Juicy Estates: Mortgage Blog

“Make It Up On The Buy”

“Make it up on the buy”…..I don’t know who said it first but he or she should get some sort of prize.  I have been hearing industry people (i.e. Realtors, Mortgage Bankers and Real Estate Pundits) use this phrase for about the past year as a means of alleviating a home owners anxiety about ……

 

 

 ……selling in the current environment.   I have now heard it regergitated by several members of the general public which is surprising for a variety of reasons.  The most obvious reason in my mind is that here in the land of the straight through the mouth poison, give it to me now, immediate gratification some home owners realize that if they are selling at the bottom they are also buying at the bottom.  This is no small revelation given the fact that one of the primary driving forces behind the creation of the housing bubble was the “live beyond your means” financial planning adopted by home owners across the nation. 

As a Certified Mortgage Planner I spend a great deal of time and energy ensuring that my clients conserve their home equity not consume it.  Consuming home equity is short term low budget thinking and is the modern day opiate of the masses. 

Make it up on the buy actually makes sense if you plan properly, intend to stay in your new home for at least 5-7 years and do not intend to use the equity in that new home to fuel a lifestyle you otherwise could not afford.

This entry was posted on Sunday, November 16th, 2008 at 9:30 am and is filed under Home, Mortgage News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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