Chart: Home affordability and the impact of rising mortgage rates!

Chart: Home affordability and the impact of rising mortgage rates!

Written by Michael Haltman Posted On Wednesday, 23 April 2014 02:39

HAVE YOU EVER BEEN TO A CLOSING WHERE THE TITLE WASN’T CLEARED? WE HAVEN’T!

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This article is from the pages of the Hallmark Abstract Service, New York website here.

The impact that an increase in mortgage rates has on real estate affordability, also known as purchasing power, is a concept extremely familiar to most prospective buyers who watch them on a daily basis until they are locked-in!

The chart below illustrates the point by showing how a 25 basis point increase in the mortgage rate for someone with a specific maximum monthly principal and interest payment in mind will impact the price of the house that they can afford.

In this case the desired ‘monthly nut’ is in the ballpark range of $2,044 and, as the mortgage rate increases from 4.50% to 5.50%, the price of the house that fits the payment criteria drops by $40,000.

Buyers of Residential or Commercial Real Estate in New York State or anyone refinancing an existing mortgage there can potentially save hundreds of dollars in closing costs with Hallmark Abstract Service! Click here to learn more.

Questions about HAS or the way in which we conduct our business? Please contact Michael Haltman by phone at 516.741.4723 or by email at This email address is being protected from spambots. You need JavaScript enabled to view it..

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Michael Haltman

Hallmark Abstract Service provides title insurance for both residential and commercial real estate transactions in New York State.

Hallmark Abstract President Michael Haltman is also extremely involved with the combat veterans 501(c)(3) Heroes To Heroes Foundation, serving as the Board Chair.

Hallmark Abstract Service

In 2008 we opened our doors focused on two primary goals:

Number one was to be a title insurance company that would provide clients with a superior finished product that completely protects their interests for what will likely be one of the largest transactions of their lifetime.

Number two was to insure that the experience of working with Hallmark Abstract Service was as easy and seamless as possible for all parties involved in the transaction!

From the number of satisfied clients who come back to Hallmark Abstract Service time after time for their title insurance needs, the evidence bears out that we have accomplished these two goals in the past and will maintain our client centric focus far into the future!

Michael Haltman

Post 1984 MBA in Finance from the State University of New York at Albany that concentrated on the tax-exempt market, Michael became a municipal bond analyst at Shearson/Lehman Brothers tasked with following general obligation issuers on the city and state level as well as housing bonds secured by mortgage pools.

This experience at Shearson/Lehman Brothers followed by stints at PaineWebber and Citigroup provided a broad framework and understanding of the real estate and mortgage markets.

As CEO of Exeter Commercial which underwrote and funded commercial mortgage loans as a correspondent lender, title insurance played a critical role in both the underwriting and closing process.

In 2008 recognizing both an opportunity and need, Hallmark Abstract Service was born.

www.hallmarkabstractllc.com

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