Posts Tagged ‘economy’
Global Finance
January 11th, 2010
Question: where will the US housing market lead the global finance?
Answer: down until it hits a leveling off point and will start back up -- no i do not know what that point is. grab your butt and prepare for a rough ride
Ron Paul on the Global Financial Crisis
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Inside Mortgage Finance
July 1st, 2009
Question: Should I sell or refinance with little to no equity?
I own a condo, and because of 2 unexpected job layoffs, my career has taken me to another town, & do not plan to relocate back. I currently rent it out, but my renters plan to move at the end of summer & are not interested in buying.
I bought the place in early 2003, and financed it 100% through the creation of two mortgage accounts---70% is on a APR loan currently at 5.75% and the rest is on a high (8.25%) fixed rate. The variable one kicks up next year to a higher rate.
To make matters worse, the property has not risen in value at all in these last five years. The property is in a decent area inside I-285(Atlanta) & there is a chance that a nearby mixed-use development project is going to happen, so perhaps the value might go up a little in the next couple of years.
But can I afford to hang on, or should I go ahead and sell, knowing that I may have to shell out a few thousand to unload it, or would I be better off refinancing and re-renting it for a few more years?
Answer: Very very hard question here. I personally would cut my losses now and sell and get out of that variable. However, if the amount you owe could be rolled into one 30 year fixed at the current rate of 5.5%, then you could try to hold on for the equity and a profit at sale. Renters are such an iffy prospect as fully 10 % of every group trashes your property. As you are an absent landlord your chances of that are higher and then you lose again. I personally would sell in your situation.
Two Years Away from Reaching Commercial Real Estate Rebound