So, I'm sad to admit that we were duped and are now part of the "sub-prime" homeowner debacle. We thought we would move in 5 years, so we got a 5-year adjustable rate mortgage (ARM). We would pay a smaller monthly payment for 5 years at a low rate and then it goes up. We weren't concerned since we knew that by July 2009, we would be out of Provo.
Well, despite my diligence in understanding EVERYTHING about buying a house, we trusted people and that was our downfall. It turns out, we got a 3-year ARM and our interest rate goes up in September. Booo!
Now, we will not be like those people who are losing their homes in CA, because our home has more than $60,000 of equity in it (the exact same house next door just sold in 4 months) and James will be starting a full-time job next month.
All in all, we could
1) refinance (so we could stay, but we'd still only be here for another year at most) or we can
2) sell and move.
We can pay the increasing rate ok once James gets a job. If we move, do we go to an apartment? Do we move to Barstow to work until James gets into a grad school? Do we move to Bountiful and hang out with Kar, NYC for the fam, or DC for "going home" sake? OR, we could go to Kansas and hope that's where Joe and Marsh move. Hmmm....
I would appreciate your opinions. A major move is kind of scary, but if we're going to move in the next year, why not get a move out? Ugh. I'd appreciate you're advice since this is our first home...oh wait, only mom and dad have bought more than one... and cause maybe we'll come live near you! Get your dibs now! :)
I look forward to your comments!
4 comments:
I call dibs! Jalea will be all mine! (Cue evil laugh)
If things go well for us, which they may easily not, we would like to buy a house with a mother in law apartment for guests to stay. We would love for Jalea to come live near us or with us until they figure things out. How I love her help with girls. And James and Jon get along great. We will support you in whatever you do.
Careful with the refinance, because the fees can exceed the extra interest you would be paying. The general guideline is don't start or refinance a mortgage if you will be moving in less than 3 to 5 years.
Good luck!
(P.S. For some reason I can't convince Google that I'm Jon, not Jack. Jack is a pseudonym for a blog I created a little while back.)
- Jon
I wish I knew anything about housing & buying & such but since I live here (for at least another year) I want you to be near me- I haven't seen you IN like a week- aren't you done with that book yet? HAHA!
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