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This is Chris Redgrave for Zions Bank Speaking on Business.
Utah is ranked high in many areas, and one of them happens to be home ownership. Our 2010 recorded rate of 72.5 percent remains well about the national average of just under 70 percent. One of the reasons for this, according to the Utah Association of Realtors, is family mobility.
Because Utah families tend to be larger than the national average, they often move into bigger homes, as their families grow. This prolongs the time it takes to pay down the mortgage. It also shows that Utah is likely to buck the trend of long-term rental.
From a financial standpoint owning a home makes sense. When you choose a house you can afford and paying your mortgage, you are building equity in a place of your own. You can also get tax advantages, retirement savings and are more likely to get a second home after the first.
Even knowing the advantages of home ownership, especially in the current economic climate, you can still experience mortgage challenges. That's why programs like HAMP and HARP are helpful.
Nationally speaking, 910,000 people are taking advantage of the government programs that are in place to help out American homeowners who need it. HAMP, which stands for Home Affordability Modification Program, is set up to assist folks who have a current income that can't support their house payment. It reduces the interest rate to 2 percent for the next five years.
The other government program is called HARP, or Home Affordability Refinance Plan. It allows the homeowner to refinance at the current rate, which is now below 4 percent. You can qualify as long as you have the ability to pay when the values come back.
A local resource to help you navigate the complex real estate world and find out what's available to help keep you in your home is the Homeowners Café on Union Park Avenue in Midvale. This free service can answer any questions you might have about buying a home or staying in the one you already have.
For Zions Bank, I'm Chris Redgrave, speaking on business.
Homeowner's Cafe 7634 Union Park Ave. Midvale, UT 801-316-1612 www.thehomeownerscafe.com
