Georgia residents who are looking to buy a home in the near future may find have to face more expenses. This is because home values are increasing while interest rates on mortgages are also going up. Mortgage rates on a 30-year loan with a fixed rate went up to 4.46 percent in March. This is the highest level since January 2014. Furthermore, the average mortgage payment for a home at the national median price point is up 13 percent from a year ago.
In some markets, the price of a home has gone up much faster than the national average. Median mortgage payments in Seattle have increased $449 from a year ago while payments in cities like St. Louis are only up $100 to $200 a month.
As the cost of a mortgage increases, it will be harder for many homeowners to limit their monthly payments to 30 percent of their annual income. This is the level at which a mortgage payment may become too much for a person to afford. However, some believe that this guideline doesn't apply in today's market. Regardless, increasing home prices could force buyers to choose between what they can afford and what they absolutely want from a property.
Having an attorney may make it possible to better understand purchase or mortgage contract terms. When a buyer understands what he or she is agreeing to, it's easier to find a suitable agreement. Generally speaking, buyers are obligated to take ownership of a home or repay a mortgage after documents have been signed. An exception may exist if a lender or seller engaged in fraud against the buyer.