Washington, DC (PRWEB) June 02, 2014
In recognition of June as Homeownership Month, the National Foundation for Credit Counseling® (NFCC) today released the results of a recent poll revealing that close to one in five respondents do not believe that taking on a mortgage is worth the risk. This attitude is consistent with the U.S. Census Bureau’s current report highlighting the declining rate of homeownership. The present rate of 64.8 percent representing the first quarter 2014 is the lowest homeownership rate in almost 19 years.
“The housing crisis, recession and continued economic instability appear to have shaken the confidence of many Americans, particularly when it comes to big-ticket items such as a house,” said Gail Cunningham, spokesperson for the NFCC. “However, the unwillingness to take on a mortgage loan may be a smart decision for some, as many borrowers have learned the hard way that homeownership does not come with a guarantee of continually increasing equity.”
Although the benefits of owning a home are many, until a person is fully prepared to assume responsibilities such as a mortgage payment, home and lawn maintenance, improvements, and taxes and insurance, renting may be right for them. Homeownership is about much more than buying a home. Renting until they are in a position to buy can help a person avoid a costly mistake, including the negative ramifications of foreclosure.
Consider some of the benefits that renting provides:
Cunningham noted that it is critical to remember that buying a home represents a large financial obligation extending over a long period of time and is usually a person’s largest investment. Consumers should consider homeownership only after careful deliberation and when the timing is right for their unique situation.
If buying a home is the ultimate goal, take advantage of an NFCC member agency homebuyer workshop. To find out more information, or to have personalized answers to your homebuying questions, reach out to an NFCC certified housing professional by calling (800) 388-2227. To find an agency online go to http://www.NFCC.org.
The NFCC poll question and answers are below:
Which of the following best represents your attitude toward owning a home?
A. Owning a home remains a critical part of wealth building = 82%
B. A mortgage is a risk I’m not willing to assume – 18%
Note: The NFCC’s May Financial Literacy Opinion Index was conducted via the homepage of the NFCC website (http://www.DebtAdvice.org) from May1–31, 2014, and was answered by 829 individuals.
The National Foundation for Credit Counseling (NFCC), founded in 1951, is the nation’s largest and longest serving national nonprofit financial counseling organization. The NFCC’s mission is to promote the national agenda for financially responsible behavior, and build capacity for its members to deliver the highest-quality financial education and counseling services. NFCC Members annually help millions of consumers through more than 600 community-based offices nationwide. For free and affordable confidential advice through a reputable NFCC Member, call (800) 388-2227, (en Español (800) 682-9832) or visit http://www.nfcc.org.