The State of New York is one of the original 13 colonies of the United States and today is one of the most populated states in the country. New York has a popular of just under 20 million people, which makes it the 7th most populated state in the country. Due to the high population, it frequently is a leader in new mortgage originations each year.
Mortgage Laws in New York
For those that are looking to buy a home, or provide a mortgage, in the State of New York, there are a variety of state mortgage laws that should be taken into consideration and fully understood. The state’s mortgage law is governed by NY Banking Law 6-1, which provides a number of different rules and regulations. First, the state has tight home filling laws, which can prevent a person from buying and selling a home too quickly. If the flipping law is violated, it can lead to higher taxation and even stiff penalties.
Lenders in New York need to be aware of some restrictions that they have. First, mortgage lenders are not allowed to provide negative amortization loans in the state. This means that loans must be paid down following a traditional mortgage schedule. When giving out loans, they also need to be aware of restrictions that prevent giving out loans to people with low credit scores or high debt-to-income ratios. If these loans are given out, additional reserves and levels of mortgage insurance are typically required.
Mortgage rates in the State of New York are typically a little bit higher than the rest of the country. This is partly due to demand for mortgages as well higher additional taxes and fees that are lumped into the cost of the mortgage. Today, mortgage rates on a New York mortgage are around 4.20% for a 30-year mortgage, 3.35% for a 15-year mortgage, and 3.47% for a five-year ARM. These rates can be higher if a borrower has a higher debt-to-income ratio or low credit score. Those that have less than a 20% down payment will also have to pay additional private mortgage insurance.
Health of the Housing Market
The health of the housing market and future forecast for New York varies considerably by each area of the state. New York City overall has had a strong recovery in housing. The city is the most populated and most densely packed cities in the country. It is also a center for culture, entertainment, and professional demand, which has helped it have a continued level of demand from both domestic and foreign investors.
Upstate New York, which includes a variety of big cities including Buffalo, Rochester, Albany, and Syracuse has not had as strong of a recovery. These cities have more reliance on manufacturing and blue-collar industries, which have been slower to recover. However, values in these cities have come up in recent years as the rate of foreclosure has reduced.
The State of New York has several major cities that have high populations. New York City, which is the most populated city in the country, has a population of over 8.2 million people. Buffalo has a population of 261,000, Rochester has a population of 210,000, Yonkers has a population of 195,000, and Syracuse has a population of 145,000. The state capital, Albany, NY, has a population of around 98,000.