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My house has finally disappointed me

May 9th, 2011 at 01:01 pm

The inevitable has happened: today I owe more than my house is worth. The fact that it took this long for the down housing market to affect my neighborhood is the only thing that surprises me. Guess I'm fortunate that I don't plan on selling anytime soon.

Like many others, I'm kicking myself for not purchasing my home with at least 20% down. I know that it wouldn't have changed the drop in value, but I'd still be ahead in equity. More importantly, I wouldn't be trapped if I had (or wanted) to move tomorrow.

In spite of the bad mortgage news, my plan is to continue paying down consumer debt. Once completed, I will need to decide what is more important: begin paying down the second mortgage (fixed at 8%) or save up cash to put down for our dream home whenever we are in a better position to do so.

Posted in Debt | 5 Comments »

5 Responses to “My house has finally disappointed me”

  1. Joan.of.the.Arch Says:
    May 9th, 2011 at 03:01 pm 1304953314
    1304953314

    Did you have your house appraised?

  2. mskills Says:
    May 9th, 2011 at 03:47 pm 1304956029
    1304956029

    Joan.of.the.Arch,

    I had the house appraised recently, and it corroborated nicely with the average of the online home value sites. The house has been on a downward trend since March of this year and doesn't appear to be stopping.

  3. Petunia 100 Says:
    May 9th, 2011 at 04:48 pm 1304959723
    1304959723

    Imagine how you might feel if you HAD put down 20% but were still upside down. I don't have to imagine. Wink

  4. whitestripe Says:
    May 11th, 2011 at 02:20 am 1305080452
    1305080452

    I haven't read all of your blog, but are you considering selling? Your houses value shouldn't really affect you if you aren't - it will eventually increase in value. Mentally, yes I am sure it feels crap to owe more than it's worth - but when you took out a mortgage, it was with the intent of paying a certain amount for a piece of property for XX amount of years. It is only really a problem for you if you intend on selling your house immediately.

  5. Jerry Says:
    May 14th, 2011 at 08:46 pm 1305405988
    1305405988

    We are in a similar boat... our house has depreciated over the past few years and it definitely leads to some stress. Still, at least we have the place, we can rent it now (while we live overseas), and it will be there when we return. Paying the mortgage and insurance and taxes is enough to keep somebody awake at night, though, if they don't have the luxury of enough income.
    Jerry

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