Rising mortgage rates make it impossible for individuals to purchase property
2008-07-17 16:38:55 (GMT) (Caymanmama.com - Real Estate News News)Albany, New York (CaymanMama.com) — With the rising inflation rates, purchasing houses in New York is all the more difficult for the common man. The real estate market is bombarded with people who are looking forward to secure the best property deals without undertaking too many risks.
However, the cash-down payment is necessary; a large number of people are finding it extremely difficult to locate properties which can be purchased on mortgage basis. A mortgage broker based in Pennsylvania reported that he is having a tough time handling a large number of individuals who are approaching him for new mortgages.
A recent real estate survey revealed that a similar trend is catching up with the rest of the nation and may result in the gradual slow down of the housing market’s recovery process. Another major obstacle faced by buyers is the high down payments demanded by real estate brokers. Individuals are expected to make cash payment of at least 5% in order to finalize the deal. The financial institutions have become stern so they prefer to give out loans only to those individuals who are capable of providing at least 10% of the total cost of the purchased property as cash down.
The situation gets even worse in avenues involving bigger investments. Big companies such as Fannie Mae (FNM) and Fortune 500 demand at least 20% of cash down payment before any substantial deal can be finalized. There are certain buyers who prefer to purchase real estate properties for investment purposes. The real estate dealers have asked such buyers to pay at least 25% of the total amount if they are looking to purchase a property.
CaymanMama.com - Press Release Distribution Service
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