Money Matters: How to Prevent Top 5 Financial Regrets, Buying a House #3
This post is from our friends at Learnvest.com and offers a great deal of information on how to avoid the top 5 Financial Regrets. This week, We focus on Buying a House. The past two weeks, we examined Habitually Overspending and Inadequately Saving. Over the next several weeks, we will take a close look at all 5 Top Financial Regrets.
- Habitually Overspending
- Inadequately saving
- Buying a house
- Not buying a house
- Not saving enough for retirement
When reading through these regrets and solutions, make sure to keep in mind what’s right for you in your situation. People are different.
3. Buying a House
It’s the other side of the coin: regretting taking the plunge and buying a house. Since we don’t imagine people are regretting having somewhere to live, it’s likely that this regret stems from having what is called an underwater mortgage, a situation that one in three United States homeowners is currently struggling with.
- This means that they owe much more on the house than it’s worth in the current market, so they can’t sell it unless they have the cash to make up the difference on hand. This situation, in which the homeowner can’t afford the mortgage payments but also can’t afford to sell, often leads to foreclosure.
How to Keep It From Happening: To prevent homebuyer remorse, you need to buy only when it’s right for you (see above). If you’re already in the unfortunate situation of having an underwater mortgage, we present your options here. For some people, strategic default–simply walking away from the house and leaving the mortgage unpaid–is a viable option, but that depends where you live and on your individual situation. To consider whether it’s right for you, read this.
- 85% of Americans Want to Own Their Own Home (athomesense.com)