Affordability Returns to Chicago Home Mortgages December 16, 2009
Posted by Pat in : my thoughts on stuff , trackbackHome affordability is a function of two things, home price and mortgage rates. When home prices were at their highs a few years ago, that was one factor pushing mortgage payments higher. Rates were just over 6% in the beginning of 2007. That compares to 5% today. The payments are $1199 and $1073 at 6% and 5% for a $200,000 home loan. That’s a pretty signifcant difference. That’s a 10% drop in mortgage payment. You can take a look at current Chicago mortgage rates.
Getting a Chicago home loan these days requires a very strong credit profile, sufficient down payment, and income strong enough to keep the debt-to-income ratio below 45%. Still, there are plenty of loan programs available and it is a great time to buy. Here is a good summary of the recent changes to home loan approval guidelines.
For all the talk about home prices, it is actually the mortgage that has the bigger impact on home payment. In any given year or set of years, it’s almost a given that mortgage rates will move 1-2%. That equates to 10-25% variances on housing payments.
Find an expert for your Chicago Home Mortgage.
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