The media loves to send panic through the hearts of home owners. Almost every day there is a story about home values and foreclosed properties. The amount of bad news that home owners have to digest can lead to poor financial choices. There are thousands of home owners who are now contemplating leaving their homes and walking away simply because their equity is gone, even though they can still afford the house payment. This cycle needs to end fast to help balance out the real estate market. The amount of equity you have in your home can adjust up or down and really should only impact you financially when you are trying to sell or refinance. There is certainly going to be a period of time when real estate values climb and home value and equity is restored. Walking away from homes can have a devastating effect on your credit and may hurt your opportunity at building wealth in the long run. Your homes equity is not something that should be tracked like a stock component and judged weekly or monthly. Most home owners are in their homes for periods of five years or longer, which should be plenty of time for some normalcy to return to the real estate markets.

6-7-2008 ©LowRateMortgage.com

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