Our circumstance is one I have not seen discussed on any website yet. We are 3 years into a 15 year mortgage and have paid off about 1/3 of the price of our house. The grant paying one of our salaries ended, causing a substantial reduction of family income, about $20,000 less in gross income per year. Our credit scores are above 800. We are reluctantly considering increasing the length of our loan, which would allow us to restore our financial cushion, improve the property which would allow for a quicker sale if necessary, allow us to visit aging parents more often, etc. We have not had the property appraised yet, but the Nashville, TN market has not suffered the way many have. Your thoughts, please.

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 Tags: refinance

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Alicia Naiman    June 4, 2009

I think the ultimate question is: “What is more important, paying off your home earlier, or enhancing your current quality of life?” Short term goals vs. long term goals. Also, the sooner you speak to a mortgage consultant, the better. They will be able to crunch the numbers to enable you to make a more informed decision. With the reduction of income, you need to know what refinancing options are available. The lending market is tight right now, and many are upside down in their homes. With your good credit, you have positioned yourself well. Great job!

Alicia Naiman
Connect Realty.com, Inc.
CA Real Estate Appraiser, CA Realtor®
Serving Sacramento, Placer & El Dorado Counties
http://www.SacramentoRealEstateSearch.com