Joint Base Charleston Real Estate

Charleston AFB - Potential Mortgage Changes Could Increase the Cost of Home Buying

April 22nd, 2011 7:08 AM by Jodie Ford

We understand that buying a home is a major decision….but we want you to understand the financial aspects of deciding to buy or wait….

Interest Rates Continue to Rise
Just in the last six months, interest rates in the Charleston AFB area have increased almost 3/4 of a point, and many industry experts expect this trend to continue throughout the year. If interest rates rise – the COST of buying a home goes up. So you may be spending more if you decide to wait.

Is the 30-Year Mortgage a Thing of the Past?
Many experts believe if Fannie Mae and Freddie Mac’s roles are eliminated, or even limited, it may be the end to the 30-year mortgage.

It May Become Harder to Qualify for a Mortgage
Here are proposed changes:

  • Certain mortgage types would be eliminated
  • You would need to put a minimum of 20% down
  • You would need a minimum 690 FICO score
  • The ratios of income to both the mortgage payment and overall debt would become much more conservative (28% and 36%)

Loans would still be available to purchasers who don’t qualify under the new rules, but they will most likely have higher rates and cost more.

Rents Are Expected to Increase
The supply of Charleston AFB rentals is decreasing, while demand continues to increase. That will lead to an increase in rental costs throughout the year.

Bottom Line
If you are still undecided as to when to buy a home, you need to consider the potential mortgage changes in your decision. If you delay, you may end up spending more.

 

*Information provided by the KCM Group

About Military Homes of Charleston: Military Homes of Charleston is part of the Exit Realty Charleston Group and is a full-service real estate team based in Charleston, SC. We understand the appeal of living in Charleston and the challenges that come with moving to a new neighborhood or state. So whether you’re looking to buy a dream property or sell one, we can help.

Charleston AFB Real Estate, Charleston AFB Real Estate For Sale, Charleston AFB SC, Joint Base Charleston, Joint Base Charleston Real Estate

Posted in:General
Posted by Jodie Ford on April 22nd, 2011 7:08 AM

Archives:

My Favorite Blogs:

Sites That Link to This Blog:


English French German Portuguese Spanish