North American Mortgage

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Float on the Bubble – Take out a North American Mortgage in the Hot Spots

Are you prepared to relocate to make the most money you can on your home? If you have benefited from a huge increase in equity where you are currently located but are hungry for more, there are some hot spots in North America where you could make loads! Sell up and move, take out a North American mortgage and reap the equity benefits.

Where are these hot spots?

According to research conducted by Fiserv CFW, the areas that have seen the greatest price increases in the last five years are as follows:

1. Los Angeles , in particular the zip code 90802 Long beach California where prices have increased by 142%.
2. Boston , in particular the zip code 02124 near Dorchester where prices have increased by 124%

These dramatic increases are extremely tempting but you should research your markets thoroughly before putting your North American mortgage where your mouth is. Don't only look at past performance. Be prepared to take the advice of researchers who predict future price increases in states and zip codes. They have a wealth of knowledge that enables them to predict up and coming hot spots that may be entirely different to the ones noted above.

Of course, there is a huge risk in moving to a new state or new zip code just to benefit from the amazing house price increases. You would have to find a new job, new schools (if you have children) and it could change your lifestyle completely. You may not even like it when you get there!

And who's to say that prices will continue to increase at the rate that they have? If you take out a North American mortgage for a far more expensive property you could put any financial gain you have made in jeopardy. If the mortgage interest rate increases and cannot afford the mortgage repayments, or prices decrease in the area that you thought was a safe investment for the future, you could lose any equity that you built up previously.

On the upside, if you manage to take out a North American mortgage in a zip code or area that rockets in the next five years you will have made a mint. But it's a huge risk and if it's not a risk you are prepared to take then stay put.