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Cash Confident

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In recognition of June as Homeownership Month, the National Foundation for Credit Counseling released the results of a recent poll revealing that close to one in five respondents do not believe that taking on a mortgage is worth the risk.  This attitude is consistent with the U.S. Census Bureau's current report highlighting the declining rate of homeownership.  The present rate of 64.8 percent representing the first quarter 2014 is the lowest homeownership rate in almost 19 years. 
 
"The housing crisis, recession and continued economic instability appear to have shaken the confidence of many Americans, particularly when it comes to big-ticket items such as a house" said Gail Cunningham, spokesperson for the NFCC.  "However, the unwillingness to take on a mortgage loan may be a smart decision for some, as many borrowers have learned the hard way that homeownership does not come with a guarantee of continually increasing equity."
Although the benefits of owning a home are many, until a person is fully prepared to assume responsibilities such as a mortgage payment, home and lawn maintenance, improvements, and taxes and insurance, renting may be right for them. Homeownership is about much more than buying a home.  Renting until they are in a position to buy can help a person avoid a costly mistake, including the negative ramifications of foreclosure.  

Renting can gives a person time to prepare for homeownership and mobility. Renters also spend less money up front, avoid purchases on appliances, home repairs and more. 

Cunningham noted that it is critical to remember that buying a home represents a large financial obligation extending over a long period of time and is usually a person's largest investment.  Consumers should consider homeownership only after careful deliberation and when the timing is right for their unique situation.  
If buying a home is the ultimate goal, take advantage of an NFCC member agency homebuyer workshop. To find out more information, or to have personalized answers to your homebuying questions, reach out to an NFCC certified housing professional by calling (800) 388-2227.  To find an agency online go to www.NFCC.org