Super Fitness Health BlogAffordability Returns to Chicago Home Mortgages
The payment on a Chicago home mortgage is so much lower today than just a few years ago. In 2007, we started the year just over 6%. That’s about $1200/month on a $200,000 loan. We’re currently at 5% which is about $1,073/month. We almost saw 7% rates in 2007 and that would push payments up about 25% from today’s levels. You can take a look at current Chicago mortgage rates.
Approvals aren’t getting much easier, but the current loan requirements aren’t too bad. You’ll need no less than a 620 FICO score and today’s A+ borrower is a 740 FICO. There are a lot of new rules to make sure that people are living at at a safe debt-to-income, but it’s become less in vogue to be living outside one’s means anyway. 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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