Everyday Cheapskate: How to Stop Worrying That Your Housing Bubble Is About to Burst
You bought the biggest home they said you could qualify for, taking advantage of low rates and creative financing. Who knew you could afford such a great house?
But now, several years later, your low interest rate has disappeared, and the adjustable-rate mortgage that seemed like a good idea keeps pushing your payments higher. Or perhaps you took out a fixed-rate mortgage with an inflated interest rate due to your super low down payment.
If all that isn't bad enough, instead of increasing in value, your home's market value appears to be slipping. You worry it's about to take a nosedive.
A recent survey found that 58% of Americans are concerned the real estate market will crash, that there will be a "housing bubble and price correction" by 2020. Eighty-three percent believe it's a good time to sell.
On the other hand, there are plenty of experts who contend that is wrong -- a housing crash isn't imminent.
Rather than getting caught up with worry over the big picture or arguing about who's right and who's wrong, here are eight specific things you can do right now to make sure your personal housing bubble doesn't burst.
If you can afford your house payment, a falling market is not likely to hurt you, provided you're not planning to sell right now. Your home's market value is only a number on paper.
While you might be tempted to bail out, selling now might cause you to suffer a loss needlessly. Enjoy your home. Time has a way of righting a slumping market. If you can hang on to a home for five to 10 years or more, you improve your chances of riding out a downturn unscathed.