June 23, 2024

Illuzzi Letter

Envisioning And Creating Your Dream Home

Should a Homeowner Push Ahead With Sale of a Home Or Refinance Home Mortgage Loan and Stay?

Many homeowners have been trying to sell their property for a while now, probably realised that it is time to make a decision. Either cut the price of a home to let it go as a bargain or look for alternatives to weather the boat for a long haul. This is the position many homeowners facing, although few lucky ones still sell their home relatively fast.

There has been talks of a green shouts long enough, it may be time to accept that things are not going to get better that fast. Or not fast enough to rescue many troubled households from their problems. It is essential that people prepare for a long hard road. Long term financial planning may save people a lot of pain. It is unlikely that the wages will increase anytime soon. How many of us can dare to ask for a wage increase? If the income can not be increased, the only way available money can be increased is by saving.

What is the largest item in any household spending? Yes, it is either rent or mortgage. Anyone who is looking into saving money for the family has got to have a long and hard look at the mortgage. If the family decided to stay in their home for a while, it could be a good time to fix the mortgage and reduce another financial uncertainty in their life. Refinance home mortgage loan could consolidate loans, reduce monthly payments, allow cash out and change the interest rate type from flexible to fix or vice versa.

Housing market has been losing skilled workers for a long time now. In many areas house building stopped. Many builders have gone out of business. Although these are bad signs normally, it is a good sign for homeowners worried about house prices. House prices gets depressed when there are too many houses built. Who wants to buy a resale home when they can buy a brand new one at a cheaper price? When house building stops, prices will have to go up at some stage. Then, the builders come back and build more houses and bring the prices down. It is a cycle that has been going around for long enough.

The house prices will go back up once the repossessed houses cleared and enough people discouraged from selling. Where the money is going to go? People will remain cautious of the stocks and will not be in a hurry to start new businesses. As soon as there are signs of housing recovery, people would want to grab any bargain property left in the market.

However, the whole situation may go worse before it gets better and the cycle turns positive. It is time to prepare the ship for the rough waters, if it has not already been done so. People should write down what they could face in the near future or what they are facing now and look for their options out. Early action can save a lot of hassles. For example acting now and refinancing home mortgage to get over some of the issues may solve part of problems. However, if homeowner waited too long and start missing payments it may be difficult to find refinance then.