Is Now The Right Time For You To Enter Into A New Mortgage?
There are a lot of people who escaped the economic downturn with their credit ratings still intact despite really suffering from the consequences. Many were forced to sell everything to avoid bankruptcies or mortgage foreclosures. Unfortunately, having been through that experience, many are now reluctant to try again.
That is an approach that is perfectly understandable – “once bitten twice shy” springs to mind. However, owning a home is the great American dream and it is still achievable. For those who have managed to get back on their feet and are slowly rebuilding their assets, now could be the perfect time to act.
House prices are starting to cycle upwards again so waiting a year or two may see prices once again at the outer limits of affordability. This may not relate to you, but one of the reasons so many people did find themselves in trouble during the downturn was simply because they purchased their homes when the markets where at the top of their cycle. In other words, they purchased homes when the prices were at their highest. As prices started to fall, they found that their mortgages were more than their homes’ valuations – sometimes by as much as 20-30%.
If you can get into the market now when prices are still reasonably low, the only way forward is upwards. If you buy now, every dollar increase in the house’s value is an extra dollar of equity you have in the home – that is an important asset to have in hand. Mortgage terms may not be all that favorable at present, however, in two or three years time when the value of your property has risen you will be in a strong position to renegotiate your mortgage so that it is more favorable.
If you are in a position to buy a new home, now may just be the best time to do it.
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