Watch on your mobile device >>
With stocks down, home prices down, foreclosures up and nothing really changing too rapidly, homeowners all over the country are stressed and for good reason. They have no idea where the market is really headed. It seems that at times home sales are on the rise while at other times stocks plummet, the cost of gasoline skyrockets and the unemployment lines stay put.
What is the right thing for a homeowner to do in order to protect their investment? How can people get through this tumultuous time without a hitch and ending up on top? To answer these and other questions, here is a list of things that have crossed many homeowners’ minds lately and what you can do if you find yourself in the same situation.
Am I Paying Too Much for My Current Mortgage?
Homeowners that wonder if the cost of their mortgage is too high considering the really great rates out there right now – are in for a big treat. The savings from a refinance can add up to tens of thousands of dollars when you lower your interest rate by just a few points. This is very much doable for a lot of mortgage holders that are stuck with higher rates even from just a few years ago. What’s more is that Obama recently announced an incentive for homeowners with previous mortgages to refinance, lowering both their one-time private insurance fee and the monthly PMI payments.
How Can I Use My Mortgage As a Financial Tool?
Today’s amazing interest rates hold a lot of promise for homeowners and those looking to get into a new home for the first time. As Warren Buffett said, now is the best time to buy single-family homes as they are among the best asset class to have. If you find yourself in a less-than-desirable mortgage you can change it with a move to a lower rate and either a 15-year or 30-year fixed rate mortgage. It is important to look at the cost of your home rather than just the initial price of your home.
Is Now Really the Best Time To Buy a Home?
When you combine the fact that interest rates are as low as they are with home prices also being lower than they have been in years – you get a strong buyers market. This could not be a better time to buy a home because the ultimate cost of your purchase will be hundreds of thousands less than if you were to buy with what were considered low rates just a few years ago. Since the market has been lurking in unknown territory for a number of years there is no way to tell when today’s historically low interest rates will begin to climb again or when the market will once again shift to sellers’ advantage.
Unfortunately many homeowners are bogged down with not one, but two mortgages that are very difficult to handle in today’s tough economic times. One possibility is to eliminate both mortgages and create a single payment but it is not a simple feat. Loan consolidation of two mortgages depends on many factors and it requires a detailed look at things like the term left on each loan, the number of years lived in the home, its value and your income range.
~
If you have questions about your mortgage or would like to explore your options through a customized consultation with me, I welcome hearing from you and look forward to the opportunity!
