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D.C. ranks high for increase in mortgage payments
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Related Topics: WASHINGTON
WASHINGTON (Map, News) - Would-be homebuyers are seeing their potential monthly mortgage payments creeping upward even though median home prices are holding steady inside the Beltway and dropping in farther-out areas.
The annual percentage rate for Washington-area mortgages has jumped from 5.88 percent in mid-April to 6.43 percent in the beginning of June, according to Zillow, an online company that provides mortgage quotes from lenders and property appraisal estimates.
Though the increase in the actual APR was actually one of the lowest among the 40 largest metropolitan statistical areas, the Washington region ranked 12th for the greatest monthly increase in mortgage
payments.
In an area such as Washington, which has more expensive homes to begin with, a “slight change in APR makes a much more dramatic difference” in the monthly mortgage payment, said Amy Bohutinsky, director of communications for Zillow.
Zillow calculated the figures for a 30-year fixed loan for someone with good or better credit (credit score above 680).
The online company used its median prices for the first quarter from each metropolitan area, and deducted 20 percent as the down payment.
The APRs from each of the 40 markets were averaged from more than 25,000 loan quotes given to prospective borrowers from April 13-19 and June 4-10 from just under 3,000 lenders on Zillow’s site.
In the Washington area, the monthly mortgage payment rose $111.25. The median price for a home in the Washington metropolitan statistical area — which includes farther-out areas such as Clarke, Fauquier, Spotsylvania, Stafford and Warren counties in Virginia — was $387,000, according to Zillow.
Payments in other parts of the country are going up as well. San Jose, Calif., topped the list, with a $277.78 increase on a median home price of $688,000. Pittsburgh saw the smallest dollar increase, with only a $42.04 jump on a median home price of $105,500.
This increase doesn’t appear to be having a significant effect on homebuyers yet. The number “has to be higher before it becomes a factor,” said Donna Evers, president and broker of Washington-based Evers & Company Real Estate. This may happen if the APR gets up in the 7 percent range, she said, but it’s “too hard to tell” if or when this will happen, she said.
wblake@dcexaminer.com
Comments from Examiner Readers
4:24 PM MST on Fri., Feb. 1, 2008 re: "Baltimore eyes more lawsuits against mortgage lenders in foreclosure fiasco"
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Union Man said:
This whole mess is Bob Erhlich's fault. Everything that is screwed up in Maryland is Erhlich's fault. Bob Erhlich is also responsible for the Titantic sinking, the explosion of the Hindenburg, the Challenger disaster, The 9/11 attacks and lead paint in toys!
104 agree | 108 disagree
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Tax Free Marylander said:
so can the citizens who pay their bills sue the government because the government put pressure on the lenders and banks for their Equal Opertunity Lender clause? If the government kept their hands out of the cookie jar, and not base thier tax collecting on the money they received from all the questionable loans being made, none of this would have happened! But cities like Baltimore, Cleveland, Philidelphia,,,, banking phoney money. Now that the phoney money is not there, they turn to sueing and illegal shake downs as their new source of income. Just speaking the truth here, if you read and research, you'll understand that our governments are leading us down the road to bankruptcy, so they can get more control over us little people.
117 agree | 98 disagree
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Galt said:
Perhaps if Baltimore would elect someone who would actually see to the business of the City, policing criminals foremost, perhaps it wouldn't need to file mortgagee conspiracy lawsuits.
119 agree | 112 disagree
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fed up with hearing we should "blame the lenders" said:
"Dixon reiterated her concerns that predatory lenders contributed to the rash of foreclosures plaguing the city" - OH REALLY? Didn't these people know what their income was when they signed for these high-risk loans? Of course they did! There may be "predatory" lenders out there but more importantly there were too many "stupid" people who wanted to own a home at any cost. And the cost, as usual, will be on the backs of responsible citizens.
93 agree | 102 disagree
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Examiner Reader said:
So let me get this straight. It's Wells Fargo's fault that people defaulted on their mortgages. Who are they going to blame next? I guess the city will try to extort money to provide free housing to people who aren't responsible enough to pay a mortgage.
126 agree | 100 disagree
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Fed up with LEFTARDS said:
What does Ehrlich have to do with it other than the leftards of this state blame everything on him?
124 agree | 104 disagree
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Fed up with LEFTARDS said:
Sheila the Shoe is sure to run out of town EVERY mortgage company now willing to give loans to those with questionable credit. What an idiot she is. This is nothing short of extortion Je$$ie Jack$on style.
114 agree | 101 disagree
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Examiner Reader said:
According to industry analysts, the vast majority of these forclosures happen because the borrow has made NO attempt to contact the lender -- but just walked away from their loan. Sorry folks, you have to take responsibility for your affairs.
122 agree | 93 disagree
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Examiner Reader said:
maybe.. and this is just a crazy thought here... the foreclosure rate is higher in the city than in the "white suburbs" because "white suburbians" PAY THEIR BILLS!!!!!!! ever think of that?? huh?
123 agree | 129 disagree
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Purgatory said:
These lenders are going to start redlining the City because of its litigous attitude. I think unless these companies blatantly broke the law and were acting in discord with the law it is the buyers responsibility to be sure they understand what they are getting themselves into when they sign. If I can't pay my credit cards bills because I didn't realise they are are going to require me to pay the bill with interest each month is the governement going to bail me out and is the City going to bring suit against the cc companies for taking advantage of my stupidity? I think not!! Well then again maybe!!
130 agree | 116 disagree
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Examiner Reader said:
The law suits will drive honest lenders out of the City. Government needs to get out of the way and let the market take care of itself. This problem would not have happened if government had not forced lenders to stop red lining.
128 agree | 107 disagree
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Examiner Reader said:
Maybe there should be a FUBU mortage bank.
124 agree | 97 disagree
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Puzzled said:
Why not! You can't combat crime or do any of the heavy lifting. SUE!
116 agree | 116 disagree
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Examiner Reader said:
It should be pointed out that suing by Baltimore city of mortgage lenders just might be a two edged sword. Ms. Dixon could find her position on lawsuits against mortgage lenders to be very precarious indeed for the city.
125 agree | 125 disagree
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Examiner Reader said:
dont shop for a new loan. go back to the company that screwed you the first time. just shove those pesky f b i agents out of the way.
143 agree | 132 disagree
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Examiner Reader said:
Nice going Ehrlich.
153 agree | 143 disagree
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