Welcome!

News Feed Item

NeighborWorks Network Invites Consumers to Come in for a Homeownership 'Check-Up'

Do You Know Your Homeownership Numbers?

WASHINGTON, DC -- (Marketwired) -- 06/02/14 -- Successful homeownership begins with knowing 'your numbers' according to Marietta Rodriguez, vice president of homeownership programs and lending at NeighborWorks America. Just as with managing health requires keeping an eye on key physical indicators, the path to successful homeownership begins with knowing the four most important financial numbers that lead to sustainable homeownership.

"Homeownership is what the vast majority of Americans want to achieve and as National Homeownership Month starts we're urging consumers to gain the knowledge to succeed in this very tough housing environment," said Rodriguez.

The four key homeownership numbers are:

1. How much mortgage could you comfortably afford
2. What are current mortgage rates
3. What is your credit score
4. How much do you have for a down payment and closing costs

How much home could you comfortably afford is an important first number because it's the one number that probably won't change during the home buying process. How much home a homebuyer could afford is based on their income at the time of purchase.

"The rule of thumb for housing expense is that it should be no more than 30 percent of gross income," said Rodriguez. "So if your annual income is $60,000, then a homeowner's total annual housing costs shouldn't be more than $18,000 per year or about $1,500 per month. Going above that payment amount could lead to budget troubles down the road."

Basically, keeping an eye on the monthly payment limit means that a buyer could purchase more home if the mortgage rate falls or if the price of the home falls, and less home if either one increases.

That leads to the next number: the level of mortgage rates. Higher mortgage rates mean higher mortgage payment amounts, whether the price of the home a person wants to purchase goes up or not.

"Mortgage rates are still lower than they were for most of the past 20 years, creating an opportunity for more affordable mortgage payments," Rodriguez added. "According to forecasts by economists and statements by the Federal Reserve Board, it's not likely that 30-year fixed-rate mortgage rates will go much higher in the next 12 months."

NeighborWorks believes that homebuyers should work with a housing counselor to identify several mortgage lenders and then lock in the best mortgage rate for as long as possible at the lowest cost, allowing time to search for the right home.

Although the foreclosure crisis has dropped off the front pages, home foreclosure is still affecting hundreds of thousands of families. Research for NeighborWorks America found that working with a NeighborWorks housing counselor could help reduce the chance of mortgage default and foreclosure.

Knowing the credit score number affects the mortgage rate. Lenders are slowly moving their credit score targets to levels where more homebuyers could access a low-rate mortgage. However, if the homebuyer's credit score is below the threshold, the mortgage will cost more, if a mortgage is available at all.

"That's why NeighborWorks organizations around the country are here to help consumers, not just homebuyers, understand what helps and hurts a credit score," said Rodriguez "If a person can't come in to see a NeighborWorks organization, we recommend caution when thinking about paying for credit repair services. There are no quick fixes to credit issues."

Another number that doesn't usually change overnight is a buyer's savings or money available for down payment. A survey by NeighborWorks America, a national nonprofit housing and community development corporation based in Washington, DC found that saving for a down payment is second only to saving for retirement. Even so, saving the thousands of dollars usually needed for a minimal down payment takes time.

"To help homebuyers close the time gap, we encourage them to seek out down payment assistance programs that may be available from us or other sources, as well as to retain a Realtor who will negotiate for closing costs assistance from the seller if possible," explained Rodriguez. "Closing costs are not the down payment, but having help here means less money from savings has to be used for the overall financing."

About NeighborWorks America
NeighborWorks America creates opportunities for people to improve their lives and strengthen their communities by providing access to homeownership and to safe and affordable rental housing. In the last five years, NeighborWorks organizations have generated more than $19.5 billion in reinvestment in these communities. NeighborWorks America is the nation's leading trainer of community development and affordable housing professionals.

PDF Attachment Available: http://media.marketwire.com/attachments/201406/75905_homeownership-handout.pdf

Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2607212

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
“delaPlex Software provides software outsourcing services. We have a hybrid model where we have onshore developers and project managers that we can place anywhere in the U.S. or in Europe,” explained Manish Sachdeva, CEO at delaPlex Software, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor – all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, discussed how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved efficienc...
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
In his session at @DevOpsSummit at 19th Cloud Expo, Yoseph Reuveni, Director of Software Engineering at Jet.com, will discuss Jet.com's journey into containerizing Microsoft-based technologies like C# and F# into Docker. He will talk about lessons learned and challenges faced, the Mono framework tryout and how they deployed everything into Azure cloud. Yoseph Reuveni is a technology leader with unique experience developing and running high throughput (over 1M tps) distributed systems with extre...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
We all know the latest numbers: Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from last year, and will reach 20.8 billion by 2020. We're rapidly approaching a data production of 40 zettabytes a day – more than we can every physically store, and exabytes and yottabytes are just around the corner. For many that’s a good sign, as data has been proven to equal money – IF it’s ingested, integrated, and analyzed fast enough. Without real-ti...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
As companies gain momentum, the need to maintain high quality products can outstrip their development team’s bandwidth for QA. Building out a large QA team (whether in-house or outsourced) can slow down development and significantly increases costs. This eBook takes QA profiles from 5 companies who successfully scaled up production without building a large QA team and includes: What to consider when choosing CI/CD tools How culture and communication can make or break implementation