Is your home dragging you down?
For many, a home and/or mortgage obligation can represent an enormous financial struggle, emotional burden, and time consumer – but it can also represent a tremendous store of potential value. And we’ll discuss these two popular positions here.
Mortgage is just too big
A home represents the single largest investment most people make in their lifetime. And it isn’t uncommon for most Americans to assume a higher mortgage than they can comfortably afford. They often pin their hopes on inflation, employment stability, future income growth, and the payoff of other debts (like student loans) which would make a house payment more bearable as time goes on.
Even if the plan goes generally as planned many mortgage payments still find themselves adding tremendous financial pressure with each passing year. A tough mortgage payment will strain bank accounts, credit, time with family, and even a marriage. So, it’s not hard to imagine what happens when things don’t go according to plan. And here is where acting quickly may benefit you.
First, you need to remember that homes are sometimes slow-moving investments. Both in appreciation and in liquidation – homes are not like stocks that you can sell in the morning and have the funds in your bank account in the next 1 to 3 days. So if you sense trouble on the horizon, talking with a REALTOR® to understand the timeline involved may be key in mitigating any serious financial stress and concern.
Rule of Thumb
Many financial planners suggest that your house payment ought not exceed 25% of your household income. Yet, most lenders recommend that your house payment ought not exceed 36% of your household income – and the average household finds itself near or above this limit with many in higher-end homes teetering close to 45%.
Equity and Other Debt
There’s a great chance your home has built up equity through the years. For some, it’s tempting to use these funds to pay off high-interest debt, roll the funds over into less expensive home, or live out a dream like going back to school or traveling the world. When you find yourself in a position of not having to sell out of pressure or necessity, it’s sometimes easy to procrastinate on the discussion – but since you’re here, you might be closer than ever in exploring this opportunity. Here again is where speaking directly with a local REALTOR® may provide you with information on what your home is actually worth, an estimated timeline, and answer any of your questions that may help you understand the road ahead.
Real Estate Professional
Boise, Idaho – As the fastest growing metropolitan area in the country, the Treasure Valley is simply exploding in growth – a fact you probably face with every morning and afternoon commute. While much of this growth has primarily affected Boise, Meridian, and Nampa, the growth finds itself even spilling into communities such as Middleton, Kuna, and Caldwell.
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I have been a licensed REALTOR® and Entrepreneur in the Bay Area since 1987. Being a REALTOR® is about helping others achieve home ownership by providing quality professional services buying and selling properties. I was recognized as REALTOR® of the Year in 2001, hold the Tribute to Women in Industry Award, was honored in the XYZ International Hall of Fame, hold the XYZ Lifetime Achievement Award, Solano County Association of REALTOR® Distinguished Service Award and the Peyton Manning Humanitarian Award.
Being fully dedicated to the industry means giving back to ensure that our Napa community always remains a top place to live and raise a family. I am honored to have held many positions in my Real Estate Career including President of the Napa County Association of REALTOR®, President of the Sacramento Multiple Listing Service, President of the Oakland Multiple Listing Service, President of the Nevada Association of REALTOR® and Director of the National Association of REALTOR®. I have sat on the Boards of Placer County Association of REALTOR®, Oregon Association of REALTORS® and the National Association of REALTOR®.