Mortgages in America are costing people more money than their houses are worth. Part of the reason is because of the housing booms in some states. People also took out mortgages when the price of housing was at it's highest. Now since the housing market has almost hit rock bottom the value of their houses has decreased. People are now paying mortgages on their house that was originally worth more than it is now. Some of these states are just now paying the price for the crash of the housing market. People are also now loosing money on their homes because if they are trying to sell their house they will not receive back the amount of money they paid for it. This is why it is the best time to buy a house because when the economy does recover the house would be worth more than when it was bought. So what do you think about the housing market? And do you think it is right for the people to be paying more for their house than it is worth?
2 comments:
I think how you see the housing market at this point depends on what you want out of it right now. If you are someone with a house and are trying to sell it, right now you'd see it as horrible because it's extremely difficult to sell at a reasonable price. BUT, if you are someone out there trying to buy a house now is the PERFECT time to buy it because you can buy a house "dirt" cheap for now, then eventually sell it for much more (like you said in your post).
To answer your second question, i think it is wrong that people are having to pay more than what their house is worth, but I also think that if more people bought houses that they can afford then they wouldn't have to get as many loans (or as big a loan) and they wouldn't have to take as much time to pay them back...therefore they would pay less.
I don't think it is right that people are paying more for their house than it is worth. I think it would be smart for peoples mortgages to go down according to the houses value. That way we are not killing home owners and giving them money to put back into the economy.
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