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There has never been a better time to buy than now…

October 4th, 2010 · No Comments

There has never seen a better time to buy a home, with low interest rates and affordability being one key component. Nike Free 5.0 Homme Adidas Zx 700 Homme cheap ffxiv gold

When people decide to buy a home, the monthly payment is a crucial factor. air max pas cher Nike Air Huarache Femme Rose Nike Free Run 3.0 homme Nike Air Huarache Femme Affordability is a function of home price, interest rate and down payment. Nike Roshe femme Nike Air Max Tavas femme Adidas Zx Flux Homme Bleu Adidas Powerlift 2 Homme Nike Air Max 1 Femme Conservative underwriting for mortgage payments state that borrowers should allocate no more than approximately 30% of their income for a house payment. Adidas Yeezy 550 Femme nike kwazi enfants Nike Air Max 90 Femme Noir Nike Air Max 90 Homme Looked at from another perspective, this means if your monthly income is $4,000, you should keep your mortgage payment under $1,200 a month. adidas gazelle homme noir Nike Free 5.0 enfants Canada Goose Expedition Parka You also want to keep in mind that your total monthly debt payments should not exceed 41% of your income. Nike Air Max 2017 femme Nike Roshe Run enfants New Balance 1300 femme Nike Free Rn Flyknit Homme nike air force 1 low uomo adidas nmd r1 homme Nike Air Max R4 Homme Nike Roshe Run Femme While exceptions will sometimes allow you to exceed that number, you don’t want to be stressed out, feel like you’re married to your home or miss out on opportunities for investments in a 401K or retirement account. Adidas Zx Flux Femme Fleur Nike Air Max 95 Homme That said, many experts have said that when median home prices exceed median incomes by three times in a market, then that market could be viewed as a high cost market. Nike Scarpe Donna Nike Roshe Run enfants As an example, median household income in the U.S. Adidas Superstar Femme Noire adidas stan smith enfants Adidas Zx 700 Femme Bleu is approximately $51,233 and the median home price in the U.S., according to the most recent statistics released from the National Association of Realtors, is $173,100. Nike Air Huarache femme Adidas Zx 500 Femme Rose nike air zoom pegasus 34 femme Nike Flyknit Lunar 1 femme Based on this one statistic, it could be reasoned that housing overall may be somewhat unaffordable. New Balance 530 homme New Balance 996 femme Nike Flyknit Lunar femme Jordan 1 enfants However, you also have to take into consideration what the monthly payment would be based on existing interest rates. Nike Free 5.0 Homme Nike Air Max 2009 Femme Adidas Ultra Boost Femme Assuming a homebuyer puts 10% down on a median home price, the monthly payment, assuming the cost of property taxes and insurance at 1% and .5% respectively, would be 28.9% of income, well within reason. Adidas Zx 700 Homme nike air max 1 femme rose Parajumpers Windbreaker Mary Todd Another consideration should be the cost of renting a home when compared to a house payment for the same type of home. New Balance 420 homme buy ffxiv gil Air Jordan 30 Homme When the cost to rent is similar to the monthly cost to own or more, housing may well be affordable for that particular market. Adidas Zx Flux Homme Noir Nike Air Max 98 Homme Nike Roshe Run Femme Porté I went online to look at what types of homes were on Craigslist for $1,000 a month to rent. Asics Homme Adidas Zx 700 Femme Leopard nike air jordan 13 donna I found one home that offered 1,300 square feet, no garage and no pool where a home with a similar mortgage payment offered nearly 2,000 square feet of living area, a pool and two car garage in a nicer area.” This is certainly one example where the cost to own is less than the cost to rent. Air Jordan Homme Adidas Yeezy 750 Boost Homme Asics Gel Kayano Evo Homme Adidas Zx Flux Homme Bleu One other factor is that when the tax deductible portion of the payment is taken into consideration, the after tax mortgage payment was approximately 15% less, making the cost to own even more affordable when compared to renting. Adidas Zx 700 Femme Noir New Balance 678 femme Adidas NMD Homme Adidas Superstar Femme Nike Air Max 2014 Femme Credit Reports: When One May Not Be Enough Effective June 1, Fannie Mae has instructed lenders that they should adopt a new policy that could involve a second review of an applicant’s credit report just prior to closing. Nike Roshe Run Femme Porté Nike Roshe Run Style Homme When reviewing defaulted loan files, they have determined that the credit profile of a borrower may have changed from the time of the initial review of the credit report and at the time of closing. Nike Air Max 1 premium femme New Balance 999 femme The potential impact to a borrower who has utilized credit to make significant purchases after the initial credit report could include a delay in closing, increase of closing costs and/or interest rate or a decreased loan amount. Canada Goose Gilet Femme Nike Tanjun enfants nike free 5.0 uomo New Balance 997.5 homme In the worst case scenario, it could even result in a loan being denied, even after an original approval had been granted. Adidas Zx Flux Homme Grise Asics Gel Lyte 3 Femme Rose In order to eliminate any possibility of potential problems before closing, anyone in the application process should use credit sparingly and make sure they adhere to the tips provided below by credit expert, Linda Ferrari of Credit Resource Corp. New Balance 420 homme nike air zoom pegasus 33 homme nike air jordan 4 donna asics tiger uomo For more tips on what you should not do regarding credit during the mortgage application process, contact the professionals, Tim and Sandy Williams, who supplied you with this month’s issue of YOU Magazine. New Balance 247 femme nike cortez bambini Asics Gel Lyte 3 Femme Grise Top 5 Tips for Preserving Your Credit and Mortgage Application

  1. Don’t do anything that causes a red flag to be raised by the scoring system.
  2. Don’t apply for new credit of any kind.
  3. Don’t pay off collections or charge offs.
  4. Don’t max out or over charge on your credit accounts.
  5. Don’t consolidate your debt onto one or two credit cards.

This list is not comprehensive but does give you a peek into situations that could create issues and could also be contrary to some ideas you have read previously. Adidas Yeezy 350 Homme Noir Great Opportunities When Offered Should Be Acted Upon The one key component in home affordability that is at greatest risk today is interest rates. Nike Tanjun enfants Canada Goose Constable Parka Adidas Ultra Boost Homme nike dynamo free Many experts have stated that interest rates should be higher than their current levels, in some cases a lot higher. Air Jordan 30 Homme One point to remember is that every 1% increase in interest rates decreases the buying power of an individual by 10% in home price. nike dynamo free ps Nike Femme Air Jordan 7 bambini adidas neo 10k homme This means that if you qualify for a home priced at $200,000 today and interest rates increase 1%, the amount you could qualify for would be reduced to approximately $180,000 to maintain the same payment. Air Jordan 3 bambini nike internationalist uomo If you could benefit from moving to a new home, don’t let this opportunity pass you by. Nike Air Presto Homme Adidas Ultra Boost Homme Adidas Zx 700 Femme Leopard Home prices are increasing in most markets and combined with the risk of increasing interest rates, your time to get the home you want could pass you by.

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