Decisions, we’ll never know the outcome till we make a choice. Like in the next four to five months, I maybe making the worse or the smartest decision ever. Ow golley! Time is indeed running out for me. So the other night over Thanksgiving dinner, I decided to discussed financial matters with my father. Being a good businessman that he is, I was asking for his opinion and recommendation on how to deal with this forthcoming unfortunate event.
You see, my home mortgage is due for refinancing this coming June. And with the current interest rate, I may end end paying more of what already feels like a huge truckload for me. I guess, I didn’t anticipate the market to be so downcast and adverse. What I thought at first was a sound investment, will soon turn out a financial dilemna. I know what you guys are going to say, that I’m one horrible accountant! And you are right.
Dad wasn’t sure at first where our conversation was heading, but soon as I mentioned the word mortgage and interest rates; he started nodding his head. I told him how I had two loans on my house, and had already refinanced my first mortgage (and even able to take some money out to purchase the other house in Oregon). However, the second one will wind up a problem. Seems like my broker is unable to give me a reasonable rate, even with my good credit history. Most of the figures he showed me was way beyond what I could afford. The market is indeed in bad shape, real estate biz here in California has taken such a huge downfall cause of high interest rates. And now I’m in the same sinking boat.
Dad asked me why I only refinanced just one, and told him about my pre-penalty provision, which he understood right away. Interest rates are high, that I found myself almost convince that if I’m unable to get any acceptable rate offers; I may end up putting my house on the market or at the very worse, surrender my home to the bank. Not the most ideal thing to do, but I’m not about to spend my whole month’s paycheck on just a roof over my head. It’s not going to happen, I may as well give up the house and cry over my paucity. I have other financial responsibilities and one life to live. But still, thinking about it makes me want to cry in disappointment. However, I’m still very hopeful that something good might happen between this time till June.
You think interest rates the only issue. Heck no! There’s this other refinancing requirement banks are asking for, they are dictating for ten percent downpayment to push the interest rates down. But where in hell would I be getting $65K? At first, I thought they were kidding. But they’re not, they mean it, and they mean business. And there’s no haggling either!
Dad was quiet the whole time I was talking, I knew he was trying to come up with a good and sound advice. My father have to agree that this is truly not the right time to refinance my house, and that I’m screwed with the $65K down payment. It’s one big chunk of money, I don’t have! Dad was very kind to offer lending me the down payment, but after doing my own math — I politely declined. There is no way I can pay my father that sum, and I don’t want to owe anyone any money. It’s not that I’m too proud and unwilling to accept any financial assistance, but because of the mere fact that I don’t see it feasible paying my father back in the long run. I did show Dad my computations and like me, he seems convince that I should just surrender my property to the bank if I’m unable to refinance.
I have never lost this much money in my whole life and I hope I never will. My parents have raised us well to know how to bank smart. But then again, I cannot blame myself for this unfortunate event. I don’t mandate interest rates, taxes and other tarriffs. Base on my figures, my total lost would be somewhere between the mid 30’s. Some wampum I could have invested in my 401K or retirement account instead of gambling with real estate. It’s one tough lesson learned and I would hate to repeat the same mistake with my Oregon home. Looks like I’m moving sooner than planned. So, I maybe going Bye Bye Golden State — Hello Beaver State! Of course, I will dread the day I leave this house here in the East Bay. I guess my only consolation from these horrible experience is that I still have a home, and a place to call my own. Just in Oregon though!