Taos Housing Slump: The good news
I just read a really good article about winners and losers in the housing slump. The information comes from a book by David Crook (nice name, huh) entitled "Make the most of Your Biggest Asset in any Market". Mr Crook explains that if you bought your home in the 90's or earlier you should have lots of equity in your home and should accelerate your mortgage payments. Every dollar you pay on your mortgage balance returns at least the interest you pay to borrow it. In other words, pay off your mortgage as fast as you can. He also says that if you are still working and have paid off your mortgage you should be packing money away in order to buy another property. If you can't make a great deal on the new property-30% or more off the bubble-era value- you shouldn't buy. Interesting advice, if you are in a good equity situation.