Many Borrowers Facing Higher Mortgage Costs Next Year

Many Borrowers Facing Higher Mortgage Costs Next Year

This article talks about high good credit scores and does not even mention the even more higher credit score achievable. Nor does it mention the low credit scores, and cash poor with little down payments. Those that have been relying on the opportunity to consider buying  a home with 3% or 3.5 % down payments. What will happen to all those buyer's who wanted to purchase, were out bid, distracted, or discouraged by high demand of previous months with bidding on homes in many locations and price points. Particularly lower end price points as in $250,000 to $300,000. Investors with all cash gobbled up many of the homes on the market and the people attempting to buy with minimal cash down and loans of FHA were out bid. I had some of those buyers.

For those that decided to wait to see if things cooled and slowed down, now you may be in for more challenge. Higher interest rates, property appreciation contributing to higher market list starting price points. Negotiating a home in Spring looks like prediction and forecast says warning,  "Buyer's may pay more!"

Issues arise then if you are with tight and little down payment, qualified to purchase in a price point that you have been out priced in the communities of your preference to live. You now have options to relocate to a more affordable town where homes are with in your qualified buying power.  Find ways to come up with larger down payments and work on your credit score because your FICO will dictate what interest rate you qualify for.

Owning a home is the means to secure your wealth, by building equity as property values appreciate. Renting in this current economy cost more than owning a home. It is now less expensive to buy a home than to rent. If you are choosing to rent, you will continue the struggle of paying high rents. As interest rates rise, rents rise. Less rental vacancies. Homeowners will enjoy property appreciation in rising property values.

I am encouraging renters, to do everything possible to focus on saving, visiting their credit and fixing what needs to be fixed, saving for your down payment. Take that leap of faith by planning, preparing, and learning about home ownership and what you need to do to become a home owner.

Home ownership is still the American Dream for many.