Refinance? Hold On? Lower payment? Can’t decide?
I have a house in LA that was worth 1.2 ml a couple of months ago. I owe about 950 on it (second mortgage). my payments are about 6500 every month. My friends tell me to refinance, lower my payments and maybe let go of the house since the prices will drop even in the next two years. I will have prepayment penalty with that one. I also have anothe option of refinancing and getting about 100,000 cash but my payments will go up to 8000 a month, no prepayment penalty, interest only loan. I am very confused. I hate finance, but I don’t want to get stuck with a mortgage that is higher than the price of the house. Are there any fortune tellers out there that know what will happen to this housing market and should I stick it out with my house?