If I don't have a mortgage, how will the mortgage crisis effect me?

Answer by  CarolynOsborne (2804)

With a problem in the banking industry comes problems in other areas. For example, if people can't get mortgages, builders can't build homes, and people in the construction industry and the construction supply industries get laid off. This increases unemployment in general, which means if you need a job, there will be more competition.

Answer by  captaincreditcrunch (15)

Lenders are realizing they need to get paid back what they loan. Lending standards will tighten until loans are profitable, which means asset prices will have to return to what incomes can sustainably afford to pay. You won't have access to credit unless you can repay the loan!

Answer by  elsewhen (627)

You might not be affected directly, but our entire society will be affected by the crisis. More and more people are foreclosing, thereby increasing the number of houses on the market, thereby lowering their prices. Lower home prices reduces the amount of wealth that can flow into the economy.

Answer by  shego (255)

If you don't have a mortgage you may have nothing to worry about. However, if you rent a home from an owner who is still paying a mortgage on your rented dwelling, you may see an increase in your rent.

Answer by  mrscr (6)

The mortgage crisis causes people to quit buying in other areas. causing companies to cut production and more jobs are lost adding to the mortgage crisis and starting the cycle over while only affecting more and more people. If we don't help the average person we are SOL.