When asked to picture the American dream, many individuals will describe a white picket fence surrounding a beautiful home, with a front yard and a dog running around outside. However, some are beginning to question the reality of that dream.
According to a recent survey by COUNTRY Financial Security Index, just 45 percent of Americans said that homeownership is attainable for middle class families. However, 88 percent still think that it's important for citizens to own property.
"Home ownership is important for Americans, but the market's slow recovery might be causing them to doubt its value. However, Americans are confident about future home values," Joe Buhrmann, manager of financial security support at COUNTRY Financial, said in the press release.
Buhrmann added that with credit standards tightening, it's critical for individuals to make monthly payments on time. That process can be made easier with the use of an amortization schedule for loans. Additionally, when lenders implement loan management software, borrowers can rest assured that the designed payment plan will be suited to their financial needs.
Even with less optimism being seen by some Americans, the Mortgage Banker's Association (MBA) released data this week showing that mortgage applications surged last week – mainly in areas affected by Hurricane Sandy. Applications doubled in New Jersey while Connecticut and New York increased more than 60 percent.
As reported by Reuters, the MBA's seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, rose 12.6 percent in the week ending November 9.
With multiple factors contributing to whether individuals will shop for houses – and possibly determine their payment options – lenders should use mortgage loan software to guarantee a repayment plan is created that will benefit both parties.