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☆ 'The 30-year fixed-rate mortgage is a uniquely American construct,' analyst says. Here's why
▼ + stars: | 2024-05-07 | by ( Ana Teresa Solá | ) www.cnbc.com time to read: +1 min

Most U.S. homebuyers taking out a mortgage opt for a 30-year fixed-rate — but they may not realize how unusual that offering is. "The 30-year fixed-rate mortgage is a uniquely American construct," said Greg McBride, chief financial analyst for Bankrate. True to its name, a 30-year fixed spreads out repayment over 30 years, with an interest rate that remains the same for the life of the loan. In 2022, 89% of homebuyers applied for a 30-year mortgage, according to government data analyzed by Homebuyer.com. "If we did not have the dominance of the fixed-rate mortgage in the U.S. residential mortgage market, we would see a much higher level of stress among existing homeowners," McBride said.

Persons: Greg McBride, Jacob Channel, McBride Organizations: homebuyers, Bankrate, LendingTree, Homebuyer.com, Finance Locations: U.S

Biden unveiled a plan that includes tax credits and down payment assistance to improve housing affordability. Eligible homebuyers would get this tax credit for two years, meaning you could get a total of $10,000 in tax credits for buying a house. Down payment assistanceAnother piece of Biden's plan for more affordable homeownership is the $25,000 in down payment assistance he wants Congress to provide to first-generation homebuyers. What hopeful homebuyers should knowAs a whole, this plan could substantially improve housing affordability, enabling more Americans to become homeowners. And even for homebuyers who qualify for tax credits or other assistance, saving up for a down payment remains a big barrier to homeownership.

Persons: Biden, —, Dan Green, homebuyers Biden, hasn't, doesn't, Green, Daryl Fairweather, Fairweather, White, homebuyers Organizations: Biden, Service, Federal Housing Finance Agency, Consumer Financial, homebuilders, Loan, Program, Bank of America Mortgage, Democrats

☆ 10 states where homeowners put the most money toward housing costs—No. 1 isn't New York or California
▼ + stars: | 2023-05-17 | by ( Mike Winters | ) www.cnbc.com time to read: +3 min

It compared median income in each state to housing costs, which included mortgages, taxes, insurance, utilities and HOA fees. The analysis used 30% since it's a common benchmark for housing costs in a monthly budget. Known as the "30% rule," financial planners typically recommend putting no more than 30% of household income toward housing costs. While the median income in these states is significantly higher than the bottom-ranked states, housing costs are also elevated. As with fourth-ranked Rhode Island, there's a limited amount of land to develop in Hawaii, which has pushed up housing costs.

☆ Firefighter Mike Webb went from owning a single duplex to acquiring 35 units, all while working 40 hours a week. He breaks down his financing strategies and his favorite approach for adding properties
▼ + stars: | 2022-12-24 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

Firefighter Mike Webb wanted his family to have a lifeline if he were ever laid off. Mike Webb didn't get into real estate so that he would never have to work again. Rather, the Maryland firefighter wanted his family to have a lifeline if he were ever laid off from his job — which was at one point a credible possibility. "Once I got started in real estate, I was just like, 'Ah, man, I didn't know all this stuff was possible. So to me, I'm able to do something that gives me purpose and quenches something that real estate doesn't."

☆ Real-estate investor Mike Webb has acquired a 35-unit portfolio all while working 40 hours a week as a firefighter. He shares his top 3 tips for new investors navigating the sky-high mortgage rate env
▼ + stars: | 2022-11-10 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

The outlook for real-estate investors has dramatically changed over the last year. Mortgage rates are at their highest levels in two decades. The outlook for real-estate investors has dramatically changed over the last year. Mortgage rates have skyrocketed above 7% with the Federal Reserve taking drastic tightening measures to rein in four-decade-high inflation. Currently, 30-year fixed mortgage rates are at their highest levels in two decades.

☆ How to make the buy vs. rent housing decision as mortgage rates surge
▼ + stars: | 2022-09-28 | by ( Cheryl Winokur Munk | ) www.cnbc.com time to read: +4 min

With mortgage rates rising, more people may be asking themselves the age old question: rent or buy? The latest Federal Reserve interest rate increase, while not directly tied to mortgage rates, is having some effect on lending and home prices. Although they are higher than the recent past, rates are still among average levels over the last 30 years, he said. If the buying elements are right for you, it could still make sense to buy, even as rates are rising. Phillips offers the example of a client who is looking to buy a house in the $200,000 to $275,000 range.

☆ These are the top 5 most expensive states to buy a house in 2022
▼ + stars: | 2022-09-20 | by ( Celia Fernandez | ) www.cnbc.com time to read: +1 min

An August study from homebuyer.com used income data and home prices to determine the most expensive states to buy a house in 2022. The list ranked each state based on the average percent of income it takes to cover monthly mortgage costs — from highest to lowest. Hawaii is the least affordable state to buy a house this year. The median home price is $505,000, and the estimated monthly mortgage payment is $2,399.32. According to homebuyer.com's study, it takes 21.92% of the median household income to buy a house there and it has an estimated monthly mortgage payment of $1,483.30.

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