Housing Affordability

Recent record low mortgage rates and a big drop in home prices has made housing more affordable these days. In fact, housing affordability has just hit new highs according to the National Association of Realtors.

For every .50 percent drop in mortgage prices the monthly cost of owning a home decreases by $31.00 per $100,000 borrowed. On a $500,000 mortgage, the savings would be $445.00 per month. Another benefit to lower rates is the home buyer can qualify for a more expensive home and a larger mortgage.

In addition to the drop in home prices and mortgage rates, the government is also making housing more affordable by giving first time home buyers a tax credit of $8,000 if you buy a home between January 1, 2009 and December 1, 2009.

Loan Term
Show Advertiser Disclosure
Lender
APR / Rate
Fees / Points
Payment
Home Simply
NMLS #2473786
4.914%
15-Year Fixed
4.750%
$4,379
Includes 0.821 points for $3,284
Lender Fees: $1,095
$3,112 /mo
Next >
Future First Lending
NMLS #2126430
4.941%
15-Year Fixed
4.750%
$5,195
Includes 0.975 points for $3,900
Lender Fees: $1,295
$3,112 /mo
Next >
iheartloan
NMLS #2562839
4.942%
15-Year Fixed
4.750%
$5,125
Includes 1.000 points for $4,000
Lender Fees: $1,125
$3,112 /mo
Next >
Filo Mortgage, L.L.C.
NMLS #1928741
4.995%
15-Year Fixed
4.875%
$3,172
Includes 0.793 points for $3,172
Lender Fees: $0
$3,138 /mo
Next >
LifeStone Mortgage
NMLS #1085173
5.037%
15-Year Fixed
4.875%
$4,370
Includes 0.750 points for $3,000
Lender Fees: $1,370
$3,138 /mo
Next >
Statewide Funding
NMLS #1105497
License: 603L227
5.087%
15-Year Fixed
4.875%
$5,625
Includes 1.000 points for $4,000
Lender Fees: $1,625
$3,138 /mo
Next >
Tomo Mortgage, LLC.
NMLS #2059741
5.094%
15-Year Fixed
4.990%
$2,744
Includes 0.686 points for $2,744
Lender Fees: $0
$3,162 /mo
Next >
Bison State Bank
NMLS #757416
5.129%
15-Year Fixed
4.990%
$3,684
Includes 0.921 points for $3,684
Lender Fees: $0
$3,162 /mo
Next >
Different Mortgage
NMLS #324599
License: 324599
5.189%
15-Year Fixed
5.000%
$5,070
Includes 1.000 points for $4,000
Lender Fees: $1,070
$3,164 /mo
Next >
Blue Sky Financial, LLC
NMLS #1954591
License: 60DBO-113383
5.292%
15-Year Fixed
5.125%
$4,455
Includes 0.837 points for $3,348
Lender Fees: $1,107
$3,190 /mo
Next >
Zoom Loans
NMLS #1312186
5.365%
15-Year Fixed
5.250%
$3,000
Includes 0.750 points for $3,000
Lender Fees: $0
$3,216 /mo
Next >
Future First Lending
NMLS #2126430
5.365%
5-Year ARM
5.250%
$5,259
Includes 0.991 points for $3,964
Lender Fees: $1,295
$2,209 /mo
Next >
New American Funding, LLC.
NMLS #6606
5.400%
15-Year Fixed
5.250%
$3,928
Includes 0.982 points for $3,928
Lender Fees: $0
$3,216 /mo
Next >
Home Simply
NMLS #2473786
5.463%
5-Year ARM
5.375%
$3,947
Includes 0.713 points for $2,852
Lender Fees: $1,095
$2,240 /mo
Next >
Mutual of Omaha Mortgage, Inc.
NMLS #1025894
5.502%
15-Year Fixed
5.375%
$3,328
Includes 0.657 points for $2,628
Lender Fees: $700
$3,242 /mo
Next >
Filo Mortgage, L.L.C.
NMLS #1928741
5.840%
30-Year Fixed
5.750%
$3,928
Includes 0.982 points for $3,928
Lender Fees: $0
$2,335 /mo
Next >
iheartloan
NMLS #2562839
5.847%
5-Year ARM
5.750%
$4,213
Includes 0.772 points for $3,088
Lender Fees: $1,125
$2,335 /mo
Next >
LifeStone Mortgage
NMLS #1085173
5.862%
5-Year ARM
5.750%
$4,958
Includes 0.897 points for $3,588
Lender Fees: $1,370
$2,335 /mo
Next >
Home Simply
NMLS #2473786
5.944%
30-Year Fixed
5.875%
$3,007
Includes 0.478 points for $1,912
Lender Fees: $1,095
$2,367 /mo
Next >
Future First Lending
NMLS #2126430
5.946%
30-Year Fixed
5.875%
$3,195
Includes 0.475 points for $1,900
Lender Fees: $1,295
$2,367 /mo
Next >
iheartloan
NMLS #2562839
5.947%
30-Year Fixed
5.875%
$3,125
Includes 0.500 points for $2,000
Lender Fees: $1,125
$2,367 /mo
Next >
Zoom Loans
NMLS #1312186
5.958%
5-Year ARM
5.875%
$3,596
Includes 0.899 points for $3,596
Lender Fees: $0
$2,367 /mo
Next >
Tomo Mortgage, LLC.
NMLS #2059741
5.960%
30-Year Fixed
5.875%
$3,696
Includes 0.924 points for $3,696
Lender Fees: $0
$2,367 /mo
Next >
LifeStone Mortgage
NMLS #1085173
5.963%
30-Year Fixed
5.875%
$3,870
Includes 0.625 points for $2,500
Lender Fees: $1,370
$2,367 /mo
Next >
Bison State Bank
NMLS #757416
5.966%
30-Year Fixed
5.875%
$3,916
Includes 0.979 points for $3,916
Lender Fees: $0
$2,367 /mo
Next >
Different Mortgage
NMLS #324599
License: 324599
5.990%
30-Year Fixed
5.875%
$5,070
Includes 1.000 points for $4,000
Lender Fees: $1,070
$2,367 /mo
Next >
Statewide Funding
NMLS #1105497
License: 603L227
5.993%
30-Year Fixed
5.875%
$5,125
Includes 0.875 points for $3,500
Lender Fees: $1,625
$2,367 /mo
Next >
Blue Sky Financial, LLC
NMLS #1954591
License: 60DBO-113383
6.087%
5-Year ARM
5.990%
$4,219
Includes 0.778 points for $3,112
Lender Fees: $1,107
$2,396 /mo
Next >
DECO Mortgage
NMLS #2561451
6.088%
30-Year Fixed
5.999%
$3,830
Includes 0.770 points for $3,080
Lender Fees: $750
$2,398 /mo
Next >
Different Mortgage
NMLS #324599
License: 324599
6.097%
5-Year ARM
5.990%
$4,682
Includes 0.903 points for $3,612
Lender Fees: $1,070
$2,396 /mo
Next >
Blue Sky Financial, LLC
NMLS #1954591
License: 60DBO-113383
6.097%
30-Year Fixed
5.990%
$4,655
Includes 0.887 points for $3,548
Lender Fees: $1,107
$2,396 /mo
Next >
Statewide Funding
NMLS #1105497
License: 603L227
6.099%
5-Year ARM
5.990%
$4,682
Includes 0.778 points for $3,112
Lender Fees: $1,570
$2,396 /mo
Next >
Zoom Loans
NMLS #1312186
6.207%
30-Year Fixed
6.125%
$3,500
Includes 0.875 points for $3,500
Lender Fees: $0
$2,431 /mo
Next >
Mutual of Omaha Mortgage, Inc.
NMLS #1025894
6.212%
30-Year Fixed
6.125%
$3,716
Includes 0.754 points for $3,016
Lender Fees: $700
$2,431 /mo
Next >
HSBC Bank USA, N.A.
NMLS #399799
6.214%
30-Year Fixed
6.125%
$3,943
Includes 0.654 points for $2,616
Lender Fees: $1,327
$2,431 /mo
Next >
New American Funding, LLC.
NMLS #6606
6.329%
30-Year Fixed
6.240%
$3,792
Includes 0.948 points for $3,792
Lender Fees: $0
$2,461 /mo
Next >
Rate data provided by RateUpdate.com. Displayed by ICB, a division of Mortgage Research Center, NMLS #1907, Equal Housing Opportunity. Payments do not include taxes and insurance premiums. Actual payments will be greater with taxes and insurance included. Rate and product details.

If you are eligible for the program, you can claim 10 percent of the price of their home, up to an $8,000 maximum, against your 2008 federal tax returns due this year, or your 2009 federal tax returns due next year. The credit begins to phase out at a modified adjusted gross income of more than $75,000, or $150,000 for joint filers. Unlike last year's tax credit, this credit does not have to be paid back.

 
Author: Brian McKay
April 15th, 2009

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