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
- Understanding Mortgage Trends
- Home Mortgage Rate Factors
- Home Mortgage Rate Factors
- Mortgage Market Information
- Bad Credit Home Equity Loan Rate Fundamentals
- Find Better Bad Credit Home Equity Loan Rates
- Negative Amortization Explained
- 2 Ways to Find Low Rate Mortgage Loans
- Foreclosure vs. Bankruptcy: Which is Worse?
- Positive and Negative Mortgage Points Explained
- Annual Percentage Rate (APR)
- Pay Points For Lower Rate
- Bankruptcy and Interest Rates
- What Is a Floating Interest Rate?
- 3 Reasons for Floating Your Interest Rate
- How the Interest Rate on an ARM Is Determined
- Tax Break Criteria for Mortgage Points
- Guidelines to Negotiating ARM Mortgage Loan Rates
- Find the Best Home Improvement Loan Rates Online
- How a Credit Card Can Help Rebuild Your Credit
- How Long Does an Inquiry Stay on Your Credit Report?
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.
A real estate short sale can be a win-win situation for everyone involved, but there are common short sale mistakes to avoid if you want to close the deal. more
Mortgages default every day in the world and they are just a normal part of the business for mortgage lenders. There are a certain number of mortgages that will default every year and it is planned for accordingly. While it is common business practice for lenders, it can be devastating for you individually. If you default on a mortgage, it can ruin your credit and your financial outlook for the future. Mortgage default is a major setback for you, but it is not the end of the road. If you are faced with a default on your home, you can take measures to get back in good standing with the lender. more
- 3 Factors that Can Negatively Affect Your Mortgage Application
- What Lenders Don't Reveal About Home Equity Loans
- Appraisal Basics
- How to Get Approved for an FHA Loan despite Bad Credit
- Short Selling a Rental Property
- Low Down Payment Loan Qualification
- Alternatives to Getting a 2nd Mortgage
- 3 Reasons Banks Reject Short Sales
- Should You Refinance? Make Sure the Timing is Right
- Second Mortgages: Advantages and Disadvantages
- FHA Loans for a First-Time Home Buyer
- Home Equity Loans for People with Bad Credit
- 3 Warning Signs of Loan Modification Scams
- FHA Eligibility with Bankruptcy and Foreclosure
The Mortgage101 Blog
American homeowners are tapping their home equity again, with the cash-out share of refinances rising to its highest rate since 2008, according to data from Black Knight Financial Services. According to its Mortgage Monitor Report, Black Knight found that 42 percent or 300,000 of all first lien refinances in the 2015 third quarter involved taking cash out of borrowers’ equity, the highest share in 8 years. On average, cash-out borrowers took out an average of $60,000, the greatest average sum since 2007. For all of 2015, there were about 1 million cash-out refinances, totaling roughly $64 billion in tapped equity, another 8-year record. Yet even though more people are feeling confident enough to pull money out of their homes again, they are still be cautious. Black Knight reported that less than 2 percent of all available equity was tapped last year, a percentage that is still below the “post-crisis norm and 80 percent below the equity pulled out during the peak housing bubble years of 2005- 2006. The average cash-out refi borrower has a very high credit score of 748 and they are still leaving a lot of equity in their homes. The average loan-to-value (LTV) ratio for borrowers after tapping their equity in 2015 was 67 percent, the lowest ratio to date. Separate data revealed that home affordability remains good by historical averages. “The data shows that it currently takes 21 percent of the median monthly household income to purchase the national median-priced home using a 30-year fixed rate mortgage,” said Black Knight Data & Analytics Senior Vice President Ben Graboske. “That’s down significantly from 33 percent back at the top of the market in 2006, and is still below the average of 26 percent we saw in the more stable years before the housing bubble.” Graboske warned that affordability could go down soon though as home prices continue to appreciate and mortgage interest rates start an upward climb. “Right now, both Hawaii and Washington D.C. are already less affordable than they were during the pre-bubble era,” he commented.” And within two years, if prices continue to grow and rate rise by at least 50 basis points, another 8 states would be less affordable than before the bubble within 12 months. There is some reason to believe home prices will not continue to appreciate at their current rate. As rates rise, many buyers will be priced out of the market unless prices make a slower climb. more