On today’s new analysis released by CoreLogic, leading global property information, analytics and data services provider, reported that 1.2 million borrowers regained equity in 2014. Nationwide, borrower equity increased year over year by $656 billion in Q4 2014. Borrowers with near negative equity are considered at risk of moving into negative equity if home prices fall. In contrast, if home prices rose by as little as 5 percent, an additional 1 million homeowners now in negative equity would regain equity. The calculations are not based on sampling, but rather on the full data set to avoid potential adverse selection due to sampling, and only data for mortgages residential properties that have a current estimated value is included.
Visit me at http://www.sandyflores.com; More information call me (714)963-7462
Home ownership means you no longer pay monthly rent for the roof over your head. When you leave, you can sell it to recoup the purchase price and earn any profit that you may have accumulated through your appreciation in value.
But don’t kid yourself. Home ownership comes with a slew of disadvantages, responsibilities, and downright headaches. So before going any further, consider whether your lifestyle and finances make home buying a smart move for you.
Except in a roaring real estate market, it usually doesn’t make sense to buy a home you’ll stay for less than three or four years, because the cost of the process of buying and selling your property means that you could lose money from your equity. On the other hand, you will not pay capital gain taxes if you’re in the property for at least of 2 years.
One key question is whether it costs more, on average, to rent or own in your area. The rule of thumb is that if you pay 33% in rent than you would for owning including the monthly mortgage, property taxes, and any homeowner’s fees, then it’s smarter to own a home then renting it.
As always, get your finances in order before committing to buy a home, and stay informed of all the options, alternatives and programs that will fit your needs.
Get help, and call a Realtor…Call me 714-963-7462. Leading your way home!