California Association Offers Mortgage Protection

California Association Offers Mortgage Protection

To make home buyers less skittish about purchasing a home amid concerns about job security, the California Association of REALTORS® has created a Housing Affordability Fund to provide mortgage protection.

The fund will pay buyers' mortgages for six months, up to $1,500 per month, if they become unemployed.

Eligible buyers are salaried employees who have not owned a home during the last three years, are buying properties in California between April 2 and the end of the year, and are working with a real estate pro on their transaction.

Funded by donations from REALTORS® and REALTOR® associations statewide, the program also offers $750 per month for six months to eligible co-buyers, along with a $10,000 death benefit and accidental disability coverage.

Source: American Banker, Kate Berry (04/06/09)

REALTOR® Magazine-Daily News-California Association Offers Mortgage Protection

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Tread Carefully When Making a Low-Ball Offer

Tread Carefully When Making a Low-Ball Offer
These days, it’s easier to make a low-ball offer than it used to be, but still it’s important to be smart. Here are some things that a real estate practitioner and would-be buyer should consider when contemplating such an offer:

— Use foreclosures as comps carefully. Look realistically at the prices foreclosures in the neighborhood brought. Foreclosures aren’t good comps if the homes were stripped of appliances, pipes, HVAC, etc.
— Examine details of short sales critically. How many liens were there against low-selling short sales? If there were no secondary liens, the lender had considerable flexibility.
— Establish realistic time frames. Even in the best of circumstances, foreclosure takes a long time. Will the seller play the waiting game? How long have houses whose owners have equity stayed on the market? Is the buyer in a hurry?

If your buyer makes a low-ball offer, the bank probably won’t be in any rush to take it. They’ll likely just keep soliciting offers without coming back with a counter. Ultimately, the property is likely to sell for a higher price and, chances are, you and your buyer won’t know it until the deal is done.

Source: ThinkGlinck, Ilyce R. Glink (03/30/2009)

REALTOR® Magazine-Daily News-Tread Carefully When Making a Low-Ball Offer

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"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR

Cell: 619.850.4174 e-Fax: 619.512.5156

www.MyRealtorBarbie.com

Barbarainc@gmail.com

Coldwell Banker Nautilus

9535 Mission Gorge Rd #E

Santee, Ca 92071

Lic. #01742839

Property Tax Info Is a Few Clicks Away

The Lincoln Institute of Land Policy has put its property tax database online. The database is a comprehensive source of information about finance in every state and many municipalities.

Users can manipulate the database to compare property tax laws, rates, and assessment rules, and to identify property tax relief programs.

The institute, which is associated with The George Washington University in Washington, D.C., plans to shortly add a database of property values across the United States.

Source: Lincoln Institute of Land Policy (06/08/2009)

REALTOR® Magazine-Daily News-Property Tax Info Is a Few Clicks Away

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"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR

Cell: 619.850.4174 e-Fax: 619.512.5156

www.MyRealtorBarbie.com

Barbarainc@gmail.com

Coldwell Banker Nautilus

9535 Mission Gorge Rd #E

Santee, Ca 92071

Lic. #01742839

With Economy Improving, Rates Become Focus

REALTOR® Magazine-Daily News-With Economy Improving, Rates Become Focus

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“Foreclosure Moratorium” explained

Recent news headlines have caused confusion by mischaracterizing the new California Foreclosure Prevention Act as a “90-day moratorium” and incorrectly stating that the lender must modify delinquent loans before it begins foreclosure. In reality, the foreclosure process for certain owner-occupied residential first trust deeds has been extended by 90 days, effective June 15, but an exemption is available for lenders with comprehensive loan modification programs as defined by the Act.

Under pre-existing law, a lender must wait three months after filing a notice of default before it can file a notice of sale. The new California Foreclosure Prevention Act extending that time frame by another 90 days may not have much practical impact. For more information call 619-850-4174 to learn more about the Housing Stimulus Laws of 2009.

"Making Real Estate Simple!"

Barbara Ann Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.MyRealtorBarbie.com
Barbarainc@gmail.com

Coldwell Banker Nautilus
9535 Mission Gorge Rd #E
Santee, Ca 92071

Green Tip: What's your Water Footprint

Green Tip of the Week: What’s your water footprint?
To learn how water-intensive your lifestyle is and how to lessen your
“water footprint,” visit Waterfootprint.org

"Making Real Estate Simple!"

Barbara Ann Paul Wibe, e-PRO, REALTOR
Cell: 619.850.4174 e-Fax: 619.512.5156

www.MyRealtorBarbie.com
Barbarainc@gmail.com

Coldwell Banker Nautilus
9535 Mission Gorge Rd #E
Santee, Ca 92071

Industry Lobbies to Extend Buyer Tax Credit

Industry Lobbies to Extend Buyer Tax Credit
Key organizations in the housing industry are urging Congress to increase the $8,000 home buyer credit to $15,000 and make it available to all home buyers instead of just those buying a first home.

"What is being billed as a recovery is not showing up in the cash register yet," says Richard A. Smith, CEO of Realogy Corp. and a member of the Business Roundtable, which is orchestrating the lobbying effort.

The Roundtable’s campaign is also pushing Congress to make permanent expanded limits for loans eligible for government purchase or backing. The limit is now $729,750 in high-cost housing markets.

Source: The Wall Street Journal, Nick Timiraos (06/10/2009)

April sales and price report

For release:
Thursday, May 28, 2009

C.A.R. reports April home sales increased 49.2 percent, median home price declined 36.5 percent

Price Stabilization Is First Step to Recovery

Price Stabilization Is First Step to Recovery 
Home prices must stabilize before the broader economy can turn around, a panel of housing and economic experts said yesterday at a real estate summit hosted by the NATIONAL ASSOCIATION OF REALTORS® as part of its Midyear Legislative Meetings in Washington, D.C., this week.

Although there are encouraging signs in the housing market—including a pick-up of home sales in previously hard-hit markets, record affordability, and continuing low interest rates—prices have not yet hit bottom. 

That’s keeping many households on the fence and making it hard for those who do jump in to get financing in the conventional market. What’s more, it’s making it harder for troubled homeowners to refinance, leading to more distressed sales, and thus further erosion in prices.

Tax Credit Bridge Loans on the Way

To put a floor under the market, the federal government must continue to intervene, panelists said, and expanding the first-time homebuyer tax credit is a good place to start. The credit should be expanded to all households, including those with higher incomes, increased significantly in value, perhaps to $15,000 to $16,000 instead of the current $8,000. 

“Then it would start move real estate,” said Robert Sibcy, president of Sibcy Cline, REALTORS®, based in Ohio. 

In a positive move, the U.S. Department of Housing and Urban Development is set to roll out guidelines permitting HUD-approved lenders, public housing finance agencies, and some nonprofit organizations to make bridge loans to home buyers. The loans would be collateralized by the $8,000 tax credit, giving buyers the upfront funds for a down payment. 

The inability to use the credit for the down payment has been a major stumbling block for the tax credit. NAR has been calling for HUD to use its authority to allow the bridge loans. 

During the summit, HUD Secretary Shaun Donovan announced that HUD has decided to allow bridge loans, sparking a loud cheer of appreciation from more than 1,000 REALTORS® attending the session. 

“We want FHA consumers to access the credit to use as a down payment,” Donovan said. “I want to thank NAR for its partnership with FHA.” More details on the guidelines will be released in a few days, he said. 

Donovan said the credit is expected to stimulate 100,000 first-time homebuyer purchases and 60,000 move-up purchases this year before it expires Dec. 1.

Further Government Actions Could Help

The credit alone isn’t enough to spur sales, many panelists said. Barry Bluestone, a professor of political economy at Northwestern University, called for the federal government to step in for a defined period of time, such as 18 months, to insure buyers’ home equity. 

Providing protection against price drops would remove buyers’ reluctance to get into the market now, and since the program would be of limited duration, it could lead to a critical mass of households buying in the short-term and thereby shore up prices. Bluestone said he envisions the federal government insuring up to 85 percent of an owner’s home equity. 

“This could stabilize prices over the next 18 months and cost the government practically nothing,” he said. “A small, temporary program can have a huge impact. It’s an idea whose time has come.” 

Foreclosure Actions 

The other way to stabilize prices is to finally get a handle on foreclosures, which exert heavy downward pressure on prices. Donovan said the administration is making gains in this effort with the voluntary cooperation of 14 of the country’s largest mortgage servicers, representing 75 percent of the market. 

But several panelists said the voluntary effort hasn’t proven to be effective yet, and that a new wave of foreclosures is expected this summer. 

“If modifications don’t work, we need to stop waiting for voluntary compliance,” said John Taylor, CEO of the National Community Reinvestment Coalition. “The government should buy [the loans] at fair market value, take them out of the market, modify them, and end the foreclosure crisis.”

The big worry about federal intervention among several panelists is the apparent lack of an exit strategy. It tends to be far easier for the government to get involved in the market, through interventions like the giant federal bank rescue plan, than it is to get back out. 

“Right now the Federal Reserve is the mortgage-backed securities market,” said Jay Brinkmann, chief economist for the Mortgage Bankers Association. “I don’t know the exit strategy and how long this can continue. It’s scaring off other investors. If the Fed stops buying, [what happens?] How do we get out of it?”

Don't Skimp on Mortgage Modifications

Martin Feldstein, the noted deficit hawk who chaired the Council of Economic Advisors for President Ronald Reagan, said mortgage modifications are one area where the administration shouldn’t skimp, even at the cost of growing the federal deficit, so he was disappointed that the administration is balking at the cost of that. 

Referring to comments made by HUD Secretary Donovan, he said, “I’m disappointed the HUD secretary said it’s too expensive for the government to deal with negative equity mortgages…. We still have not dealt with the overhang of underwater mortgages.”

Even without further federal intervention the housing market will turn around, the panelists agreed. 

The unknowns are how long recovery will take, how much damage will be done to the economy, and how strong the recovery will be.

The Shape of Things to Come

When the recovery does take hold, the housing market will be very different from what it was before, panelists said. The boom years of 2002–2007 were fueled not by income growth but by debt. After what’s been learned from that debacle, any future growth will have to be based on income growth, said Sarah Rosen Wartell, executive vice president of the Center for American Progress. Such growth will likely be far more moderate, but also more sustainable. 

Wartell said the Obama administration was right to focus both on short-term stimulus and investment in clean energy, education, and healthcare reform, because those are the kinds of investments that can lead to the long-term income growth.

—Robert Freedman, REALTOR® Magazine

Tax Credit Can Be Used for Down Payment

Tax Credit Can Be Used for Down Payment 
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.

Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change. 

“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..

He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

(Source: NAR)

Green Tip of the Week: Write stuff

Green Tip of the Week: Write stuff
Disposable plastic pens aren’t recyclable or biodegradable. The greener choice is refillable pens, marker, and pencils. When choosing a printer, opt for an inkjet printer, which uses 20 watts of electricity versus 300 watts for a laser printer.

Obama Administration Announces New Details on Making Home Affordable Program

Obama Administration Announces New Details 
on Making Home Affordable Program....

Parallel Second Lien Program to Help Homeowners Achieve Greater Affordability

Integration of Hope for Homeowners to Help Underwater Borrowers 
Regain Equity in their Homes

You can view the Fact Sheet and Case Examples here.

WASHINGTON – The Obama Administration today announced details of new efforts to help bring relief to responsible homeowners under the Making Home Affordable Program, including an effort to achieve greater affordability for homeowners by lowering payments on their second mortgages as well as a set of measures to help underwater borrowers stay in their homes. 

"With these latest program details, we're offering even more opportunities for borrowers to make their homes more affordable under the Administration's housing plan," said Treasury Secretary Tim Geithner. "Ensuring that responsible homeowners can afford to stay in their homes is critical to stabilizing the housing market, which is in turn critical to stabilizing our financial system overall. Every step we take forward is done with that imperative in mind."

"Today's announcements will make it easier for borrowers to modify or refinance their loans under FHA's Hope for Homeowners program," said HUD Secretary Shaun Donovan.  "We encourage Congress to enact the necessary legislative changes to make the Hope for Homeowners program an integral part of the Making Home Affordable Program."

The Second Lien Program announced today will work in tandem with first lien modifications offered under the Home Affordable Modification Program to deliver a comprehensive affordability solution for struggling borrowers. Second mortgages can create significant challenges in helping borrowers avoid foreclosure, even when a first lien is modified. Up to 50 percent of at-risk mortgages have second liens, and many properties in foreclosure have more than one lien.  Under the Second Lien Program, when a Home Affordable Modification is initiated on a first lien, servicers participating in the Second Lien Program will automatically reduce payments on the associated second lien according to a pre-set protocol.  Alternatively, servicers will have the option to extinguish the second lien in return for a lump sum payment under a pre-set formula determined by Treasury, allowing servicers to target principal extinguishment to the borrowers where extinguishment is most appropriate. 

Separately, the Administration has also announced steps to incorporate the Federal Housing Administration's (FHA) Hope for Homeowners into Making Home Affordable.  Hope for Homeowners requires the holder of the mortgage to accept a payoff below the current market value of the home, allowing the borrower to refinance into a new FHA-guaranteed loan.  Refinancing into a new loan below the home's market value takes a borrower from a position of being underwater to having equity in their home.  By increasing a homeowner's equity in the home, Hope for Homeowners can produce a better outcome for borrowers who qualify. 

Under the changes announced today and, when evaluating borrowers for a Home Affordable Modification, servicers will be required to determine eligibility for a Hope for Homeowners refinancing.  Where Hope for Homeowners proves to be viable, the servicer must offer this option to the borrower.  To ensure proper alignment of incentives, servicers and lenders will receive pay-for-success payments for Hope for Homeowners refinancings similar to those offered for Home Affordable Modifications.  These additional supports are designed to work in tandem and take effect with the improved and expanded program under consideration by Congress.  The Administration supports legislation to strengthen Hope for Homeowners so that it can function effectively as an integral part of the Making Home Affordable Program.

Making Home Affordable, a comprehensive plan to stabilize the U.S. housing market, was first announced by the Administration on February 18.  The three part program includes aggressive measures to support low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac; a Home Affordable Refinance Program, which will provide new access to refinancing for up to 4 to 5 million homeowners; and a Home Affordable Modification Program, which will reduce monthly payments on existing first lien mortgages for up to 3 to 4 million at-risk homeowners.  Two weeks later, the Administration published detailed guidelines for the Home Affordable Modification Program and authorized servicers to begin modifications under the plan immediately.  Twelve servicers, including the five largest, have now signed contracts and begun modifications under the program.  Between loans covered by these servicers and loans owned or securitized by Fannie Mae or Freddie Mac, more than75 percent of all loans in the country are now covered by the Making Home Affordable Program.

Continuing to bolster its outreach around the program, the Administration also announced today a new effort to engage directly with homeowners via MakingHomeAffordable.gov. Starting today, homeowners will have the ability to submit individual questions through the website to the Administration's housing team. Members of the Treasury and HUD staffs will periodically select commonly asked questions and post responses on MakingHomeAffordable.gov. To submit a question, homeowners can visitwww.MakingHomeAffordable.gov/feedback.html.  Selected questions from homeowners across the country and responses from the Administration will be available at www.MakingHomeAffordable.gov/asked-and-answered.html.

source - us treasury

MakingHomeAffordable.gov

Learn About Making Home Affordable

Refinancing
Many homeowners pay their mortgages on time but are not able to refinance to take advantage of today’s lower mortgage rates perhaps due to a decrease in the value of their home.

Modification
Many homeowners are struggling to make their monthly mortgage payments perhaps because their interest rate has increased or they have less income.

› Frequently Asked Questions 
› Beware of Foreclosure Rescue Scams - Help Is Free!!

Are You Eligible?

Please use the self-assessment tools provided on this website
to see if you are among the 7 to 9 million homeowners who may
be able to benefit from Making Home Affordable.

http://makinghomeaffordable.gov/

Foreclosures Jump as Moratorium Ends

Foreclosures jumped 46 percent in March compared to a year earlier and were up 17 percent compared to February with more than 340,000 properties affected nationwide, according to foreclosure marketer RealtyTrac.

Nearly 804,000 homes received at least one foreclosure-related notice from January through March, up from about 650,000 in the same time period a year earlier, RealtyTrac says.

Many lenders and servers had put a moratorium on foreclosures, waiting for the details of the Obama administration’s foreclosure plan. But now they are back with a vengeance. The end of the moratorium is also driving an increase in the availability of REO properties, according to RealtyTrac.

Nevada, Arizona and California had the nation’s highest foreclosure rate. Other states in the top 10 in the first quarter were Florida, Illinois, Michigan, Georgia, Idaho, Utah and Oregon.

States with the highest number of actual foreclosures, 60 percent of the total, were California, Florida, Arizona, Nevada and Illinois. Rounding out the top 10 were Michigan, Ohio, Georgia, Texas and Virginia.

One in every 159 homes nationwide was at some stage of foreclosure, according to RealtyTrac.

Source: RealtyTrac (04/09/2009)

Banks Likely to Ramp Up Foreclosures

More borrowers are expected to lose their homes to foreclosure as the nation's largest mortgage companies lift their internal moratoriums on home repossessions and start to determine which troubled borrowers cannot be helped. 

The mortgage companies say the Obama administration's housing plan has given them a better idea of which borrowers they should assist, but their actions could be politically sensitive because some lenders received funds from the federal government's financial stimulus program. 

An increase in foreclosures could lead to a further decline in residential prices and put more pressure on the earnings of banks as they write off troubled loans. 

Source: Wall Street Journal, Ruth Simon (4/15/2009)

Southern California Home Buyer's Fair this weekend

Thursday, April 16, 2008

Southern California Home Buyer’s Fair this weekend at L.A. Convention Center

Event Highlights:
.  More than 50 FREE “how to” seminars
.  Nearly 75 exhibit booths
.  Real estate market outlook from C.A.R.’s Chief Economist, Leslie Appleton-Young
.  Representatives available to discuss C.A.R.’s Housing Affordability Fund’s Mortgage Protection Program
.  Free movie tickets to the first 200 attendees each day

LOS ANGELES (April 16) – Thousands of potential home buyers are expected to converge this weekend for the second annualSouthern California Home Buyer’s Fair at the Los Angeles Convention Center in downtown Los Angeles. The Southern California Home Buyer’s Fair, open 10 a.m. to 5 p.m. Saturday, April 18, and 11 a.m. to 4 p.m., Sunday, April 19, features more than 50 educational “how-to” seminars designed to help home buyers navigate today’s real estate market with confidence and peace of mind.

The event is free to the public. In addition, the first 200 attendees each day will receive a free movie ticket (one ticket per person).

Seminar topics include monitoring and fixing credit, how to find and qualify for a home loan, and how to find and buy foreclosures, short sales, and REOs. Several of the sessions also will be offered in Spanish. One of the featured presentations includes “Market Outlook: Opportunities Abound for First-time Buyers,” which will be presented by the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) Vice President and Chief Economist Leslie Appleton-Young. The presentation will include an historical overview of the housing market, and a synopsis of the current financial situation and its impact when trying to secure a mortgage loan. Appleton-Young also will provide a preview of what consumers can expect for California’s housing market in the coming months.

The Southern California Home Buyer’s Fair (www.homebuyersfair.com) also will feature nearly 75 exhibit booths, where attendees can obtain information from industry experts about homeownership and the home-buying process. Representatives from C.A.R.’s Housing Affordability Fund will be available to discuss its recently launched Mortgage Protection Program (MPP) , which provides qualified, first-time home buyers with $1,500 per month, for six months, to help make their mortgage payments, if they lose their jobs due to layoffs. To learn more about C.A.R.’s MPP, visit the C.A.R. booth located in the exhibit hall at booth numbers 101 and 103.

The event is sponsored by the CALIFORNIA ASSOCIATION OF REALTORS ® and the Los Angeles Times.

For complete information, go to www.homebuyersfair.com.

source C.A.R.

FREE Legal Hotline, between 10 a.m. and 2 p.m

C.A.R. understands the tremendous pressure you’re facing in today’s challenging housing market.  In light of the current economic situation, C.A.R. is providing free and reduced-cost services to you.

That’s why I’m pleased to announce that beginning Saturday, April 4, you’ll be able to call the C.A.R. Legal Hotline, between 10 a.m. and 2 p.m., and speak live with an attorney.  Calls will be taken on a first-come, first-served basis.  You may call the Hotline at (213) 739-8282 anytime during the Saturday hours of operation.

The C.A.R. Legal Hotline offers free, confidential legal advice over the telephone on a vast array of real-estate related topics, such as contract interpretation, arbitration, litigation, tax issues, commission disputes, disclosure requirements, fair housing issues, and laws governing homeowners' associations.

To reach the C.A.R. Legal Hotline, call (213) 739-8282. For more information, or to submit a query via e-mail, go to http://www.car.org/legal/legal-hotline-access/.

GREEN TIP OF THE WEEK: DON’T THROW OUT YOUR TV

GREEN TIP OF THE WEEK: DON’T THROW OUT YOUR TV

The roughly 110 million U.S. households with televisions are preparing for the switch to digital television reception (postponed until June 12, 2009) by adding a converter box or upgrading to a digital-ready television. The old set may contain as much as five pounds of lead and, in some locales, it may be illegal to simply leave your old set at curbside. Visit the EPA's eCycling site (www.epa.gov/epawaste/conserve/materials/ecycling/tv-convert.htm) to learn your local recycling options.

Lose your Job? Keep your House!

I am very pleased to announce that this Thursday, April 2, C.A.R. will launch a new program designed to provide peace of mind to first-time buyers who are hesitant to enter the housing market due to concerns about potential job loss, and subsequently being unable to meet their monthly mortgage obligations.

Through the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP), first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month for up to six months to help make their mortgage payments. A qualified co-buyer also can participate in the program, for a reduced monthly benefit of $750 per month for up to six months in the event of a job loss. Program benefits also include coverage for accidental disability and a $10,000 death benefit. C.A.R.’s Housing Affordability Fund is dedicating $1 million to the program this year, and estimates that as many as 3,000 families will benefit from the program throughout 2009.

To qualify for the Mortgage Protection Program, applicants must:
. Be a first-time home buyer – someone who has not owned a home in the last three years
. Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
. Use a California REALTOR® in the transaction
. Purchase the property in California
. Be a W-2 employee (cannot be self-employed or military personnel)

First-time home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®. For applications and other information on this exciting new program, go to www.car.org/aboutus/hafmainpage/ or contact Monica Rodriguez at (213) 739-8380 or monicar@car.org.

The Mortgage Protection Program is a proactive approach by C.A.R. to address consumers’ concerns about the real estate market and their ability to make their mortgage payments should they loose their jobs. I encourage you to take full advantage of this new program by sharing information about the C.A.R.H.A.F. Mortgage Protection Program with your clients. There is no cost to either you or your clients to participate.

6 Reasons Why It's Still a Good Time to Buy

6 Reasons Why It's Still a Good Time to Buy 
The housing market is looking healthier. Here are six reasons why now is the time to jump into the market.

1. Uncle Sam is willing to help. First-time buyers (defined as anyone who hasn’t owned a home in the last three years) are entitled to a maximum $8,000 tax credit; interest rates are at record lows; and the Federal Reserve is doing its best to make mortgage loans available. (Sign up for a Webinar to learn more about the home buyer tax credit)

2. People have to live somewhere. About 800,000 new households are formed each year in this country, ensuring that the housing market will tighten, even if the economy doesn’t soar.

3. Borrowers leverage their investment. If you put $10,000 into the stock market and it earns 10 percent, you’ve earned $1,000. If you put $10,000 down on a home and its values increases 10 percent, you’ve made $10,000.

4. When prices come back up, you’ll have instant equity. In parts of the country where foreclosures have driven down prices, better times will mean the price of the home you buy will rise rapidly.

5. Mortgage costs stay the same. If you get a fixed-rate mortgage, the monthly payment stays the same – while everything else, including rent, goes upward.

6. You own it. There is something comforting in the notion that your home is your own. You can paint it any color you want, let the dog run in the back yard and hang a swing for the kids in the front.

Source: The Wall Street Journal, June Fletcher (03/27/2009)