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Personal Finance Tips for Homeowners in a Troubled Economy

The housing market is currently going through one of its biggest transitions in decades. Not since the early 2000s has the economy been in such a fragile state and homeowners so mired in confusion about what to do. With prices so volatile, some wonder if it’s wise to sell at a high-water mark. Others are trying to figure out how to find financial resources to cover unexpected bills during rough times of underemployment and layoffs. And a few look at the economic uncertainty as a chance to pay mortgages down faster, add extra rooms, refinance their terms, and more. Whatever your particular situation is, the following are a few suggestions for weathering the storm of inflation, high unemployment, and a generally terrible year for all markets and business segments.

Stay Put

In a volatile economy, it’s almost always a good idea to stay put rather than to put your property on the market. There are numerous reasons for this tactic, the primary one being that you might sell at exactly the wrong time, just before prices jump. Then, you’re left both frustrated at missing an opportunity and with less capital to put into a new, higher priced home. While there are certainly proven methods to make money in real estate leave those risks to the investors and air on the side of caution as a traditional homeowner.

Consider Using the Power of Equity

When the going gets tough, homeowners can take advantage of their built-up equity by taking out home equity loans. In fact, working adults turn to these types of loans, as well as to HELOCs (home equity lines of credit) for dozens of different reasons. If you’re currently an owner who has never explored this concept, a smart way to learn more is to review an online guide. In it, you’ll see current comparisons of HELOC rates offered by many of the nation’s top lenders. So, whether you want to gain an understanding about HELOCs or home equity loans and see what kinds of rates are out there, check out the guide and see why so many people use their ownership in real estate to empower their financial standing.

Explore Refinancing

If monthly mortgage payments are getting you down after a layoff, consider refinancing to get a longer repayment period, more favorable interest rates, and lower monthly payments. There’s a lot that goes into a refi, and the final arrangement depends on dozens of factors that are unique to your situation, but for many, it’s helpful to at least discuss the option with a trusted financial advisor.

Make Double Mortgage Payments

If you’re not sure which way the housing market is headed but want some insurance and peace of mind, consider trying to pay off a mortgage ahead of time to achieve it. Of course, this strategy only works if you can afford it, but it does achieve several very good results simultaneously. For starters, you’ll get out of debt sooner and stand to save a lot in interest charges. Check with your lender to see if an early payoff makes sense before opting for this route. However, most owners not only chop interest charges but enjoy the fact of living without the burden of a monthly mortgage payment. If you’re looking for financial peace of mind, an early payoff during turbulent times can be a lifesaver.

Author: nohoarts