The New York Federal Reserve Board recently conducted on study on the factors impacting housing affordability (click here to view). The interesting thing is that housing affordability among people who currently rent improves by a whopping 40% when down payment requirements are reduced. However, a 2% difference in interest rates has only a 5% impact on housing affordability.
This means that your down payment strategy has EIGHT TIMES MORE IMPACT on your home affordability vs. the interest rate on your mortgage. This is great news for homebuyers who qualify for some of the low down payment programs available in today’s mortgage market!
Please contact me for further information on how this may impact you.