Home Buying in Abington>Question Details

Abington01, Both Buyer and Seller in Abington, PA

Hello. I have started refinancing my home mortgage because of the current low rates. But I've been wondering if it's better to sell and

Asked by Abington01, Abington, PA Mon Oct 12, 2009

buy instead. I paid $213K for my house in 2006 at the height of the bubble. The Philadelphia area wasn't very hard hit. I had a recent appraisal this summer of $216K (but with a lack of comps in my zip code)
I have $204K remaining on my mortgage (I only put a very small amount down - probably can't do that anymore)
During some informal internet searches, I have been finding homes with similar properties to mine in surrounding areas. Some of them are as low as $170K.
Should I refinance, or sell my current home and buy elsewhere? Is there any way I could do this? I don't have much saved at the moment and the 2 transactions would be 2 sets of closing costs. And agent comp would cut into my revenue from selling the current home. I will probably leave this home in about 5 years either way for a more child safe neighborhood (I have no sidewalks)

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Abington01,

Those 100% mortgages are gone now and I think that is a great thing for everyone. Yes, it did help you to get into your home and that is a great thing but in my opinion, people who do not have any money to put down on a home or for closing costs, should not be buying homes. There are a lot of people now who have purchased homes with no money that are now losing their homes.

People need to go back to basics. Have a job, have savings, great credit and work hard for their homes. Prices never need to be as inflated as they became. Homes should be affordable.

I believe the market we are in now is great.

If you don't have to move and you can afford your payments every month, stay in your home. Keep the home updated and by that I mean your kitchen and bathrooms. Keep the roof in great shape and make sure your heating and air are all maintained and you will be able to keep the value of your home.

If the homes around you start to lose their value, that will impact you so make sure to stay on top of the market in your area. Find a Realtor that you can depend on and call on to get information quickly and who will stay in touch with you. When it comes time to list and to buy, you will have your Realtor and won't have to scramble to find someone at the last minute.

If there is anything I can do for you, please do not hesitate to contact me and I will be happy to speak with you,

Renee Porsia
Associate Broker
RE/MAX ACTION
(215) 669-0589 Direct
(215) 358-1100 Office ask for Renee
http://www.reneeporsia.com
0 votes Thank Flag Link Tue Oct 13, 2009
You should contact a mortgage broker, them decide whats best for you.Please contact me for more information, also if you need the name of good broker.
TRESSA ARCHER
KELLER WILLIAMS REAL ESTATE
766 OLD YORK RD
JENKINTOWN, PA 19046
tressaarcher@kw.com
215-439-1672
0 votes Thank Flag Link Fri Oct 15, 2010
Well now you can qualify for a FHA mortgage (pending talking to mortgage professional) which would mean you need 3.5% down to buy a home. Your closing costs can be "assisted" into the mortgage meaning they are added to your mortgage amount. The only catch here is that the home appraises for the full amount. So say you buy a house for $100,000 and the closing costs are $5,000. Your total purchase price is $105,000 less your downpayment. It must appraise for that amount.
0 votes Thank Flag Link Tue Oct 13, 2009
We will be moving anyhow when we start a family (maybe in 4-5 years). My time at my current home is limited. If I moved now though, I wouldn't have to then. Houses I've been looking at are in areas we would want to be in for that purpose.

Yes, a refi would save a lot of money. Either way I want a new mortgage, either from a refi, or from moving.

What I really need to know is if it's financially possible to move given my circumstances above. Even though I am looking at cheaper houses, I don't think I will get enough from the sale of my current home to put down on the cheaper house and pay closing costs + comp. I bought my current house at a time when I could get 100% financing. I don't think that's possible anymore. Leading to the seemingly paradoxical conclusion that I can't afford to buy a cheaper house.
0 votes Thank Flag Link Tue Oct 13, 2009
What is your reason for moving? Do you really need to?

Depending on what your mortgage rate is now, would a refi save a lot of money? I would contact a few mortgage professionals and see what a refi would look like for you.

As Renee said, if you dont need to move then why move?
0 votes Thank Flag Link Tue Oct 13, 2009
Hello

Well, I would say that that is a tough question to answer. Your home is only worth what it is worth and the comps need to be there to support the value. If you get enough to pay off your mortgage and you find a home that suits you better then that would be great.

Most home owners think that they need to make a killing when they sell their home and that really isn't what owning a home is all about. Sure, nobody ever wants a home to depreciate but the best situation would be buy a home that you love in the area you want to live in and when you sell it, make enough to pay off your mortgage. A better situation would be to have a little left over after paying off your mortgage.

Due to all of the inflated home prices that everyone experienced over the past many years, home owners are needing to bring money to the table in order to pay off their current mortgage.

If you don't have to move or really want to move, stay in your home if you love it. If you can get a lower rate and reduce your monthly payment, do that. Just make sure you are not paying a lot of junk fees when you do refi. Remember, there are no free mortgages or refis. The banks will make money off of you one way or another.

Renee Porsia
Associate Broker
RE/MAX ACTION
(215) 669-0589 Direct
(215) 358-1100 Office
http://www.reneeporsia.com
0 votes Thank Flag Link Mon Oct 12, 2009
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