For generations, owning a home has been a key part of the American dream. However, this dream comes with risks for both borrowers and lenders that persist through market ups and downs. Borrowers must navigate property market fluctuations, the threat of negative equity, lack of liquidity, and the ongoing financial responsibilities of taxes, insurance, and maintenance. On the other hand, lenders face the potential of borrower defaults, interest rate fluctuations, prepayment risks, and the impact of economic downturns.
Despite these challenges, the desire for homeownership remains strong in the United States. It is important for both borrowers and lenders to understand and mitigate these risks in order to achieve the goal of owning a home while maintaining financial stability.
