Credit Crunch Affecting Home Prices
Home buyers with the very best credit are beginning to have a more difficult time getting mortgages, raising concerns that the real estate market value could fall much further, sending home values spiraling lower and toppling the country’s economy into recession. The drop in home values could cost the typical homeowner as much as $200,000 in lost wealth for some high-end residences. While most of the attention during the housing slump has been directed at subprime mortgages given to those with weak credit histories in high-cost regions have a different problem. Prime borrowers with excellent credit who’ve used subprime-style gimmicks in combination with jumbo loans to overpay for their homes are also effected.
search for : Home buyers, drop in home values, subprime mortgage
