The 7 Most Unaffordable Cities for Real Estate in the USA (And 3 Affordable Gems!)

As prices continue to rise across the board with everything from food to gas, it's no wonder that real estate prices are high in many cities across the USA. While this is the case for a large number of cities, there are also certain areas in which prices are decidedly low. Here's a small look at the most affordable and unaffordable cities within America.

The Seven Most Unaffordable Cities

Oakland, CA - Though Los Angeles and San Francisco are 2 California cities that may first come to mind, Oakland is also highly expensive when it comes to real estate, with a median home value of nearly $450,000, which is over 100 percent more than the national average.

Los Angeles, CA - Los Angeles is another city in California that is particularly unaffordable. With a median household income of just under $50,000, the exceedingly high median home value of nearly $470,000 is largely galling in its expensiveness.

Boston, MA - The Boston real estate market becomes more unaffordable with each passing year. The median home value within the city is set at well over $350,000. This, combined with the relatively high cost of living, can make for a bleak outlook.

New York City, NY - As one of, if not the most, unaffordable cities in America, NYC is also the most populous city in the country. While the borough of Manhattan is the most expensive for real estate prices, Brooklyn and Queens aren't much better, while the median home value of the entire city is just over $500,000.

Washington, D.C. - Though the median household income within the city of Washington D.C. is higher than the national average, the median home value sits at a substantial $443,000, with a cost of living over 40 percent above the national average.

San Francisco, CA - Living in San Francisco is extremely unaffordable, though mitigated a bit by higher household incomes. The median home value is likely the highest in the nation, at just over $750,000.

Honolulu, HI - As the capital city of Hawaii, Honolulu is much higher than the national average in everything from utilities to transportation, with the median home value sitting at $547,000.

Three Affordable Alternatives

Cleveland, OH - Though there are a surprising amount of affordable cities in Ohio, Cleveland has a median home value of just over $75,000, well below the state average of $129,000.

Knoxville, TN - Knoxville is a city in Tennessee that combines a generally low median home value of $140,000 with a median household income of just over $60,000, which is much higher than the national average.

Syracuse, NY - If you want to live in New York, but can't afford the high real estate prices of NYC, the city of Syracuse has a low median home value of just under $80,000.

Can One Missed Mortgage Payment Affect Your Credit Rating? Yes! Here's What to Do if You Miss One

Most people don't know whether or not a single missed mortgage payment can have serious consequences for their credit score.

The good news is that there are things that can be done to mitigate the damage and help anyone who has missed a payment repair their credit. What are some options to help homeowners get back in the good graces of their creditors?

Own Up To The Mistake

The best thing to do is to admit that the payment was missed and immediately make amends for it. For the most part, mortgage lenders are sympathetic to the fact that people miss payments for reasons that may be beyond their control.

By calling the lender as soon as it appears that a payment may be late or not forthcoming at all, it is easier to make arrangements to roll that payment back into the mortgage or take other steps to decrease the odds of a negative remark being made on a credit report.

Don't Let A Single Missed Payment Turn Into Multiple Missed Payments

While a single missed payment can hurt a credit score, it is important to not compound the mistake by missing more payments. In some cases, someone may decide to make up for the late payment before making any further payments.

However, that only makes the mistake worse because a borrower will be considered late on all subsequent payments. It is better to make the most current payment on time and make the late payment the secondary priority.

Hire A Third-Party If Necessary To Negotiate A Loan Modification

It is important to not let emotion get in the way of negotiating a modification to a mortgage. When a borrower hires a credit counselor or a bankruptcy attorney to talk his or her creditors, the negotiations can stay professional and on topic.

In most cases, a lender will be willing to make modifications for those who need them because it is better to get the money from the borrower willingly instead of having to go through a foreclosure proceeding.

While a missed mortgage payment can be bad news for a credit score, it is possible to make amends for the missed payment while minimizing long-term damage to a borrower's credit score. By owning the mistake, staying current on all future payments and working with a third-party, it may be possible for a lender to forget that the missed payment ever happened.

National Association of REALTORS Existing Home Sales Exceed Projections

According to the National Association of REALTORS®, existing home sales surpassed both May sales and expectations for June. Sales of previously owned homes increased by 2.60 percent in June and reached a seasonally adjusted annual level of 5.04 million sales. June's reading was the third consecutive monthly increase in sales of existing homes and was the highest reading for existing home sales in eight months. Existing home sales remain 2.30 percent below the June 2013 reading of 5.16 million sales of existing homes.

Analysts projected sales of 5 million existing homes for June against May's initial reading of 4.89 million sales of previously owned homes; the May reading was later revised to 4.91 million sales. Lawrence Yun, chief economist for the National Association of REALTORS® said that market conditions are becoming "more balanced," and noted that inventories of existing homes are at their highest level in over a year and that price gains have slowed to much more welcoming levels in many parts of the country.

Housing Market Headwinds Declining

After a particularly harsh winter and lagging labor reports, analysts forecasted lower annual sales of existing homes for 2014 than for 2013. Labor markets are stronger according to recent labor market reports and a declining national unemployment rate. Steady work is an important factor for families considering a home purchase; as labor markets improve, more would-be homeowners are expected to become active buyers.

Housing markets are not without challenges. In recent unrelated reports, the Federal Reserve has noted higher than anticipated inflation may cause the Fed to raise its target Federal Funds rate in the next several months. Gas and food prices, important components of consumers' household budgets continue to rise and could slow save toward a home for some families. Steve Brown, president of the National Association of REALTORS®, said that first-time and moderate income buyers continue to deal with affordability due to increased FHA costs and tight mortgage credit. Relief may be in sight as a slower pace of home price growth suggests that more buyers may be able to afford homes.

FHFA House Price Index Reports Gain in May Home Sales

FHFA released its May index of home sales connected with mortgages owned or backed by Fannie Mae and Freddie Mac. The index posted a month-to-month gain of 0.40 percent in May and a year-over-year gain of 5.90 percent year-over-year. FHFA said that increased sales were driven by a 9/60 percent increase in sales in the Pacific region and that average home prices remain 6.50 percent below April 2007.

Is Now the Time to Consider a 15-Year Mortgage? Five Reasons to Give the 15Y Another Look

A 15-year fixed mortgage is, as its name suggests, a mortgage that's paid off after 15 years. Since it amortizes fully, after that amount of time you won't have to pay anything else. This type of mortgage has a lot of benefits, and below we'll share just a few of them.

1) No Need For Payments After Retirement

Here it highly depends on when in life you choose to take on the mortgage. However, most people decide to take on a mortgage at around 30 years of age.

If this is the case for you, then it means you'll be 45 years old when your mortgage will be fully paid. There will be no need to worry about having to use Social Security or pension checks to pay it off.

Another consideration is the fact that the older you are, the more your health costs will go up. Having costs like that pile up while having to make mortgage payments can be a huge problem. For that reason, not having to pay off your mortgage after retirement is a tremendous bonus.

2) Your Home Will Be Yours Sooner

You might think your house is yours the minute you step into it. However, in reality, it's only yours after you have fully paid your mortgage off. Until then, it can be repossessed if you fail to make payments.

With a 15-year mortgage, your home will become yours in the blink of an eye. Then, you'll have plenty of time to enjoy other things in life, knowing you already own your home.

3) You'll Pay Less Interest

If you were to pick, say, a 30-year mortgage, there will be twice as many years in which interest will add up. This will more than double the amount you end up having to pay, as mortgage interest compounds over time.

As such, getting a 15-year mortgage will not only reduce the time you'll pay it off; it will also reduce the amount you pay back. Saving both time and money is an amazing deal.

4) Get Lower Rates

On most 15-year mortgages, the amount you have to pay in terms of rates is usually lower than for 30-year ones. As such, you'll be saving money in two ways. First, you'll save by reducing the time, then, by reducing the actual rate.

5) Learn To Push Yourself

Some people fear getting a 15-year mortgage. The reason is that they think the payments will be too expensive. They think that getting a 30-year mortgage is likely a better idea.

If you can't afford to make the payments of a 15-year mortgage, you might want to reconsider. However, if you can afford it, but you're afraid, don't be. Pushing yourself to achieve something you truly want is a good thing. You'll become a stronger person, and you'll have more reason to be proud of your achievement.

A 15-year mortgage has many benefits. The main one is simply that you'll be able to pay it faster, which means that you won't worry about it for long. This, in addition to the fact that you'll be paying less are very convincing factors.

If you'd like to learn more about 15-year mortgage plans, contact your mortgage professional for more information.

What's Ahead For Mortgage Rates This Week - July 21, 2014

Last week's economic news offered a variety of indications that the economic recovery continues, but some readings missed their expected levels. The Philadelphia and New York branches of the Federal Reserve Bank reported higher than anticipated manufacturing for their respective regions and new jobless claims were lower than expected.

Fed Chair's Senate Testimony Hints at Coming Interest Rate Hike

Federal Reserve Chair Janet Yellen testified that the Fed might have to raise interest rates sooner than expected if the economy continues to outperform the Fed's projections. Ms. Yellen said that the central bank presently estimates that the first rate increases will take place approximately one year from now.

The Federal Open Market Committee (FOMC) of the Fed has repeatedly stated that members will continue to review data and economic conditions changing monetary policy. Ms. Yellen said in last week's remarks that this holds true whether economic conditions improve or decline.

In other Fed-related news, the Philadelphia Fed released its manufacturing index for July with higher than expected results. The Philly Fed's reading for July was 23.90 as compared to expectations of 16.50 and June's reading of 17.80.

The New York Fed reported a similar trend for July with a reading of 25.60 as compared to an estimated reading of 17.50 and June's reading of 19.30. This is good news after the Northeast's economy was slammed by severe weather last winter. Weather conditions stalled area housing and labor markets.

Weekly jobless claims were lower at 303,000 than expectations of 310,000 new jobless claims and the prior week's reading of 305,000 new jobless claims.

Home Builders Post Positive Confidence Reading for July

The National Association of Home Builders posted its highest builder confidence reading in six months for July with a reading of 53 against the expected reading of 50 and June's reading of 49. Numbers above 50 indicate that more builders surveyed have a positive outlook than not.

Housing Starts for June were reported lower than expected at an annual level of 893,000 against an expected reading of 1.02 million and May's reading of 985,000 housing starts.

Mortgage Rates Lower

According to Freddie Mac's weekly survey, average mortgage rates were slightly lower last week. The average rate for a 30-year fixed rate mortgage fell by two basis points to 4.13 percent. Discount points were 0.60 as compared to the prior week's reading of 0.70 percent. The average rate for a 15-year fixed rate mortgage was 3.23 percent as compared to the previous reading of 3.24 percent.

Discount points for a 15-year mortgage averaged 0.50 percent against the prior week's reading of 0.50 percent. The average rate for a 5/1 adjustable rate mortgage dropped by two basis points to 2.87 percent with discount points unchanged at 0.40 percent.

The University of Michigan's Consumer Sentiment Index for July fell just short of expectations at 81.3. Analysts expected a reading of 83.0, based on June's reading of 82.50. Analysts said that although labor markets are improving, consumers continue to face rising costs for gasoline and food, which likely explained the dip in confidence for July.

What's Ahead

This week's economic news releases include Existing Home sales from the National Association of REALTORS®, New Home Sales from the Department of Commerce and the FHFA House Price Index. The Chicago Fed is set to release its National Activity Index. Freddie Mac mortgage rates and New Jobless Claims will be released Thursday as usual.