Mortgages and the Economy

Here in the United States, the housing market has been struggling over the past few months. Here in Florida, there are probably more houses for sale than I ever remember. The good thing is that if you are in the market for a new home, there are plenty of choices. And the prices are coming done enough so that Mortgages are not as scary as they were a few years ago.

Tonight at the gym, we were just talking about how many people got over their heads with a mortgage that was way over of reach. With the many foreclosures and short sales that have taken place, some could be fearful of taking on a mortgage. However, most mortgages are less than rent! And you are building equity with a mortgage.

When you are looking to get a mortgage, be smart about it. Don't become house poor. The way the economy is right now, prices may drop further and you don't want your mortgage to be higher than the value of your home. Borrow what you can afford, even if you get a pay cut next year. Do you research and find a reputable mortgage lender before you sign on the dotted line.