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Maybe people like the house they're living in? Everyone seems to be talking about the financial side of things, but isn't it likely that many of the people stil

by kylec 17y ago

Maybe people like the house they're living in? Everyone seems to be talking about the financial side of things, but isn't it likely that many of the people still paying their mortgage do so because they like where they're living and don't want to be foreclosed on?

adharmad 17y ago
Exactly.....something that i never understood in all these articles is this: If I have bought a home for living in it, and not for speculation, how does it matter what its market price is? I knew _before_ I bought it what I will be paying the whole way and I don't want to sell it.
- chrisgoodrich 17y ago
  Absolutely. I think this is the root of why most people do continue to pay their mortgages. If you can afford the payments and are satisfied with where you live, then there is no reason to abandon your mortgage. Then there's the other group who (a) can't afford their mortgage anymore or (b) want out. This is the group who should evaluate this as a financial contract and evaluate the risks/benefits of abandoning the mortgage.
chengas123 17y ago
But you're not going to be living there for the entirety of your 30-year mortgage in most cases. What happens when 5-6 years from now, you want to move, but you're underwater and can't pay off the mortgage by selling your house?
- lanaer 17y ago
  If you're able to afford the payments, and are otherwise financially stable, I'm not entirely sure how another 5-6 years will worsen things. Unless the economy manages to crash again in that time, and worse. Then, though, you'd probably be in a crappy situation even if you left now. More than likely, at this point, your house will be worth more (though probably not a lot more) than it does now, and (since you've been meeting your payments) your debt will have shrunk, too.
- kls 17y ago
  My personalty belief is that it will be 15 before prices recover to the peak in some areas, and if I where in a situation where I would need to relocate in five, I would take the hit now so that I would be on the road to recovery. Hell if most had did it in 06 they would most likely be able to get a mortgage (albeit at a higher interest rate) by now. Specifically, Vegas, Arizona or Florida I would have had to do some soul searching , if I where not going to be there for over at least 10 years.

by kylec 17y ago

adharmad 17y ago

Exactly.....something that i never understood in all these articles is this: If I have bought a home for living in it, and not for speculation, how does it matter what its market price is? I knew _before_ I bought it what I will be paying the whole way and I don't want to sell it.

chrisgoodrich 17y ago
Absolutely. I think this is the root of why most people do continue to pay their mortgages. If you can afford the payments and are satisfied with where you live, then there is no reason to abandon your mortgage. Then there's the other group who (a) can't afford their mortgage anymore or (b) want out. This is the group who should evaluate this as a financial contract and evaluate the risks/benefits of abandoning the mortgage.

chengas123 17y ago

But you're not going to be living there for the entirety of your 30-year mortgage in most cases. What happens when 5-6 years from now, you want to move, but you're underwater and can't pay off the mortgage by selling your house?

lanaer 17y ago
If you're able to afford the payments, and are otherwise financially stable, I'm not entirely sure how another 5-6 years will worsen things. Unless the economy manages to crash again in that time, and worse. Then, though, you'd probably be in a crappy situation even if you left now. More than likely, at this point, your house will be worth more (though probably not a lot more) than it does now, and (since you've been meeting your payments) your debt will have shrunk, too.
kls 17y ago
My personalty belief is that it will be 15 before prices recover to the peak in some areas, and if I where in a situation where I would need to relocate in five, I would take the hit now so that I would be on the road to recovery. Hell if most had did it in 06 they would most likely be able to get a mortgage (albeit at a higher interest rate) by now. Specifically, Vegas, Arizona or Florida I would have had to do some soul searching , if I where not going to be there for over at least 10 years.