without thinking, etc. That's ALL I see. Like the people who missed out on the bubble are lining up to make the same mistakes as those before them).

    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!

  2. Looking Forward Says:
    1314131799

    I am certain there are people buying houses while they let their current home go into foreclosure. It's all so crazy right now.

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