Posted on 03/28/2016 6:36:42 AM PDT by Lorianne
This time it will work.
Obama/Yellen must be getting anxious to avoid the R-word. Can’t compel the sector to fake numbers, print money, and buy your own stocks forever.
A friend of mine that lives down the street bought a home for $180k and put $40k down. After a few years of HELOCs while the market was rising she lost her job. She decided to sell the house and she and the real estate agent decided the price needed to be $349k for her to break even on it. n She has now been almost foreclosed on twice. Once she was bailed out by her bank, they lowered the payments to an interest only loan, and then by Keep Your Home California.
She redid her kitchen, her pool and bought 2 cars with the HELOCs.
I was trying to talk her out of all of it while she was doing it. She wouldn’t listen.
Can’t cash out in Texas. That’s the fail safe.
However, let’s say you have a 30 year fixed loan at 6%. You can refinance for 3.25% take 40k to do upgrades or whatever and have the same monthly payment. If you are not worried about when your loan will be paid off or your new monthly payment why wouldn’t you do it?
Depends on where you are at in the loan. We refinanced once 15 years ago to a 15 yr loan. Didn’t take out any money, just refinanced the loan. Wasn’t long until we were at a place where any refinance or loan didn’t make any sense. Our house is paid for now and we have no payment except property taxes. This was during the same time period she was doing her thing. Her house will never be paid for now and she acknowledges that if a financial catastrophe comes she can do nothing but walk away and rent.
This s good news right? I mean, what could possibly go wrong?
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