Interest rates... Amortization changes... What does that mean for me?

Woke up this morning and read this article, and it was interesting to me for several reasons.

First of all, it addresses the recent changes that our government has made in regards to mortgage.

• 35–year mortgages no longer an option as of March 2011.

• Refinancing amount reduced to 85% of property’s value

• Rising interests rates

All of these changes affect the housing market. Questions start to arise as to whether it is a good time to buy, sell, invest, or maybe for some flee the country?

No need to do anything to drastic right now, but asking yourself the right questions and discussing your best moves with a trusted professional will at the least put you in a position where you know where you stand and what your best movements will be, if any movement is required at all.

For an example, dependent on your financial situation, you may be able to comfortably afford a mortgage under the 35 year amortization, but will feel too stressed under the 30 year option. I encourage you to give me a call. I have a list of both qualified and capable mortgage brokers I would be happy to connect you with.

Another aspect of this article that was brought to my attention was that no one can predict the future. At this point we can all throw out ideas and opinions of what is going to happen. But, it’s a situation, where time will tell. There are those who see these changes impacting the economy in a negative way, while others see minimal differences.

My take on the whole situation is to look at how the changes can benefit you. If you are financially able to purchase a next house, leasing possibilities may be the way to go, as other individuals and families are adjusting.

If you are looking to buy your first home, now would be a good opportunity to look at different mortgage products, such as lease-to-own, or rent-to-own. You may just have to stay where you currently are and continue to save your money for down payment, and correct your credit. The comfort is knowing that when you get into your home, you will be able to enjoy your home, because the monthly payments will be more affordable.

In conclusion, I think that an appropriate response to this article is to educate yourself and plan your next moves. Do not let the changes divert you from a goal. Use it instead as a stepping stone. Life is all about embracing change, so here we go.

 

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Nicole Lowe

Nicole Lowe

Sales Representative
CENTURY 21 Millennium Inc., Brokerage*
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