Homeowners who want to buy a new house, but who paid more for their current house than they can sell it for today, feel stuck. Some are waiting for housing prices to rise so they can break even. The hitch is that when at some future date their current house goes up in price, so will the one they want to buy.
It's not a situation anyone anticipated, but it is the reality many face.
But homeowners in this situation can possibly use lower down payment financing to buy a new house. They could use savings to pay off the debt on the old mortgage, and then put a much smaller down payment on a new mortgage. For example, instead of 20% down payment, they make a 5% down payment and use the 15% they would have used for a down payment to pay off the amount due on the old mortgage.
Rather than being resigned to accepting that they have to wait to buy a new house, "underwater" homeowners might have financing solutions available where they can move on from their current house, and take advantage of today's lower prices on homes for sale.
Contact Joan Conlisk, Broker, Koenig & Strey to discuss options for selling or buying a home. 847-721-5690, jconlisk@koenigstrey.com - twitter@WinnetkaREstate
