Wells
Fargo
Mortgage
Rates
FHA
Mortgage
Rates
State
Farm
Homeowners
Real
Estate
Notes
Home
Inspection
Tools
Current
Prime
Interest
Rate
Home Ownership Preparation :: Free Mortgage Advice
Free Mortgage Advice:
When Taking Free (and Often Unsolicited) Mortgage Advice Isn't Worth It
Custom Search
Free mortgage advice seems like a dream come true, but it can often be a major headache – particularly when it’s coming from a parent.
All parent love to offer advice to their children on buying a house. But is it worth taking?
Many parents find it hard to believe that their children can handle a checkbook, let alone buy a house on their own.
They can’t help telling us how to handle real estate agents, where to get a mortgage and what to say to our lawyers.
More Kids Doing it On Their Own
And yet, more young people are casting off the free mortgage advice offered by their parents and are now relying less and less on mummy and daddy.
Figures from the Council of Mortgage Lenders show that buyers are now older, and probably wiser, when they first step on the housing market ladder.
Burnt by a world of repossessions and negative equity during the housing slump in the late 1980s and early 1990s, the percentage of first-time buyers under the age of 25 fell from a peak of about 32 percent in the mid-1980s to 23 percent in 1996.
It jumped back up to about 28% during the housing boom in the early part of the decade, but plummeted once young homeowners were shut out by high prices.
But, now that prices are falling again and rates are still low, more young people are getting into the real estate game. The question is, are they bringing their parent’s advice (and follies) with them?
Free Parental Mortgage Advice Can Help
But parents can help - especially with the deposit and with providing independent financial advice.
That independent free mortgage advice can come in handy when a commission-driven salesperson is trying to sell you a mortgage you don’t need.
Not all children accept advice with the grace their parents might desire. One can almost hear the exchange: "But Dad, Brooklyn is different now. Lots of my friends live there." "Yes, well, you know that's the one place we don't want you to live. What about Connecticut?"
Parents most obviously can help their offspring when they are at university.
Buying a house for their own son or daughter, then renting out the remaining rooms to other students not only gives their offspring a secure home, but makes sound financial sense.
Why? Because it can deliver income and help make the mortgage payments.
More Parents and First-Time Buyers Cashing in on University Homes
When it comes to free mortgage advice, many parents and their college-aged kids are cashing in on investment properties close to universities.
Both the kids and the parents are building equity in a home, while passing the mortgage payments on to other student tenants.
See also:
All Articles for Home Ownership Preparation
Custom Search
Only $9.95!!
Learn great tips about how to safely obtain a home mortgage with
Your First Mortgage
Order Online
24 Hours a Day
7 Days a Week
365 Days a Year!
Copyright 2008
Home-Ownership-Preparation.com :: Free Mortgage Advice