Is your house upside down?

**Frugal Doug** · 03-08-2008, 12:11 PM

Is your house worth less than your mortgage – so that it's upside down?

I read in our newspaper a few days ago that houses in US have lost an average of 10% of their value due to the housing slump.

Here's a hypothetical example of what this can mean. Let's say you have a $200,000 mortgage but because the drop in housing prices your home is now worth $180,000 (that 10% decrease in its value). If you were to have to sell your house for some reason, you would probably have to bring money to the closing -- which could put you in a real financial bind.

If you can stay in your house, say, three to five years, you should be okay. This is because housing prices should increase over the longer term.

But if you are interested in selling your house for any reason, to talk to a good realtor so you have a realistic understanding of its value.

Frugal Doug

**jvera** · 03-08-2008, 07:19 PM

We bought our current house six months ago and now the house is worth less than what we paid for it.

**FrugalMomof3** · 03-08-2008, 07:41 PM

Our home is worth more than the mortgage on it, thank goodness and we will be here for 5 years + so that's a plus as well.

**Samigirl** · 03-08-2008, 08:40 PM

Thankfully, our house is still worth more than our mortgage, even though we had to take out a second mortgage. We had a horrific year with medical issues & loss of work that contributed to that.

**Michelle68** · 03-08-2008, 08:41 PM

We bought our house about 6.5 years ago for $69,000 and it's now worth about $115,000. We definitely bought at the right time.

--Michelle

**mombottoo** · 03-09-2008, 10:50 AM

With the housing/mortgage market being what it is at this stage, I am so glad we paid off our house when hubby got his settlement. We had considered selling and building a one level. But, no can do now!!! Good thing I like my house.

**mommy4ever** · 03-09-2008, 02:53 PM

We purchased our home for $138K, we owe just over $100K. Our local market value is $400K. And we're not moving... The market has slowly been dropping here, but we bought before the market skyrocketed so we did awesome. We look at friends who are buying townhomes for over $300K and shake our heads. We have no idea how our kids will afford a house! Time to think of a commune..lol

**PAVallygrl** · 03-09-2008, 08:11 PM

Bought my house 2 years ago put 20% down and last month the exact same model (same upgrades and everything) sold for $20,000 more than what I paid for it. So far so good.

**Missourimom** · 03-09-2008, 10:50 PM

I don't even have a clue what the house is worth right now.

**PB&J** · 03-09-2008, 11:34 PM

We got a great deal on our house. We paid 103K for it in 2005. It was a foreclosure and for some reason, no one else would touch it. It had been for sale for quite some time with quite a few price reductions. (It started out for sale at 135K). It had some really ugly decor, but everything was purely cosmetic.

We have put about 10K into the house and it is now appraised around 145K. So we made a great investment.

My inlaws just sold their house. They bought it in 1982. They have taken out so much on home equity loans, ever after selling the house, they still owe almost 100K!!

**jamie79** · 03-10-2008, 08:09 AM

We bought in 2006 and our house is worth more. Not alot more but more. We also do something that I wish everybody did, then some of this mortgage crisis wouldnt be happening. We buy at the low end of our abilitys according to the bank

**stinkbug** · 03-10-2008, 12:42 PM

We bought 6 years ago....we're at about 50% equity, so I feel pretty comfortable.

**banana** · 03-10-2008, 01:15 PM

We bought back in 2002. We are lucky to have bought when we did cause prices skyrocketed here.

**FreesiaE** · 03-10-2008, 01:35 PM

I don't think it is, but how in the world would I even know?

**annymoll** · 03-10-2008, 01:53 PM

Our home is paid for, we bought around 20 years ago.It appraised for much more than the purchase price.We bought land several years ago- that has skyrocketed here.So far -good investments.