Click here to close now.



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
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
As someone who has been dedicated to automation and Application Release Automation (ARA) technology for almost six years now, one of the most common questions I get asked regards Platform-as-a-Service (PaaS). Specifically, people want to know whether release automation is still needed when a PaaS is in place, and why. Isn't that what a PaaS provides? A solution to the deployment and runtime challenges of an application? Why would anyone using a PaaS then need an automation engine with workflow ...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Your business relies on your applications and your employees to stay in business. Whether you develop apps or manage business critical apps that help fuel your business, what happens when users experience sluggish performance? You and all technical teams across the organization – application, network, operations, among others, as well as, those outside the organization, like ISPs and third-party providers – are called in to solve the problem.
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
@DevOpsSummit taking place June 7-9, 2016 at Javits Center, New York City, and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
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, will discuss 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 effi...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...