In the market to purchase a home? Well, thanks to the Obama administration, home buying is very affordable. The plan is suppose to promote loan modifications by bringing debt-to-gross income ratios down to 31 percent. In short, that would allow homeowners to only spend 31 percent of their income on the mortgage, including taxes. With such low payment levels – compared to 50 percent payments as the recent norm of banks – people who get their loans modified under the new plan will be far more likely to remain in their home.
According to Federal Reserve Chairman (Ben Bernanke), "the rate of decline in economic activity is slowing. Home sales, home building and consumer spending is up and a leveling out of economic activity is the first step toward recovery." However, he did say a stabilization of the financial and credit markets is vital.
Illinois existing home sales: Increased 1.0 percent but are 14.0 percent lower than a year ago. The median price in the Midwest was $131,000, which is 7.8 percent below a year ago. Builder's have stopped building, but people still need a place to live and the government is pitching in with an $8500 tax credit to first-time home buyer's.
For more details about housing in the Chicago area, contact me direct:
312 733-5329
No comments:
Post a Comment