Is the economy improving? Mortgages in Chicago, Illinois – June 2012
Lending is Still Tight, but Things Are Looking Up
You might be starting to notice that our economy is recovering, slowly yet surely, from the slump we have been in the past few years. Federal Reserve Chairman Ben Bernanke has even remarked, in his recent speech, that the banking industry has been showing improvement.
Also, we have been seeing issues such as loan delinquency and even foreclosure having the lowest rates since 2009. That means homeowners who have previously been unable to meet the demands of mortgage loans have been securing payment the last few years.
While this is great news, it doesn’t mean that everyone can rush right out and refinance, or purchase a new home. Most perspective home owners will find that lending is still heavily restricted denied, especially when it comes to home loans and mortgages. However, if you could qualify for a home loan, despite banks reservations on lending, the current mortgage rates for fixed-rates is at an all-time low! Meaning, this is the perfect time to apply for a mortgage loan if you have been considering it.
With a little effort and provide you can afford it, you could be approved for this new low fixed-rate. Make sure you brush up on what you need to know when considering applying for a mortgage by visiting our educational articles. Also, consider trying Chicago Mortgage Spot’s payment calculator to see exactly what you can afford monthly.
Where Does Illinois Stand?
So what does the improving economy mean for current or perspective homeowners in Illinois? Unfortunately not much, yet.
While foreclosure activity has been dropping on a whole across the US, there are several cities (often the largest) still struggling with increasing foreclosure rates. Illinois happens to be one of these cities that are still struggling with a high rate of foreclosures and delinquent payments. Currently Illinois is ranked as the third highest state for foreclosures and the fifth highest for delinquency. While Illinois is not the worst, these reports don’t give much confidence to those in the state thinking of buying a home or those considering relocating to the Illinois area.
In fact, a recent survey is showing that Illinois residents are not happy with their state and the effect the think it is having on their finance struggles. Though it isn’t exactly the case that all locals are struggling, while some are trying to bring high-profile attention to the state’s plight, others are actually taking advantage of recent decrease in house cost by buying up foreclosed property.
No matter which position you find yourself, either struggling with a current mortgage payment or considering buying a home, it is important to understand the current market and where you stand.
Consider the Alternative – A Condo
The city lifestyle of Chicago and the surrounding areas lends itself to condo ownership. Not only are there more condos, compared to traditional homes, but they offer a lower cost alternative to home ownership.
While FHA restrictions have been pretty tight on mortgage programs for condominium lending, there might be future plans to loosen the strict lending policies. Good news for those considering condo ownership in the Chicago area and even better news for those owning / building condos in the area. In fact, a local condominium construction project was able to acquire funding, funding previously cut, to include additional floors in a building built in Lincoln Park.
If you are thinking about purchasing a home in Chicago, this might be a great time to consider condo ownership and to find out for yourself if it is a good time to invest in this home ownership alternative.