What the Crystal Ball Holds for Mortgages in 2014

Mortgages in 2014Come, gaze into Equifax’s crystal ball and see into the future of
mortgages! While this may seem like a mystical way of exploring, finance experts have researched mortgages in 2013 to come up with a list of what to expect in 2014 – and surprise, they aren’t too different from 2013’s mortgages. Overall, the experts predict 2014 to be even more demanding than 2013!
It’s still a good idea to tighten up on your spending habits, build your
credit score and work on saving because:

  • Cash will continue to be king. When it comes to financing versus cash, sellers will continue to choose the buyers who can bring more to the table. All cash deals (without a bank to deal with or strings attached) are the best for the seller, and the closer you can get to this kind of transaction, the better off you will be.
  • Down payments are going to be bigger. With the eagerness of so many on the market, down payments are a sign that the buyer has saved and is ready to invest in their next home. In 2013, it wasn’t too unusual to see 10 percent down, and Equifax expects that 10 percent or more will be a defining factor in 2014.
  • Government financing will be expensive. Government-backed options like FHA, VA and USDA loans are going to be competitive and come with additional costs, like increasing mortgage insurance premiums, which add to the month to month cost of the loan and can overcome the attractive low down payment.

Check out the full article for more tips, tricks and help when it comes to being ready to get a Chicago mortgage in 2014!