Americans who have owned their homes for the past few years have a lot of equity in their homes: $9.62 trillion worth at the end of last year, up 13{070c63b32385cb02f7cc6b293bb2e967f577fefea717b7fffc8dc882e4751d49} from a year earlier, according to the Fed’s tally. Even if house prices fall a bit, homeowners still will have significant equity — except for those who have hocked nearly all the increase in home values with frequent refinancing or large home-equity loans.
From the Realestatejournal. This should not come as news to anybody. The concept is simple, one that I was taught long ago. Don’t gamble more than you can afford to lose. Short-term interest-only mortgages and the like can be very good vehicles for those who plan for the seemingly-inevitable rise in rates accordingly. Those who do not may find themselves in with many others seeking bankruptcy/foreclosure (archived: 2019).
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I have been been representing buyers and sellers in Charlottesville, Albemarle, and Central Virginia since 2001. Get local insight born of experience.
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