Blub...blub...blub... :)
We didn’t buy more home than we could afford, fifteen YEARS ago; more than half-way paid off, due to just throwing a few extra bucks ($25) on the principle each month.
What a concept. ;)
“We didn’t buy more home than we could afford, fifteen YEARS ago; more than half-way paid off, due to just throwing a few extra bucks ($25) on the principle each month.”
Well gee some people haven’t been able to stay in the same location for 15 years and had to buy at the inflated rates or rent an apartment.
You can be “underwater” on your mortgage without having bought more home than you can afford. Many that are “underwater” are still able to make their payments, it just means their houses (due to falling prices) are now worth less than they paid for them.
This has happened to quite a few young couples I know. They bought a home a few years ago (during the boom) put 20 percent down, but prices have fallen around 25-30 percent in our area, so they now owe more than their house is worth.
They’re still making their payments and intend to do so, yet they’re still “underwater” on their mortgage.