Buyers Are Wary of Mortgage Debt

Five or six years ago, it was common for a buyer to ask me how they could buy a home with no down payment.

Leverage was king, getting a loan was easy, and buyers were eager to buy a home, regardless of the consequences of poorly-structured financing.

Option ARMs, 80/20 loans, and liar loans were the order of the day.

Fast forward to today and I can’t remember the last time a buyer asked me how to buy a home with nothing down.

Today’s home buyers are now embracing the idea that equity is actually a good thing.

Many of my buyer clients make significant down payments when they purchase and investors often pay cash.

I also have many clients who add extra principal to their monthly payments to shorten the term of their mortgage and build equity faster.

And, with today’s low interest rates, many of my clients are opting for 15-year mortgages vs. 30-year mortgages.

It’s nice to see some sanity return to the housing market.


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