sold endowment

**saurabh** · April 15th, 2008, 09:45 AM

Hi, I have recently sold my endowment, ( about a year ago) but have done nothing to alter the payments. I would like to change to a repayment mortgage for a duration of around 10 years. I still have £6000 left from cashing in the policy, my property is worth around £200,000 and my outstanding mortage balance is £54000. What is the best way to repay the remainder of this mortgage and what insurance policy would i need to cover the payments.

thanks

**alpha** · May 2nd, 2008, 07:53 PM

I read an article in the newspaper about a man who is losing his house because he took out an equity loan in order to buy something else, and then the credit crunch caused his loan rate to go so high he couldn't pay the payments. I meant to cut that out so I could ask people on here, but I seem to have lost the note. Anyway, is this going on in a lot of places?

**Meya** · May 5th, 2008, 04:43 PM

05/05/2008

**Meya** · May 10th, 2008, 12:59 PM

Origianlly Posted: 10 May 2008 02:46 by princee18

one of my relatives need help...
they purchased their home several years ago with an ARM. Their intention was to refinance before the rate ballooned, as also recommended by their mortgage broker AND stock broker.
So, their loan is ready to balloon from around $3000/month to almost $4500/month... ouch! They can handle the increased payments, but it'll take away virtually all of their discretionary income. They go to their lender to refinance and they get denied. Not because of any credit problems, their credit is immaculate.
But simply because their home has fallen dramatically in value. They can no longer get enough in the new loan to cover the old one. Because of all the homes in their area being put up for sale at foreclosure auctions, and many more to come, there is no end in sight for them at the moment. Eek!
So now they are stuck paying a payment they never thought would actually happen.

**Meya** · November 26th, 2008, 04:26 PM

Has anyone who suffered the great depression of their homes being lost, gained any recovery? Or is it still the same? Just curious, and thought you need to be heard.

**ColoNative** · November 26th, 2008, 04:32 PM

Originally Posted by Meya

Has anyone who suffered the great depression of their homes being lost gained any recovery? Or is it still the same? Just curious, and thought you need to be heard.

Things were different back then. The 30 year mortgage was not invented yet and insurance companies issued mortgages.

We have all dug ourselves into this mess because as Americans we are really spoiled and materialistic. I can't even watch HGTV anymore because of all those bratty people talking about how they need more space and they need granite countertops and the Bopsy Twins need a playground. Please.

**Meya** · November 26th, 2008, 04:37 PM

Originally Posted by ColoNative

Things were different back then. The 30 year mortgage was not invented yet and insurance companies issued mortgages.

Woe, how far are you going back?

**ColoNative** · November 26th, 2008, 04:39 PM

Originally Posted by Meya

Woe, how far are you going back?

1920's, 1930's.

**Meya** · November 26th, 2008, 09:55 PM

Another hjm331 in the house!

**Meya** · November 26th, 2008, 10:04 PM

Originally Posted by ColoNative

We have all dug ourselves into this mess because as Americans we are really spoiled and materialistic. I can't even watch HGTV anymore because of all those bratty people talking about how they need more space and they need granite countertops and the Bopsy Twins need a playground. Please.

I just wanted to say, when those people designed their dream home, they went into it thinking this is what they want and are able to afford. What about those who were comfortable with the payments due at signing? Their dream is shattered. Let's not forget the ones that Bush said he will not help out, "Single families!" That was so heart breaking because no one goes into a marriage with an actual date of separation or divorce. What if one of the spouse demised? The other should not receive help? I can understand it if someone was too anxious to purchase a home, without caring about how they will be able to afford it in the future, or a lottery winner who put a mass majority down with no future income to pay off or afford taxes & insurance.

Yes we Americans do have some tendency's to spend and live beyond our means, but I believe a lot of us has learned our lesson from this economic crisis. But, I will say this, I have learned a lot from those who suffered, and I still have the desire to select a design for my future home the exact way I want it to be. I have learned that savings will have to play a major factor when I decide to purchase a home, along with the Lord's Prayer. Glad you mentioned that ColoNative! It really gave me something to think about and talk about.

**ColoNative** · November 28th, 2008, 09:34 AM

Originally Posted by Meya

I just wanted to say, when those people designed their dream home, they went into it thinking this is what they want and are able to afford. What about those who were comfortable with the payments due at signing? Their dream is shattered. Let's not forget the ones that Bush said he will not help out, "Single families!" That was so heart breaking because no one goes into a marriage with an actual date of separation or divorce. What if one of the spouse demised? The other should not receive help? I can understand it if someone was too anxious to purchase a home, without caring about how they will be able to afford it in the future, or a lottery winner who put a mass majority down with no future income to pay off or afford taxes & insurance.

Yes we Americans do have some tendency's to spend and live beyond our means, but I believe a lot of us has learned our lesson from this economic crisis. But, I will say this, I have learned a lot from those who suffered, and I still have the desire to select a design for my future home the exact way I want it to be. I have learned that savings will have to play a major factor when I decide to purchase a home, along with the Lord's Prayer. Glad you mentioned that ColoNative! It really gave me something to think about and talk about.

It is just making me sick to my stomach with this economy. And yes, I am anti-HGTV. I am even more angry because it seems nobody learned anything from the Savings and Loan crisis of the late 1980's and early 1990's. I guess I blame three entities for this: the consumer who purchased more house then they could afford which lead to inflated and falsely high housing prices, the banks who got a little too greedy, and finally our society. Like I said previously, everybody wants bigger and better. Average Americans have no reason to lease a BMW or Lexus (overpriced Toyota with leather!) and we don't need 4 bedroom houses with granite countertops and water features. I look back at my grandparents generation, they bought a house in the 50's, finished the basement when they had more kids and paid that sucker off. We need to get back to basics IMHO. Hell, even people in the 70's were happy with their odd tri level mansard roof houses. Stepping off my soapbox.

**Meya** · November 28th, 2008, 12:33 PM

I can see your face as I read this posting

!

I can agree with what you are saying, we should not purchase something that we can not afford. Luxury is an over-price want, that strips us from our needs.