Real Estate Market Essay

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My paper is about the recent situation and growth in the Hudson real estate market. I spoke with Kira Blair who works at Wells Fargo bank as a personal banker. Her impressions reflect what I’ve found in my literature research, which is firstly about the trend in real estate market. Kira said the trends of the rental market is that the need for lower rental for young people will continue to increase because younger people were unable to afford the mortgages when they enter the workforce for the first time. So without the funds to make a down payment or the credit to be approved for a mortgage, young people opted to rent and they may continue to rent in many years. Kira said that the demand for buying houses or apartments are not as much as …show more content…

Furthermore, Kira told me that the most difference between today and the bubble years before is that the bank has a strict regulation for the “credit box”. During the subprime mortgage bubble years, the bank didn’t qualify the customers whether they have income or they have job and ability to pay for the loans which is a significant reason for the bubbles and thus a lot of people lost their home at that time. For the credit score part, Wells Fargo’s standards are Excellent (760+), Good (700-759), Fair (621-699), Poor (620 and below) and No Credit Score. A good credit score shows that you’ve responsibly managed your debts and consistently made on-time payments every month. She said that the credit score matters because it can impact your interest rate, term, and credit limit. The higher your credit score, the more you may be able to borrow and the lower the interest rate you could receive. For example, if you want to borrow a loan amount of $15,000. For an excellent credit status, the average APR is 5% and the monthly payment is $352. For a good credit status, the average APR is 5% and the monthly payment is $391 and for a fair credit status, the average APR is 15% and the monthly payment is $427. It is obviously that the credit score has a significant influence for the loan payment. If you do not have a high credit score, you have to pay more every

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