Tuesday, February 07, 2012

No Refinance Under Obama's Plan...

I am a little...no REALLY BUMMED!!!! I was looking into refinancing my mortgage under Obama's new plan with Bank of America but due to the new Bank of America guidelines, refinancing my mortgage wouldn't have saved me a thing and it would have taken years to break even. At most, it would save me about $60/month as my rate went from 5.875% to 5.25% but it would have cost me almost $2k in fees. Where is the deal in that when rates are so low?

The biggest reason I am so bummed is that my student loan payments are going from $1,162 to $1,410 in June and I needed to try to find somewhere to save and offset the increase. BUMMED!!!

So my credit score is through the roof (800), I have never missed a single payment to anyone EVER and I can't qualify for a lower rate because the market values have tanked, there is virtually no market for selling condos in the Chicagoland area and I went to school to invest in my education and my monthly student loan payment is higher than my mortgage payment and my assessments included!!! So is this why people walk away from their homes? I owe about $120K on a property that may be worth $70K.

Okay....Bummed!!! BUT....Thankful I can still meet all my monthly obligations!!!


Anonymous said...

Hi -- I would stay where you are. Your monthly mortgage isn't too far from what the cost of renting a place would be. Historically, the interest rate on your home isn't too high (compared to the 1980s). While Bernanke is going to hold interest rates down until 2014, afterward you can expect it to rise rapidly, and you'll have a fixed mortgage under 6%, which will be great. You haven't bought too much house so you're actually in a good place. Best wishes to you.

Ms. S said...

Oh man!! That's a hefty student loan payment. I am sorry to hear that you won't be able to refinance your condo. Sucks! I hope that a break comes your way post haste! Many blessings.

Anonymous said...

Interesting that the condo market isn't that great in Chicago...I thought that would be one of the few places that had a GREAT condo market (since single-family homes seem so expensive).

I hope things work out for you! Glad to see you blogging regularly again. Yours was one of the first PF blogs I started reading, many years ago!