The Election's Effect on Real Estate and Lending

How has the world of real estate and lending changed since the election? Today I'm joined by mortgage lender Denise Lindsay of CIB Bank to help me explain.

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Today I'm happy to have Denise Lindsay with CIB Bank with me to discuss the effects of the election on our market.

According to Denise, the news has been creating some chaos in the mortgage industry when in reality, there hasn't been any change in the mortgage industry. The biggest change has been a 0.25% increase in interest rates. When the economy is strong, rates go up because they don't need to stimulate the economy like before.

Interest rates for a mortgage are actually dictated by the program you choose. For example, you can get a 30-year fixed rate mortgage with a 4.125% interest rate or a 30-year mortgage with a 3.375% interest rate. FHA and VA mortgages have rates as low as 3.5% for 30-year fixed rate mortgages, and rural housing loans have a similar rate.

How different is that from before?

Despite the chaos you hear in the news, the mortgage industry hasn't changed at all.

For a $100,000 house, the difference is an extra $0.21 per $1,000 or about an extra $21 a month on your house payment with rates going up 0.25%. As Denise points out, the news media tends to make a big deal out of it, but it's really not a big deal at all. In fact, Denise says, lending is easier because homebuyers can have a credit score as low as 620 and still buy a house with as little as a 3.5% down payment.

If you have any questions about improving your credit, saving for a down payment, or anything relating to preparing for a mortgage, you can call Denise at (217) 460-1588 or email her at Denise.Lindsay@cibbank.com. She can also tell you about some upcoming grant programs in Illinois that can help you buy a home.

If you have any questions about the central Illinois market or you're thinking of buying or selling a home, give me a call or send me an email. I'd love to help you!