Home Design

Determining Your Home`s Value

2005-09-09T10:29:00.000-07:00

By Jeffrey D. Leiser

Determining your home`s value, and setting a price, is probably the most important step in selling your home. Why? Because if your home is overpriced for your area, no matter what the cost of improvements that you have made on your house, buyers will shy away from it.

On the other hand, an underpriced home will probably move on and off the market because of a quick sale, but there goes your profit. So, to avoid losing time and money, you must properly price and present your home.

1) The easiest way to determine your home`s value is to pay for an appraisal, and price your home close to the appraisal price. You can find Residential Fee Appraisers listed in the Yellow Pages under Appraisers. For about two to three hundred dollars, they will give you a by-unit (room to room, fixtures, amenities; and square footage) comparison appraisal to similar property in your area. The downside is it will cost you money, but the upside is that you have in writing a professional appraisal on your home which you can display to prospective buyers. This can be an added selling feature. But there are other methods you can use, which won`t cost you anything.

2) Another way to find out the value of your home is to interview three or four real estate agents in your area. Of course, you will need to decide whether you want to use a realtor, or whether you want to go "for sale by owner." If you use a realtor, he or she can help you determine your home`s value, and the best asking price to set. But you may find yourself saying, "Gee, if I sell my house myself, I can save thousands of dollars in realtor commissions." If you would like to go it alone, you can find advice on How To Sell Your House in Six Easy Steps at http://www.paradoxpro.com/prdx.hosale.html

If and when you contact a realtor, talk to an agent directly. Let him or her know up front if your intention is to sell your home yourself. You can always use the agent anyway if you also intend to buy a home, since an agent`s services are free to the buyer. Usually you can get an agent to provide a bit of information about your current home, as long is there is some commission in it somewhere.

Ask the realtor for a CMA (Comparative Market Analysis) on your house. You will need to supply the agent with information pertaining to your house and the area. List the number of baths and bedrooms, and the total number of rooms. Do not count the basement, garage or bath areas as rooms.

Next make a list of up to 10 roads within a half mile to mile radius. Include your address, zip code and school district. This furnishes the agent with all the criteria necessary to run a market analysis. A CMA consists of the selling prices of the homes in the surrounding area that have similar traits to your house. The comparable should cover a six-month to one-year period.

Some web sites offer to provide a CMA. Many of them are based on tax rolls, and often charge for the service. At one time, there were several sites that allowed you to access the information anonymously, but a recent check of over 100 sites in a leading search engine showed that today`s sites require you to provide either money, personal information, or both.

3) A third method of figuring your house`s value is to determine what your city or county has set the value at, based on your property taxes. Let`s say the property taxes on your house are $2000 a year and your tax base is 1 percent (this is a percentage in which local municipalities multiply their estimate of the worth of your home to arrive at a yearly tax figure). The city or county in which you live uses many methods to determine what they feel is the worth of your home. To determine this estimated value, you need to multiply your base by the yearly tax amount. Usually the value, your tax base, and the yearly property tax amount are located on the same issued tax statement or bill. $2000.00 x .01 = $200, 000.00 YOUR TAX BASE OF ONE PERCENT (.01) MULTIPLIED BY YOUR YEARLY TAX OF TWO THOUSAND DOLLARS ($2000.00) = ESTIMATED VALUE OF YOUR HOUSE, OR $200, 000.00.

The problem with this method is that there have been great fluctuations in tax valuations in the past 20 years, and your property taxes may or may not be a good way to estimate your home`s value. Often it is best to try each of the three methods, as a way to check each of the other methods for accuracy.

Even the realtor`s conditional CMA may not be on the money. This is where a comparison between the information given to you by the real estate agent and the calculated value of your home may help.

Let`s say the agent tells you $310,000 is the average selling price in your area for a house with similar square footage and features. Another important factor is how long the houses stayed on the market before selling. A complete CMA will include a brief description of each comparable home and the days on the market before it sold.

Use the comparables to price your home, but if the market is fair in your area (90 to 120 days on the market) deduct 2%, and for a poor market (120 days or more), subtract 3%. Market movement is important. Likewise, if the houses move really fast, you may be able to set your price slightly higher. You want a starting price high enough to make the profit you want, but not so high as to scare off buyers.

Be aware that none of the suggested ways of determining your property`s worth referred to in this text will guarantee the house will sell for your calculated price. The marketplace is always the final word in regard to actual profit you can expect and the speed at which your home will sell.

Jeffrey D. Leiser is the author of "You Can Sell Your House: For Sale By Owner" which includes 10 forms and a 60 page guide, plus a bonus report on salesmanship. Sell Your House in Six Easy Steps, http://www.paradoxpro.com/prdx.hosale.html

Spring & Home Decorating - A Fresh New Look

2005-08-17T10:41:00.000-07:00

By Bonnie P Carrier

Open Windows … Curtains fluttering from a warm breeze … The air smells fresh and clean … Buds on the trees are beginning to open … Tiny flowers are popping up threw the ground … Finally that little bird with the red breast is back

All of these can only mean one thing “Spring” has arrived.

Those days of blustery storms and frosty drafts have come to an end.

With spring comes a renewed burst of energy. Having been shut inside for months we now want to get up, get going and do things.

This presents a marvelous opportunity for home decorating, a chance to give the inside of our homes a fresh clean look to match the emerging new look outside.

You now want to think light, bright and breezy, exactly like a beautiful spring day.

The following are a few ideas to help get you started.

Hang a wreath covered with pretty silk flowers on the front door. This makes a cheerful greeting to anyone entering you home.

Replace heavier drapes with lighter fabric and color. For example: Pastel colored shears or Café Curtains. If privacy is not an issue, try just a lightweight valance or scarf across the top of the window. The idea here is to let the sunshine in.

A new fresh look for you furniture might be just the ticket. Slipcovers are the perfect solution. If the budget is a concern, slipcover just one piece in the living or family room. Another idea is to cover the dinning chairs; this in itself will give a kitchen or dinning room a fresh look.

Painting rooms a lighter color can make a dramatic change. In fact color can completely alter the look and feel of a space.

Bring in spring with accessories.

Floral arrangements

Lighter weight throws, it can get a little chilly in the evening

Decorative pillows in lighter colors or with a floral pattern

Lighter weight area rugs like sisal, which will also work great into the summer, as they are easy to clean. Choose a natural color sisal rug and get creative, use stencils, paint squares, stripes or applying appliqués.

Scent is another part of your spring home decorating. Candles and Potpourri are not just for the winter months. There are many lighter scents perfect for bringing in spring. The following are just a few examples of what is available.

Lilac

Rose

Tulip

Heather

No matter what changes you decide to make in your home decorating this spring here’s something to remember, “As the days become warmer open those windows and let the fresh air fill your home.” It’s one of the best ways of bringing spring in and best of all its Free.

One final thought, even though the snow is gone and the grass is turning green, please remember our feathered friends. They will always give us enjoyment and entertainment no matter what the season maybe.

--

Copyright © 2004 bonnie carrier.
Bonnie P. Carrier is the creator of Savvy Home Decorating. She is the mother to two grown daughters and a very spoiled 4yr old Blue Merle Sheltie named Toby. Having been a homemaker for over 23yrs has provided years of experience in budget decorating and organization. Stop by Savvy Home Decorating
(http://www.savvy-home-decorating.com)- for ideas and tips on budget decorating:

A Berry Holiday Treat

2005-07-18T11:44:00.000-07:00

By Arleen M. Kaptur

A tiny berry and so traditional! Its very color is perfectly suited to all Holiday mealtimes and home decor as well.
A string of cranberries mingled with popcorn, dried frui, baubles, and sprigs of holly or evergreen add a nostalgic touch to your home. Dried cranberries are fragrant and emit an essence that reminds everyone who enters your home that the true Holiday spirit is here and is being celebrated.
**
A quick idea: put cranberries into the water in a clear vase before adding your flowers and greenery-instantly you have a Holiday accent.
**
There is the very basic cranberry sauce:
2 cups sugar, 2 cups water, l lb. (4 cups) fresh cranberries
Combine sugar and water in pan; stir to dissolve sugar. Heat to boiling; boil 5 minds. Add cranberries; cook till skins pop, about 3 minds. Remove from heat. Serve sauce warm or chilled.
Basic, beautiful and a decorative touch of Holiday Cheer to mealtimes!
**
Add a historical accent to your holiday meals with a colonial drink called a shrub. the Pilgrims were proud to serve this beverage and so should you - Shrubs served in colonial days were fruit-based drinks liberally spiked with brandy or rum - or whatever spirited drink was at hand.
Today`s version:
4 cups raspberry sherbet, softened, 4 cups cranberry juice cocktail, 1/4 cup lemon juice, 3 cups chilled ginger ale- Spoon half of the sherbet into a blender. Pour in half of the cranberry juice and half of the lemon juice. Process until smooth. Pour into 6 glasses. Repeat with remaining cranberry juice and remaining lemon juice. Carefully pour some of the ginger ale down the side of each glass. Stir to muddle
slightly.
A toast to you and your loved ones!
************************************
Cranberries - they generously give of their color, texture and essence for our enjoyment and our Holiday meal plans. Don`t forget our fine-feathered friends - stirng a few garlands, along with some poppped corn for them as well.
However you use cranberries -
ENJOY!
©Arleen M. Kaptur 2002 November

Arleen has written numerous books, articles, and newsletters:
http://www.Arleens-RusticLiving.com
http://www.arleenssite.com

Home loans: – To substantiate financial possibilities on your land

2005-07-05T16:25:00.000-07:00

By Amanda Thompson

Availability of Home loans is in full bloom. They are uncomplicated, tenable, easily available, very flexible and tailor-made for homeowners. They are offered by almost every loan lending or financial institution. Home loans are like omnipresent and yet encountering the requisite home loan is like a Gordian knot. Sometimes innumerable alternatives have the obvious effect of leaving you irresolute of which home loan to settle for.

Low interest rates, low APR, flexible loan terms, credit history not taken into account – you have heard all that before in context of home loans. As a layman you don’t understand that enough. But you absolutely need a home loan. So where do you begin - with the meaning of home loan? That is perhaps the right place to start. Home loans are loans taken against your home and more often referred to as mortgages. In a home loan your home is your personal guarantee for the money that you are taking. The value of your property must have increased enormously since the time you bought this
house. A home loan implies drawing on this value of your property to get to you the financial assistance that you necessitate.

Home loans are available in all configurations and contours. You won’t find any more modifications anywhere except with home loans. Home loans in UK are obtainable in the form of adjustable rate home loans, fixed rate home loans, balloon rate home loans. Do your homework before you make your judgment about the home loans that is right for you, your future financial picture.

Homework? Well, yes there is a lot you can do to lead yourself to the home loans that you need. First try to understand the meanings of the different home loans. There are always two sides to a story. Therefore it is highly recommended to learn about the different home loans types. This is your homework.

Fixed rate home loans are perhaps the most frequently used home loans by homeowners everywhere. The interest rates on home loans are fixed or rather stable. The interest rates that you settle on will be the same rate that you pay for the entire home loan term whether it is 15 year or 30 year.
Fixed rate home loans are inflation resistant. An increase in the loan rates or taxes or insurance costs won’t effect your home loan payment. Fixed rate home loans are low risk home loans. Since you are aware of your monthly income before hand, you are free to sketch loan term financial goals.

Adjustable rate home loans start with low interest rate and low monthly payments. Adjustable rate home loans imply that the interest rate can change during loan term which will either increase or decrease your monthly payment. It is an unpredictable situation. Adjustable rate home loans have adjustment periods that will decide how often the interest rates will change. The popularity of this home loan lies with the fact that it start with low interest rates.

Balloon mortgage are based on a 30 year repayment plan which after 5 to 7 year term you can either repay the entire mortgage or reset the entire home loan. Balloon mortgages are again of two types - 7/23 and 5/25. The 1st number (7 or 5) is the number of years before the balloon maturity date. The 2nd number (23 or 25) is the balance of the term.

Home loans interest rate is dependent on your credit status. This simply means that the interest rate on your home loan will be high if your credit history is faulty. Poor credit score won’t prevent your odds at finding the home loan but it will certainly have impact on the interest rate. Down payment is another interest oriented term. The more the down payment, the lower will be the interest rate. Don’t hesitate to ask questions about your home loan and make sure you completely understand the terms and conditions.

Another factor is debt-to-income ratio. It is the amount you make each month as compared to the amount of your monthly debt. Finding a good home loan lender is also crucial. Pre qualifying for the home loans will negate the tediousness associated with the process of getting a home loan. Compare mortgage rates and mortgage services offered by various lenders to know the best home loan that befits your motives.

A ‘right home loan’ is not an idealistic phrase. On the contrary it is not only realistic but also has the ability to save a lot of money over the term of your home loan. Savings on home loans makes sense to every homeowner. Doesn’t it? A home loan makes sense for every homeowner. With lender competing against each other why don’t you go and catch the high tide. Catch the high tide i.e. your kind of home loan!

Amanda Thompson holds a Bachelor’s degree in Commerce from CPIT and has completed her master’s in Business Administration from IGNOU. She is as cautious about her finances as any person reading this is. She is working as financial consultant for http://www.loansfiesta.co.uk To find a Loans
uk,secured loans,unsecured loans,Debt consolidation at cheap rates that best suits your needs visit http://www.loansfiesta.co.uk

Home Improvement: Loans to Build Your Very Own Comfort Zone

2005-06-23T12:04:00.000-07:00

By Amanda Thompson

Home is your sanctuary. The place you go back to every night and somehow it doesn’t seem right. Your home is an expression of who you are and if you walk out each of a place that you does not seem to belong to you then probably your home needs improvement. You are probably guessing how you are going to make the payments for your home improvement. Your home remodeling plans are no longer to be restricted to the thought stages. Let them see the light of day. Home improvement loans will provide you with a dependable groundwork to build on the home you have a vision of.

Home improvement is predominantly triggered by the desire to own a comfortable home. Home improvement can be slightly difficult, if your financial position is tight. This is where home improvement loans have a function to perform. Being a homeowner you could not have been in a better position to apply for a home improvement loan. Home improvement loans are functional for any kind of improvement or home extension. Home improvement loan is available for double glazing, new conservatory, heating system, new kitchen, rewiring and plumbing or any home remodeling that you can think of. The
cost of home improvements is generally paid by savings or revolving credits like credit or store cards. Credit cards imply no borrowing. In many ways it is idyllic for there are no repayments to be made. But credit cards can be an expensive option especially if the borrowing extends beyond the credit limit. Store card interest rates are as high as 30%. In every circumstance a personal loan for home improvement is a more disciplined and cheaper option.

Home improvement plans can be funded by means of a secured loan, unsecured loan, remortgaging or taking further advance on your mortgage. Unsecured home improvement offers a typical flat rate of interest 12-14%. But a little bit of research will get you an unsecured home improvement loan for 10%. A secured home improvement loan indisputably attracts lower rate of interest. APR of a secured loan is around 7%. You can borrow anything from £ 5,000 to £ 75,000 for home improvement. The repayment term can be extended from 5 years to 25 years depending on the loan amount, your available income
and the amount of equity in the property.

In the contemporary context, one of the ingenious thing one can do with a home’s equity is to put it right back into the home. Home improvement is besides providing you with the much needed changes, increases the equity of your home. There has been a rise in home improvement loans in the past decade. If the property cannot be sold then home improvement is the answer. Home improvement is remarkable if your primary motive is to raise large amounts. But not every home improvement will improve the resale value of your home. So it is recommended that you stick to those home improvement plans that give you the maximum returns. It is important to remember that over enthusiasm with improvement won’t lead to any gain. It is difficult to recover investment in a home that is already more valuable than those in the neighbourhood. And keep your whimsical tastes to respite for there might not be many mainstream homebuyers for them.

Home improvement loan might seem like an unreal thing for many homeowners. But the newer more sophisticated home improvement loan options are very easy to adjust to. They are designed to keeping in mind the conditions and status of every homeowner. The ever expanding mortgage market gives you an opportunity to apply for a mortgage for home improvements and that too in the most uncomplicated manner. More and more homeowners are administering for remortgage to raise capital for home improvements. By completely remortgaging the consolidated loan, the entire mortgage market is assailable to the loan borrower. If you care enough to shop around then you can find a very reasonable and cheap mortgage loan for home improvement.

Home improvement loans are a package that includes any kind of meliorations that you can think of. It is your home and you have every right to improve it the way you want to. Contrary to accepted conviction home improvements are vital and absolutely necessary. Why home improvement? If that is what people ask when you suggest it then they probably don’t know what is the meaning of comfortable living is. Home improvements improve the quality of life. We work hard and save money to buy personal satisfaction and comfort. If the house that we have build does not provide the relief then perhaps home improvement is what you need.

amandacthompson@gmail.com

How To Find a Real Estate Agent

2005-06-07T23:26:00.000-07:00

By Alex Fir

You may be of the opinion that you don’t need a real estate agent and that using one will add to the cost of buying your new home.

The fact is that a real estate agent’s fees are typically paid by the seller of the home. So, as a buyer, you can get the services of a professional real estate agent without having to directly pay for it. Please confirm this in any paperwork or contracts that a real estate agent may provide because policies vary greatly by state and company. Be sure to ask about fees when you interview agents.

Most real estate agents may work with buyers and sellers but often they specialize in working with one or the other. Make sure the agent that you choose has experience working with buyers and with no down payment transactions.

Be careful if you are speaking with a real estate agent and they don’t seem to recognize terms like “Down Payment Assistance Program”.

Start making a list of possible real estate agents to interview with referrals from your lender, friends and family.

A referral from the lender is great because you get the services from people that have worked together in the past and are already familiar with each other`s systems. This can help prevent any last minute surprises or obstacles.

Questions to ask while you are interviewing real estate agents:

Please explain your fees.

Are you familiar with any no down payment financing programs?

Have you been involved with no down payment buyers in the past?

Would you mind providing sample contracts so I may review them?

Does it clearly state in the contract who will be paying your fees?

How long have you been a real estate agent?

Do you mostly work with buyers or sellers?

I’m looking for a home in the areas of ______. How familiar are you with those areas?

What specific steps would you take to help me find the home I am looking for?

You should also try to get an idea of these factors while you are speaking with the agent.

- Does this person have good negotiating skills?

- Do you feel this agent is trying to understand your situation so that they can properly represent you to sellers?

- How much knowledge does the agent have about mortgage markets?

Do you need business or finance information? Visit "Business Finance information", FREE web site for those who want to learn how to achieve success in business and finance.
http://www.business-finance-site.com

Simple Website Design for High Rankings : A Legitimate Home Business Idea

2005-06-06T10:03:00.000-07:00

By Alexandra DeBoer

I began my adventure as an at home web designer almost three years ago, and today feel very pleased with the outcome. I started out wanting a website created for my home craft business, and had my husband Ben, a network administrator, show me some simple HTML. I gradually fell in love with the detailed world of web design, creating content, and figuring out what the search engines looked for in a high ranking web site.

Today, I have created several successful websites, many high ranking pages, written several articles, been interviewed, paid for my work, and taught many people how to create high ranking websites. I began without any formal training, and do believe that this field is wide open for anyone truly passionate about learning. It is a wonderful, and legitimate home business opportunity for anyone who has the desire to learn.

I really want to get the word out that a series of small, simple steps can successfully optimize a website, and that ANYONE can learn how to do this, and even charge others a good rate to do so!

I would recommend that anyone interested in this career should be: Entrepreneurial in nature Patient Computer friendly and willing to learn some basic HTML A good writer A person who enjoys teaching others and communicating

The first step would be to create some websites in the computer for yourself, and practice, practice, practice. I would also recommend subscribing to some free web design newsletters in order to really keep up with what is going on with search engine and programming trends. Once you feel confident in your ability to design even a simple optimized website in a few hours, get a business license and start hitting the streets in your area. Talk to small business owners and find out which ones don’t have a website. Explain to them why they do need one, what your abilities are, and how much it
will cost.

Don’t lie about your limitations or feel bad about charging an hourly rate for your work. Remember that a website you design will usually be less money than a large firm would charge, and that you probably know far more about web design than that business owner does! It may not hurt to locate a graphic designer who would like to do the artwork for the website, as search engine optimized websites are mostly about text, but look nice with some small business logos that match the “theme” of the businesses’ other advertising.

Copyright 2005 by Alexandra DeBoer. For more information about the author or a career in web design, please visit her website at: www.webdesignfromhome.com (http://www.webdesignfromhome.com).

book@webdesignfromhome.com (mailto:book@webdesignfromhome.com)

First Time Buyer Mortgage –Key to your First Home

2005-06-02T10:53:00.000-07:00

By Aditya

Living in a rented apartment since long. Ever thought of the disadvantages of staying as a tenant. Besides losing your freedom to the whims and fancy of the landlord, your hard earned money is going down the drains. Of course, to nourish the landlord’s finances; such that he is planning to buy a new home.

Ever thought how much have you paid in total. If accumulated, the rent would have been enough to buy you a house. If the idea dawns upon you, then continue reading for more information on the first time home buyers mortgage which can be a key to your first home.

A first time buyer mortgage can be a perfect option for financing your first home. It is specially built for the first timers. The first time buyers are generally new to their careers. They did not have time to build up savings to help them pay for their home.

However, some amount of deposit will be required for getting the mortgage. Some lenders are ready to finance the whole of the house by paying 100% on the mortgage, if the first time buyer is not able to pay the deposit. Nevertheless, they will charge more for their services.

First time buyers are a hot favourite with the mortgage providers. This is because they know that this is their first deal and if treated well the customer would come again and many more times after that.

First time buyers do not require any special treatment. They require a mortgage which allows them to purchase their first house without much of difficulties- both immediate and future. But they seldom get the treatment they desire.

The first problem they face is the lack of knowledge about the rules and regulations related to buying of house. Very few people do actually peek into the legal documents till it is their own home, or if they deal in these. So it is inconsequential to think that they must have known the formalities.

‘Whom to ask’ is the second problem which first time buyers face. Does a particular person have the necessary knowledge to inform them about the legal formalities? If yes, can you believe the person to be tendering unbiased information? He/ she might be an agent of the lender, just aiding the
lender to make his lead.

But knowledge about the legal formalities is a must. One can be trapped into a bad deal in the absence of information. Close friends and relatives might be a source of information. So can bankers and mortgage providers. The key to relevant information is getting information from a number of sources. While you get to know a whole lot of things, you can very easily eliminate superfluous information.

The normal amount of money advanced in this type of mortgage is 3.25 times the salary of a single working member; and 2.25 times the combined salary where both couple is working. Some lenders are ready to offer as much as 5 times the salary. However, it will be advisable to ignore the bait. It could lead you to pay much more than you could have afforded. Besides, there are many more expenses to pay for. There are a whole lot of fees and stamp duty to be paid for, which could cost a fortune.

While there is the temptation to adorn ones home with the best of designs and interiors, all at one go, it would be appropriate to be easy in plans. The limited resources which a common person has, does not warrant a huge expenditure on the house. Even the first time buyer mortgage will have to be paid someday.

Therefore, it is crucial to decide the amount of first time buyer mortgage beforehand. Used aptly, the mortgage can be the key to your first home, and the key to all the enjoyment ensuing out of marriages, births and many more events, which this home will witness.

Aditya has completed his masters in mass communications from Jamia University. If you need UK Personal secured and unsecured loans visit http://www.ukfinanceworld.co.uk

Interest-only Mortgages Have Their Pitfalls

2005-05-29T22:30:00.000-07:00

By Charles Essmeier

Rising home prices, particularly on the East and West coasts have put the costs of home ownership seemingly beyond the reach of many. And yet, home ownership is up nationwide, and the percentage of Americans who own their homes is the highest it has ever been. How is this possible?

There are more different types of mortgages available to home buyers than ever before, and one that is growing in popularity is the interest-only mortgage. With an interest-only mortgage, the buyer pays no principal for the first few years of payments. The period of time varies, and is typically anywhere from one to five years. At that time, the principal is added to the mortgage payments and the amount of the payment increases. By keeping the payments lower for the first few years of the mortgage, the interest-only mortgage allows buyers to obtain a more expensive home than they otherwise might. The buyer’s income will probably increase over time, making it possible to afford the higher payments that will come when the principal is finally added to the payments.

The downside to an interest-only mortgage is that no equity accrues in the home if the buyer isn’t paying any principal. For many Americans, the equity in their home is their single largest financial asset, so taking out a mortgage that doesn’t build equity would seem to be a bad idea. Equity has long been used as a last resort source of funding for emergencies. And yet, with the price of homes rising so quickly these days, many buyers don’t seem to care. Equity can be built two ways – either through paying down the principal or by an increase in the market value of the home. If the value of your home increases, so does your equity, even if you are only paying interest on the mortgage. This is great, so long as home prices continue to increase. But what if prices fall?

There are potential problems with interest-only financing. Interest-only mortgages have variable interest rates. If interest rates rise, mortgage payments will increase. If payments increase beyond the level of affordability, homeowners could be forced to sell their homes. This could lead to a glut in the housing market, causing prices to fall. Owners wishing to sell could find that they owe more money than their home is worth and that they have no equity.

The interest-only mortgage is a useful tool to help people buy a home they otherwise might not be able to afford. Prospective home buyers should consider whether taking out such a mortgage is a good idea, or whether they might be better off buying a less expensive home.

©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation information and HomeEquityHelp.net, a site devoted to information on home equity loans.