by quickenloans.com
With mortgage rates so low, home owners are rushing to refinance to lower payments. But the number one stumbling block to locking in today’s historically low rates is diminishing home values in the current economic downturn.
Economists show that in recent years home values were grossly inflated. The recession we are experiencing has the side effect of returning home values to more realistic levels. This means that people who bought at the height of the market may find themselves owing far more than their house is worth – a situation known as “underwater” in mortgage lingo.
Of course the lower home values that are sweeping the nation are great news for those in a position to buy a new home. A great price on a house, coupled with the lowest interest rates in decades, makes this a perfect opportunity for prospective home buyers.
“I bought a house for nearly 50 thousand less than the asking price,” said Clayton Closson of West Bloomfield Michigan. In 2004 the same house was valued at nearly 150 thousand dollars more than Closson paid. The Michigan housing market has been hit particularly hard by the recession, resulting in plummeting home prices.
But the great opportunity for home buyers is little consolation for those who bought at the height of the housing bubble.
How can you find out your home value?
When you home is professionally appraised, the appraiser takes into account a variety of factors, such as the condition of the home, recent improvements and additions, and the comparable sales in the area.
Since comparable sales play a large role in home values, it’s possible to get a ballpark estimate on your home’s worth from online tools that pull from public records of recent home sales. The most recent sales in your area are applied to your home. It’s an imperfect mathematical formula, but such a tool can give be part of your research when considering a refinance. Check out Quizzle’s home value tool, powered by cyber homes to get an idea of your home's worth
If you owe more than you home is worth, the best thing to do is wait. If you continue paying your mortgage balance and keep your home in good repair, in time the balance will diminish while your property will appreciate in value.
Do you think you may owe slightly more than your home is worth? Then there's actually good news for you - the government wants you to take advantage of lower rates. They created a plan to help people in just this situation. If you owe just five percent more than your home is worth, you may qualify for a refinance under President Obama’s Making Home Affordable mortgage modification plan. Answer a few questions to find out! Or talk to a mortgage expert to learn your options.
With mortgage rates so low, home owners are rushing to refinance to lower payments. But the number one stumbling block to locking in today’s historically low rates is diminishing home values in the current economic downturn.
Economists show that in recent years home values were grossly inflated. The recession we are experiencing has the side effect of returning home values to more realistic levels. This means that people who bought at the height of the market may find themselves owing far more than their house is worth – a situation known as “underwater” in mortgage lingo.
Of course the lower home values that are sweeping the nation are great news for those in a position to buy a new home. A great price on a house, coupled with the lowest interest rates in decades, makes this a perfect opportunity for prospective home buyers.
“I bought a house for nearly 50 thousand less than the asking price,” said Clayton Closson of West Bloomfield Michigan. In 2004 the same house was valued at nearly 150 thousand dollars more than Closson paid. The Michigan housing market has been hit particularly hard by the recession, resulting in plummeting home prices.
But the great opportunity for home buyers is little consolation for those who bought at the height of the housing bubble.
How can you find out your home value?
When you home is professionally appraised, the appraiser takes into account a variety of factors, such as the condition of the home, recent improvements and additions, and the comparable sales in the area.
Since comparable sales play a large role in home values, it’s possible to get a ballpark estimate on your home’s worth from online tools that pull from public records of recent home sales. The most recent sales in your area are applied to your home. It’s an imperfect mathematical formula, but such a tool can give be part of your research when considering a refinance. Check out Quizzle’s home value tool, powered by cyber homes to get an idea of your home's worth
If you owe more than you home is worth, the best thing to do is wait. If you continue paying your mortgage balance and keep your home in good repair, in time the balance will diminish while your property will appreciate in value.
Do you think you may owe slightly more than your home is worth? Then there's actually good news for you - the government wants you to take advantage of lower rates. They created a plan to help people in just this situation. If you owe just five percent more than your home is worth, you may qualify for a refinance under President Obama’s Making Home Affordable mortgage modification plan. Answer a few questions to find out! Or talk to a mortgage expert to learn your options.
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