|
|
Mortgage Rates Down - Home Sales Up: So What Does This Mean For You?
Zillow Mortgage Marketplace which compiles data on mortgage rates announced that mortgage rates are down. Standard & Poor revealed that home prices are on the upswing for the second quarter in a row. So what does this mean for you?
Most homeowners don't need to concern themselves with minor variations of mortgage rates or the real estate market unless they plan on refinancing or selling their home. Or, of course, their mortgage has a variable rate. Higher home prices, as an average across the United States, doesn't mean a lot for an individual homeowner. The old saying in real estate that location is everything holds true. Home values are location specific. Even within the same city there can be a wide variation from one area of the city to another.
However, rising prices in your specific geographic area means your home could have a higher value as well. One of the important factors in home appraisals is what other like homes in the neighborhood have sold for. If prices are on the increase, appraisal values increase as well. That means your debt to equity ratio of mortgage to market value of the home, changes for the better.
"The U.S. National Composite rose in the 2nd quarter compared to the 1st quarter of 2009. This is the first time we have seen a positive quarter-over-quarter print in three years," says David M. Blitzer, Chairman of the Index Committee at Standard & Poor's.
It may be too early to forecast a recovery in the housing market for the long term, but short term improvements are still good news.
Over the last two years many homeowners found themselves underwater. In other words, the outstanding balance on their mortgage is greater than the value of their home. Rising home prices starts to tip the scale back in favor of the home owner.
If you're considering refinancing your mortgage, review the home values in your neighborhood. Often newspapers will publish the information on a monthly basis or have it online. Real estate offices have the information at their fingertips and may be willing to share it with you. Mortgage rates are available online as well. Sign up to review your credit report. You are entitled to a free copy once a year from each of the major credit bureaus. If at all possible pay down credit cards in the months prior to seeking refinancing.
There may not be an end in site to the stormy real estate market but the news of lower mortgage rates and higher home values is at least a silver lining.
|
 |
Please Rate: |
|
Rating: |
 Processing ... |
(Average: Not rated) |
| Views: | 14 | |
|
| More Articles from Investing | | |
| Top Articles in Investing | | |
|
