Comments on: Refinance when your house is under water? http://www.mightybargainhunter.com/2010/07/30/refinance-when-your-house-is-under-water/ Helping readers to use bargains wisely since 2005 Sun, 12 Feb 2012 16:24:19 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Donna Freedman http://www.mightybargainhunter.com/2010/07/30/refinance-when-your-house-is-under-water/comment-page-1/#comment-247842 Donna Freedman Fri, 13 Aug 2010 07:44:42 +0000 http://www.mightybargainhunter.com/?p=2304#comment-247842 I personally think that no emergency fund IS a problem. A couple of problems and you're suddenly in credit-card debt. For example, my sister and her husband experienced a year that they recalled as "the revolt of the appliances." The fridge died. The stove died. The washing machine died. They were able to pay cash for new ones. Not happily, mind you. But had they not had an EF, they'd have been even less happy. It doesn't even have to be a big-ticket item -- just a series of smaller ones. Car repairs, broken eyeglasses, minor illness + high deductible... And yeah, plenty of people never expected to hear "Clear out your desk." But they heard it anyway. I personally think that no emergency fund IS a problem. A couple of problems and you’re suddenly in credit-card debt.
For example, my sister and her husband experienced a year that they recalled as “the revolt of the appliances.” The fridge died. The stove died. The washing machine died.
They were able to pay cash for new ones. Not happily, mind you. But had they not had an EF, they’d have been even less happy.
It doesn’t even have to be a big-ticket item — just a series of smaller ones. Car repairs, broken eyeglasses, minor illness + high deductible…
And yeah, plenty of people never expected to hear “Clear out your desk.” But they heard it anyway.

]]> By: Money Beagle http://www.mightybargainhunter.com/2010/07/30/refinance-when-your-house-is-under-water/comment-page-1/#comment-246062 Money Beagle Thu, 05 Aug 2010 17:21:51 +0000 http://www.mightybargainhunter.com/?p=2304#comment-246062 I'm kind of going through the same thing. We wouldn't wipe out our emergency fund but would wipe out most of our non-retirement investments if we were to do this. The investments, like the stock market, have pretty much been flat since I made them (they've gone up, down, up again) so for me, it's a matter of deciding whether I can get a better return in the stock market or the guaranteed return of the lower payment. Not sure yet but keeping an eye on things while rates are low. I’m kind of going through the same thing. We wouldn’t wipe out our emergency fund but would wipe out most of our non-retirement investments if we were to do this. The investments, like the stock market, have pretty much been flat since I made them (they’ve gone up, down, up again) so for me, it’s a matter of deciding whether I can get a better return in the stock market or the guaranteed return of the lower payment. Not sure yet but keeping an eye on things while rates are low.

]]> By: Nicole http://www.mightybargainhunter.com/2010/07/30/refinance-when-your-house-is-under-water/comment-page-1/#comment-244634 Nicole Fri, 30 Jul 2010 22:43:09 +0000 http://www.mightybargainhunter.com/?p=2304#comment-244634 Everything you say makes sense. Refinance if you can pay down the difference without losing the emergency fund. Rates will be low for a while, so it might be in this person's best interest to go on a spending diet for a while if they want to proceed on a refinance later. Everything you say makes sense. Refinance if you can pay down the difference without losing the emergency fund.

Rates will be low for a while, so it might be in this person’s best interest to go on a spending diet for a while if they want to proceed on a refinance later.

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