More Homes Rising Out of Negative Equity
Chicago, IL (PRWEB) September 11, 2013 -- Peoples Home Equity is proud to echo news that millions of homes have risen out of negative equity since the end of the first quarter. According to Core Logic’s latest Equity Report, 2.5 million homes have “returned to positive equity”. This news is exciting for both buyers and lenders because it means more homeowners may be willing to sell their home for a profit and less Americans may foreclose on their homes.
Negative equity is when the value of the home secured is worth less than the outstanding balance of the mortgage. The amount of homes that remain in negative equity is only 14.5% for the second quarter of the year. This fairs very well when compared to the last report showing 19.8% in the first quarter of 2013 or 21.7% in the end of the fourth quarter 2012. This means that the amount of homes in negative equity has declined 33.1% since the end of the fourth quarter 2012. With construction spending and home prices on the rise, Peoples Home Equity expects to see higher property values in the future and fewer homes underwater.
With real-estate inventories in tight supply, this latest report is a positive step for home buyers. More homes on the market increases price competition creating a more active housing market. Lending companies such as Peoples Home Equity also benefit from less risk of lien holder to stop paying their mortgages. Now, more homeowners have a reason to pay their home loan as their asset (home) is worth more than the outstanding balance of a mortgage.
As property values rise, the only challenge to homeowners are climbing interest rates if there are in an adjustable rate mortgage. However, refinance opportunities to moving from adjustable rate mortgages to fixed rate loans are always a possibility for those anxious of pending higher payments. To see how much can be saved from refinancing, try the Peoples Home equity refinance calculator at PeoplesHomeequity.com or discuss savings with a loan officer at: (855) 897-0300
Ornis Mala, Peoples Home Equity, 847-226-5242, [email protected]
Share this article