Traditional mortgage down payments have always been 10 to 25 percent of the total purchase price of the property. more
Explore the Mortgage101 Library
Check Local Mortgage Rates
- Credit Inquiries
- Credit Profile
- Economic Terminology
- How to Improve Your Credit
- Credit Grades
- Credit Reporting Agencies
- Your Credit Report
- Other Credit Factors
- Fixing Credit Report Errors
- Steps to Take After Being Denied a Mortgage Loan
- Preventing Identity Theft
- Credit Questions & Answers
- Credit Scoring - How it Works
- Establish a Credit History
- Know the Score About Your Credit Rating
Learn More About...
In addition to mortgage loans for home purchases, there are also other loans available for various purposes that use the home for collateral.
Mortgage interest rates are determined by credit history strength, the number of points you pay, the size of your down payment and the type of loan program you choose.
Obtaining funding is crucial to buying a home. This requires applying for a mortgage, choosing a house that meets the appraisal standards, and determining the amount of the down payment.
There are dozens of different types of mortgage loan programs. They have been created to suit the varying needs of homebuyers.
When making a big move, it's essential to find out as much as possible about the schools, the neighborhoods, the housing costs and the community resources.
Many factors can affect your mortgage application and get you denied. Know what factors will hurt you and plan ahead so you can present the best financial picture to the lender. more
FHA (Federal Housing Administration) loans are popular with first-time home buyers. FHA loans are easier to get and have some advantages over conventional mortgages. more
- Second Mortgages: Advantages and Disadvantages
- Should You Refinance? Make Sure the Timing is Right
- How to Get Approved for an FHA Loan despite Bad Credit
- 3 Common Short Sale Mistakes
- What To Do When Mortgages Default
- Alternatives to Getting a 2nd Mortgage
- Home Equity Loans for People with Bad Credit
- 3 Reasons Banks Reject Short Sales
- FHA Eligibility with Bankruptcy and Foreclosure
- 3 Warning Signs of Loan Modification Scams
- Appraisal Basics
- Short Selling a Rental Property
- What Lenders Don't Reveal About Home Equity Loans
- Low Down Payment Loan Qualification
The Mortgage101 Blog
In states where foreclosures are processed quickly, the housing recovery also moved quickly compared to those states where foreclosures have languished in the courts, according to a new study. Pro Teck Valuation Services, a national appraisal firm, found that of the largest 30 U.S. metropolitan areas, the bottom performers were all in so-called judicial states – states where every foreclosure must go before a judge before completion. By contrast all of the top ten performing mortgage markets were in non-judicial states, with eight of them in California. “Two years ago much of the bad news was centered on California, a non-judicial state. Foreclosures were driving down prices and there were high REO discounts,” said Tom O’Grady, CEO of Pro Teck Valuation Services in a press release. “But banks moved swiftly to cut losses, peak foreclosure activity came and went, and many markets are now on the rebound. In fact, eight of our top ten metros for this month are in California.” When the housing bubble burst back in 2007, the nation was hit hard with wave after wave of foreclosures. Overly-inflated markets like California and Florida experienced especially high default rates as homeowners couldn’t keep up with their mortgage payments. The difference in the two states’ recoveries seems to be almost entirely due to the amount of government involvement required. California does not require courts to get involved whereas Florida does. The result is that lenders have been able to offload their inventory of foreclosures much faster while Florida still has a backlog. “It’s hard to sustain a market turnaround when 25-50% of sales are foreclosures. When foreclosures represent a significant share of total sales and their discounted prices pull down the prices of non-distressed sales, it is known as the ‘contagion effect.’ This month, that’s what is happening in our bottom ten metros, which also happen to be in judicial states,” said O’Grady. “Even though other market fundamentals are looking good, such as recent price appreciation and shrinking inventories, foreclosures are still playing a major part in holding these real estate markets back. A stable market cannot return until foreclosures play a less active role in the market.” more