Friday, June 28, 2013

Mortgage Rates Are Rising- It's Going To Be Harder To Buy A House

According to The Economic Collapse Blog, mortgage rates are about to start rising. They have been kept artificially low for a long time thanks to the Federal Reserve, which is about out of tricks.

Low interest rates allowed a lot of people to buy houses, and to buy even more expensive houses. McMansion, anybody? One benefit to rising interest rates is, they will likely push housing prices down after a while. It's real easy to finance a $350,000 house at 3%, but at 9%? Forget it.

We've been hearing for so long now that owning a house is the "American Dream". I'm starting to wonder if we're not just parroting some marketing bullshit thought up by Realtors and mortgage companies. There are certain benefits to owning a house, although don't forget that even though you own it, you can still lose your property over tax and zoning issues. It's not entirely "yours".

The blog post I linked said rising interest rates are causing more people to turn to ARMs (Adjustable Rate Mortgages). I would warn you not to do that, but most of you won't listen so just knock yourselves out and cry about it when it backfires. I won't be listening.

My house is up for short sale as a byproduct of a bad housing market and a divorce. I'm not in a hurry to own another one. In my case, owning a house became an anchor around my neck dragging me down and not allowing me to make a few moves I wanted to. It forced me to live 180 miles away from my family for 3 years because I had to move away to find a stable job that could support us.

Don't base your own life plan on the bullshit other people are parroting. Do what is right for YOU at the time it is right. Don't get jealous because everybody else owns a house. There are some times in life during which renting is probably better for your. It's not throwing money down the drain any more than eating out is. It's an economic transaction, pure and simple. One size does not fit all.
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