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| First Time Home Buyers - New Financing |
Folks can remember when their parents told them not to sign
that 20 year mortgage because they had a 10 or 15 year
mortgage and that was long enough for anyone. Then along came
the 25 year mortgage and then the 30 year mortgage. All came
about because the increasing home prices and it allowed you to
buy more home for your money. The same is happening with the 40
year mortgages.
* During the past few years it has been the buy down rates
that have helped families stretch to their new home and low down
or no down loans. On close inspection I think you will find
that these programs were not the best for everyone including the
mortgage companies and |
banks.
* Buying a home with a loan which has incremental increases in
the interest rate may not seem to be a bad deal when the buyers
qualify at the lower interest rate. But what about when the
rates go up each year and they are totally unqualified three
years later for the higher rate, who does it help. Not the
home buyer. Check out the foreclosures in your area you may find
that a good amount of them are homes sold in the last 5 years.
*New home buyers consider this it may be best for you to stay
within a real budget and not gamble on future pay raises,
promotions or appreciation. We have seen and economists will
tell us that in some |
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sectors (a lot of job market sectors) real
income has gone down and that effects your ability to pay your
mortgage with the increases and every other thing including food.
*The average home owner moves every 5 - 6 years. This next
home purchase will in all likelihood not be your last. As
your situation changes it will be time to move to the next
bigger home in a nicer neighborhood and then again and again
until it's time to stop or trade down. Take your time your first
house won't be your last house unless you stretch to far away
from a real livable budget and fall into foreclosure.
The new fixed rate mortgage of 40 years can be just what's
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to help families with the high cost of housing. This may
help the hard working people who can not afford to live in the
town in which they work.
About the author:
Bill Carey with over 30 years in real estate sales, investments,
and home building offers a unique perspective to the buying and
selling process of residential real estate for F*R*E*E consumer
information and reports log on to
http://www.CharlotteNCExecutiveHomes.com and see "Insider Real
Estate Secrets Revealed" ...a must-read for Home-Owners and
Renters! It's a F*R*E*E 12-lesson e-course covering more than 20
topics exposing the rea
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