Zillow: Negative equity continues to decline across US
Posted on Tuesday, May 20, 2014 at 10:54:19 AM
Across the country, many homeowners struggle with their residential financing payments. However, with a sound budget, better employment options and an improved economy, this unfortunate circumstance can be avoided.
According to Zillow, the national negative equity rate declined to 18.8 percent during the first three months of 2014, with slightly fewer than 10 million homeowners owing more on their mortgage than their properties are worth. While this trend has improved, negative equity can be a serious problem for a lot of people.
"It's hard to overstate just how much of a drag on the housing market negative equity really is, especially at the lower end of the market, which represents those homes typically most affordable for first-time buyers," explained Dr. Stan Humphries, chief economist at Zillow. "Negative equity constrains inventory, which helps drive home values higher, which in turn makes those homes that are available that much less affordable."
In order to stay above water, homeowners have several options when it comes to affordable residential financing. For starters, it could help to pay a little bit more each month, to offset interest rates, according to Bankrate. Even a small amount can add up over time, so all borrowers should take a moment to calculate monthly payments and tweak the numbers to find opportunities to save.