Mortgage Changes To Watch

According to Forbes the year 2017 has a few changes in store.

  1. Prices will rise but slower than in 2016
  2. Affordability will worsen
  3. Mortgage rates will be moving up and down more than in the past
  4. Availability of credit might improve

So what this means is no one really knows what might happen.  What we do know from past experience is if you buy a home with a mortgage too large and are pressed to make  the payment every month small things like increased in gas prices ( could cost $150.00 more to fill car every month) or heating oil along with a reduction in hours worked could send many into foreclosure because they can no longer make the payment. 

You need to buy a home that does not take all of your extras income. buy something that is 25 to 30% of your income. This way you have enough left over for changes in the economy and in income.  In San Antonio mortgage loans can be 80% or even 95% of the value. Make sure you have taken the time to save enough for a down payment which will allow you to get the home sold if you need to move fast. Equity will help but not before 3-5 years have passed. Your down payment is your safety net for the first few years. 

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