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Thursday, 14 November 2013

Mortgage Trends 2013


This spring would be very satisfying for all the homeowners as the housing market will observe a tremendous increase in the number of potential buyers. With the home prices gaining momentum and mortgage rates going down, it is expected that more buyers will hit the market.  

Let us have a look at the mortgage trends for the year 2013:
Experts say that there would be rise in the home prices. This is good news for all the homeowners as they will regain equity in their homes and thus will get an opportunity to refinance their home loans and cash out some of the equity. Moreover, those owners who are lagging behind on their mortgage payments can think on modifying their loan program in order to grab on some very good deals to reduce their monthly payments. 

Finance and economical experts have also predicted that borrowers looking for low-payments mortgages might be charged with mortgage insurance for the entire life of the loan as a result of the FHA loans losing their appeal once again. However, the modifications in the loan programs would not affect those owners much who plan to move out of their house in the next 10 years. Conversely, if you want to keep the house for long then it would be wise to understand this modification thoroughly. 

If you are planning to buy a home this spring, be ready for tough competition, since the supply of homes for sale is less than the demand of buyers leading to discrepancy between the demand and supply of homes. Therefore, it is recommended to keep options ready if you are really looking forward to buy a home in couple of months. If you are a first time buyer, make sure that you do a complete homework about the market conditions and only then move ahead with your buying.

Though the market is turning in favor of the home-sellers, the home buyers need not worry as the home prices are still very attractive. Despite the fact that the mortgage rates would rise at a snail’s speeds, it will still remain at lower level for some more time thus creating some more room for buyers.

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