Forced to Sell or Time to BuyBy Debbie Wilson
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The past several years have marked a period of easy mortgage financing for buyers with marginal credit and growing use of zero-down loans to afford pricey houses. But now these practices are coming back to haunt builders, lenders, and consumers alike. Find out what you need to know about buying, selling, or refinancing your home.
Mortgage ChallengesIf you bought a home with a low teaser interest rate, you might be seeing your monthly mortgage payment soar. For many Americans, that means they're not able to afford these new mortgage payments, nor can they refinance under today's tougher underwriting standards. The solution is to put these homes back on the market.
Financing DifficultiesAccording to the National Association of Homebuilders, problems in the sub-prime mortgage market-- loans for borrowers with low credit scores---are likely to reach into other sectors of the housing market. There may be a domino affect in which people who have good credit and good income will nevertheless find it more difficult to buy a home or refinance their current mortgage. They have to sell the home they're in first and that's simply not happening. While there's no simple solution anytime soon, there are reasons to be optimistic about the housing market.
Time to Buy?The current weakness and rich incentives from builders has created an opportunity for buyers that might only last three to six months. Many builders have been forced to throw in incentives to generate sales of new homes. Mortgage companies are offering a wide variety of loan options, hoping to entice new buyers and refinancing customers.
It seems as though mortgage companies are always saying this is the best time to buy. However, this really could be the best time!
About the Author
Debbie Wilson owns and operates a lakeside resort. Her previous experience includes profitability consulting for a national healthcare company. Debbie holds a B.A. in Business Management with a minor in Physical Education.
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