1. Loans are getting pricier
This year, those premiums could increase again. The Federal Housing Administration Fiscal Solvency Act of 2012 gave the FHA right to raise premiums to as high as 2.05% yearly to build and maintain its reserves, which are at record low level. If that happens, the increase would take another $133 onto the monthly payout for a $200,000 loan.
2. A new rule shady mortgage lenders protection from the buyers.
The new rules, spurred by 2010's Dodd-Frank financial-reform law, require that borrowers financial information service status, income, assets and debt are full and verified by lenders, thereby eliminating no- or low-doc loans. This information, including debt-to-income ratio, must be used to show that the borrower has the ability to pay back a loan.
3. Homes are more expensive
An improving financial system and low interest rates have boosted buyer demand in most markets, decreasing supply and raising prices. The national median home price increased 10.1% in November to $180,580 from the same period one year earlier, according to the National Association of Realtors.
4. Home Equity Loans has a turn
Low credit rates may have stolen the full headlines last year, but rates on home equity loans have been falling, too, making those long-overdue home remodels better-looking for people who have been in their house for some time. That average ran as high as 8.5% during the economic crisis in 2009.
5. Expected of it by the new construction industry
New-home prices though are moving up quicker than prices for accessible homes. The equally price of a new home in the U.S. rose to $246,200 in November, a 15% increase from the earlier year. Better supply in the months ahead, however, could ease the pace of future price increase.
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