In their latest effort, NYT offers us the obvious “tips” of creating value in our home like, uh…getting a cleaning service to come in and give it a good once over.
Never mind the fact that this lasts about one week unless you decide to dig a straddle trench latrine in your back yard or use your neighbors toilet.
Tip number 2? Cash-in refi’s.
Yeah, this is when you are upside down in your mortgage, and decide to take money from your retirement account which is earning on average 10% YOY (statistical fact over time, thank you), and reinvest that money into your mortgage so you can save 2% on your mortgage payment.
So let me see, that means you lost 8% on the gain, incalculable dollars on opportunity costs, and oh yeah, thrown good money after bad (chased your loss in equity) in order to receive a 2% buy down rate in the hopes that someday your home will reach its original “bubble value”.
Another “tip” is to check the comps in your area to determine your home value. Or better yet, you can hire an appraiser.
Huh? Isn’t this the most accurate and professional way to determine the value? Yes, it is. In fact, it is the only way to actually determine the value in real time.
Do yourself a favor and hire an independent, highly reputable appraiser who specializes in your area. Make sure you get at least five references and ask them straight out if they can get the value out of your home.
If they are worth their salt, they will tell you after a quick walk through. If they do, have the decency to at least cover their time and gas to make the effort.
Then you will know for sure whether you have a snowball’s chance in hell of actually getting your refi.
Finally, read the funnies, er..I mean, the NYT every single day.
This way, you will have comic relief each and every day and be sure of exactly what NOT to do when it comes to your home.
Appraisal Source is a New York based residential real estate appraisal firm. Their highly-qualified appraisal staff provides independent residential real estate appraisals throughout Long Island and New York City.
Here’s the original article…Determining a Home’s Value