Experts are springing up everywhere to explain the current real estate boom and to give their best guess as to its cause and the date of its conclusion.
One of the statements that has gained a lot of traction is that more people are buying more real estate because of the large variety of exotic home loans available today. In this case “exotic” usually refers to interest-only loans, teaser-rate loans (i.e. 1%) and other negative amortization loans. Home buyers in Anchorage have been identified as one of the largest groups of negative amortization loan borrowers.
When my lending team works with a prospective home buyer, we always try to clearly explain their loan options and find the financing that allows them to best achieve their goals. If someone is buying a fixer with the intention of sprucing it up and putting it back on the market in 4-6 months, then something that lowers their carrying costs — like an interest-only loan — may be the best solution.
On the other hand, if someone isn’t planning on making another move for the next several years, there are other less risky loan products that will get them into their home and allow them to live there with the peace of mind that comes from knowing the financial rug won’t be yanked out from under them.
The key here is to be working with professionals who will ask you the questions that will produce a set of viable home loan options that are custom-tailored to reflect your personal preferences and financial goals.
It’s great that we don’t live in a one-size-fits-all world anymore. Today, consumers have the ability to customize almost everything in their lives, from the music CDs that they listen to all the way to their mortgages. With that freedom, comes the obligation to choose responsibly, base your choices on wise counsel and make sure that you can ultimately live with the outcome.
If you’re an Anchorage homeowner and you’re feeling concerned about any aspect of your current home loan, please email me and we’ll set up an appointment to review exactly where you are…and make sure you’re on track to get where you want to be! If you’re in the market for temporary furnished housing in the Anchorage area, take a look at what we have to offer.