Utah, located in the middle of the Rocky Mountains, is a state that offers a lot of opportunities to progress and raised children in a well and healthy environment. For most of the population in the USA, Utah is a state centered in a family culture. Utah families are usually of large size, which becomes one of the largest reasons to buy large houses. Years ago, people in Utah were very competitive about having the best, biggest, and most beautiful home, but now, because of the economy that pattern has changed.
The current economy has made the real estate business slow down in the country. Annual mortgage rates have gone down to its lowest. Currently, Utah mortgage ranges between 4 – 5% and the most-selling homes do not go beyond $ 300,000.00. The times for competitiveness for the best and large house are over. Because of this situation, banks have taken some measurements such as short sales, loan modifications and fore closures.
Short sales occurs when the mortgage of a house is greater than what the home is worth. Banks take houses and lower their price, forgiving part of the previous debt. For banks this is better and less expensive than doing a foreclosure where houses are taken completely from the borrower to be resold. Thousand of houses are in the short sale category in Utah, causing many investors to buy homes at a good price with a low mortgage rate.
The low rate in home mortgage in Utah has also caused loan modifications. In this type of modification, banks are willing to help lenders to keep their homes. Utah mortgage original rates are lowered to about 2% for 5 years. The sixth year, the rate goes up for about 1% same with the seventh year. After the eighth year, the mortgage rate is kept at a range not greater than 5%. This loan modification is helping those who bought houses during the time of a high mortgage rate.
Competitive buyers used to own more than one house. There has been a decrease in how people make their home purchases. Utah Buyers are not buying very expensive homes.