My current lender called me tonight about re-financing my mortgage. He said that he “had my file and base on his analysis he could lower my payments by $300/mo.” Now, given that I have a 30 year fixed rate mortgage with the first 10 years interest only payments (my plan being to ride out the current flutations in the market, get a few more raises and then refi to something more standard while paying more than the interest only monthly payment anyway), I thought this was an odd statement to make. Hmm..how did he figure that I asked?
Sales weasel: “Well, looking at the market in your area housing prices have been going up steadily.”
Me: “Oh really? Wow, funny because I was just reading an article in the main San Diego paper showing how prices have gone DOWN overall from sept 05 to now.”
SW: “Have you had your house appraised recently?”
Me” “Yes, exactly one year ago when went through a refinance into the loan which you have in front of you right now. That was the high point for my house value.”
SW: “Ok, how are appraisals done in your state? Do you have to go through a title company?”
(that one totally confused me!!)
Me: “I am not sure, but given that I had one done exactly one year ago, and that I know the improvements I have done to my house that would increase the value, and that I know exactly how much the houses on my street have sold for in the last three months, I know it has gone down.”
SW: “Are these houses the same size as yours?”
(huh?)
Me: “The houses are on my street. There are only 6 others in the development with my exact floorplan. I have a degree in real estate, a degree in accounting and have been working in accounting and finance for 20 years. I don’t need an appraiser to tell me that my house would re-appraise this year at $40k less than last year.”
SW: “Oh, ok ma’am. Have a good evening.”
Gee – did I burst his bubble? :->
Trees & Flowers & Birds! 
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