Afraid to buy a home - now?

09/20/08, Dayton, OH Is the current economic environment making you twitchy? Looking at all the foreclosures in your area and thinking - oooo - could that be ME if I buy a home?

Not necessarily.

One of the culprits of the current scenario is something called "option ARMs" - options are provided to homeowners monthly - do you want to pay a, b, c or d option? Problem is with many of the options, people look at the payment they will be making, not at the interest rate. Pay a lower payment, your interest rate is higher. And the difference between the lower interest rate payment and the higher interest rate payment is added onto the back end of your mortgage - resulting in lengthier time to pay off a more expensive loan.

There are still loans out there with good terms - fixed rate, 30 year, FHA or VA if you qualify. There are even Jumbo loans for homes in higher price ranges, but expect to pay a premium on rates, because these are more risky.

There's gotta be a way for you to keep your head above water and survive and even thrive in this market. In fact, investing in real estate is one of the perfect ways to do so.

Just do it wisely.

Questions? leave a comment or a question for me. And have a great day!

Gina Kay