Monday, July 15, 2024

Did You Know Mortgage Facts

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Its Bad Luck To Give A Knife As A Housewarming Gift

Firm Facts â: Did You Know? | HO6 & HO3 Insurance Policies ð?

Superstition says that if you give a knife as a gift, you risk severing the friendship. The best way to give a knife as a housewarming gift is to tape a penny to the blade. This way, the recipient can take off the penny and hand it back to the giver. That way, theyre paying you for the knife, and its not technically a gift!

You Might Be Able To Refinance

One out of five mortgagors are still underwater. Until the government intervened, it was impossible for homeowners who owed more than their house was worth to refinance and get a better mortgage interest rate.

You needed a loan to value of at least 80 percent, meaning a minimum of 20 percent equity in your home.

Far too many people bought property at the peak of the housing boom with interest rates pushing 7 percent, only to watch the market crash and burn.

With the federal Home Affordable Refinance Program , if you meet specific criteria, your underwater loan may be eligible for refinancing, so that you can take advantage of lower interest rates and cut your mortgage payments.

Borrowers who are qualified will be allowed to refinance a loan that is as high as 125 percent of a home’s value.

Not every mortgage qualifies: You can’t have missed any payments in the previous 12 months and either Freddie Mac or Fannie Mae or must own the loan.

To see if they do, you can go to their websites and enter your loan details. You can find more information about HARP on the federal Making Home Affordable website.

Another program, the Federal Housing Administration Streamline Refinance, has been modified to help homeowners with loans the FHA insures.

There are far more than five mortgage facts you should know.

If you need more information, you can get free or low-cost advice from the U.S. Department of Urban Development approved counseling agencies.

Ask a Question

Foreclosures Do Us Part:

Thanks to the US mortgage crash, 2009 saw more foreclosures than it did marriages.

If you have any more questions or are looking for some mortgage advise, Coreco have the experience and expertise to help.

Give us a call on 020 7220 5110 or fill out the form below to arrange a no-obligation chat!

Your home may be repossessed if you do not keep up repayments on your mortgage.

A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances. A typical fee is £495

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Six Mortgage Facts That May Surprise You

If youre the curious type, the word mortgage may have piqued your interest at some point in your life. Maybe youre looking into the possibility of buying a home and this is the first time youve asked yourself, What does it mean? What a weird word!

Well, worry not, we have all the strange and surprising facts about mortgages right here. In one place! Sit back, sip your latte, and have a look.

Home Financing Is Becoming More Flexible

Did you know facts
  • Mortgage credit availability increased 3.9% between July and August of 2021.
  • 24% of home buyers find the mortgage application and approval process to be easier than expected.
  • The median mortgage payment in 2019 was $1,609 per month.
  • In 2020, the median down payment on a house or condo was 12%.
  • The average approved home buyer had a credit score of 735 in 2020.
  • In 2020, 96% of home buyers had their mortgage application approved.
  • 30-year mortgages had an average rate of 3.79% in Q1 2022.
  • 92% of all mortgages in 2021 were fixed-rate.
  • In 2020, 14% of home loans came from the VA.
  • The average annual rate for a 15-year mortgage was 3.02% in Q1 2022.
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    The Perspective Of The Mortgage Process Throughout History

    Mortgage history has its roots in ancient civilization. Many scholars hypothesize that debtors swore a pledge to obtain property before the advent of the mortgage. During these times, the mortgagor’ would make an agreement with a mortgagee’ to exchange property for repayment over time. The pledge became dead’ when the borrowing party could or could not meet the agreement. One of the earliest accounts of mortgage law stems from ancient India in the form of the Code of Manu, an ancient Hindu script that rejects deceptive and fraudulent mortgage practices. Critics of mortgaging lambasted the gaping holes of those who took advantage of the lending process by charging too much interest. Usurers had a special place in the seventh circle of hell, according to Dante’s Inferno. Indeed, God condemns money lending in Jewish law. According to the American Law Register , the origin of mortgage history lies in the sacred Talmudic scriptures. The Ancient Greeks and Roman civilizations simply borrowed these concepts from Judaic sources. The Romans adopted the concept of debt security by assigning the possession of property to the creditor while the debtor remains in control of it until the debt is repaid. These historical influence continued to have impact for societies who adopted money-lending practices, including the English common law that took advantage of all forms of the money-lending business.

    The American Mortgage Market During The 20th Century

    Mortgages featured variable interest rates, short maturities, and high down payments by the early 1990s. Before the Great Depression, homeowners renegotiated their mortgages every year. The modern mortgage market began to take shape after the federal government intervened during the Great Depression. This intervention resulted in the formation of the Federal Housing Administration, the Federal National Mortgage Association, and the Home Owner’s Loan Corporation. The Great Depression caused property values to plummet, which destabilized the mortgage market. Homeowners defaulted on their loans when holders refused to refinance their mortgage. Roughly 1/10th of all homes faced foreclosure, leading to the constant pressure for holders to resell repossessed property. Lending institutions survived by providing government-sponsored bonds to reinstate mortgages in default. It enabled the extension of terms and fixed rates to create self-amortizing loans. Other efforts were made to increase investing confidence in order to stabilize mortgages in poorer areas.

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    Your Assets Are Less Valuable Than You Think

    Its great that you might have a nice sized savings account but Lenders want to make sure you can still make all your monthly mortgage payments. No matter how odd it might seem, theres never a guarantee that you wont randomly go spend all your savings. You need to show that you still have enough incoming cash to keep paying your bills.

    More Than Half Of All Mortgage Loans Are Conventional Loans

    CARES Act Mortgage Forbearance: What You Need to Know â consumerfinance.gov

    Conventional loans are often referred to as because they meet the guidelines set by Freddie Mac and Fannie Mae. Conventional loans tend to be good options for the average homebuyer because they offer the choice of fixed rates, , loan term options from 10-30 years, and relatively flexible credit requirements. Plus, you can eliminate with 20% down.

    Read Also: How To Determine Mortgage Approval Amount

    Things Facts About Mortgages That Will Impress Your Friends

    Over the course of my career in finance and in writing about mortgages, Ive found that one good way to make conversation is to reveal little-known facts about mortgages to my friends and family. Mortgage facts tend to wow people because while most people end up getting a mortgage at some time or another, many dont really take the time to think about where the idea came from. Here are a few facts about mortgages you can use to impress your friends at your next social gathering.

    How Much Should I Save To Get A Mortgage

    The simple answer is to save as much as you can comfortably afford and contribute to your down payment savings. The exact amount for your mortgage varies depending on your mortgage loan and lender requirements for approval.

    USDA and VA loans have no down payment requirements, but your lender may have requirements for your approval. You may also want to save a larger down payment to lower your interest rates. Otherwise, you can secure a loan for 3-5 percent down and seek out down payment assistance.

    You should also consider closing costs, moving costs, and other purchases that may come up once you buy your home. Its a good idea to have extra savings in case of an emergency or home repair and maintenance, too.

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    We Really Dont Build Them Like They Used To

    Castles remain some of the most expensive real estate in the world, and the most famous ones would cost a staggering amount to recreate today. For example, the Palace of Versailles outside of Paris would cost an estimated $200 billion to $300 billion in todays U.S. dollars. Biltmore Estate in Asheville, North Carolina, would cost $157.2 million, and Hearst Castle in California would be $750 million to build.

    Its Illegal To Keep An Alligator In Your Tub In Arkansas

    Reverse mortgage misconceptions that you should know about before you ...

    Legislators seem to really want to restrict what homeowners can do with their bathrooms. Of course, every state has strange, inexplicable laws still on the books, but did you know its illegal to have a donkey in your bathtub in Brooklyn or to keep a gator in your tub in Arkansas? And forget about keeping your horse in a bathtub in South Carolina.

    Youd be surprised to learn you cant bathe after 10 p.m. in Piqua, Ohio, and you must be fully clothed to take a bath in Portland, Oregon.

    At least in most places, you can have a bathtub in your house. Its technically still illegal in Virginia.

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    No Credit Score No Bueno

    While its not in your best interest to have a low credit score, it may be even less ideal to have no credit score. Though many frugal-minded people like to pay cash for purchases and prevent themselves from overspending , having no record of paying your bills on time makes it difficult for a lender to see that you pay your debts. This credit history is provided to them in the form of a credit report. It allows possible mortgage lenders to determine that youll take the loan seriously and work hard to pay back the loan.

    People Celebrate Their Last Mortgage Payment In Bizarre Ways

    In Scotland, homeowners paint their front door red to signify that theyve paid off their mortgage. In the U.S., homeowners sometimes burn their last bill in mortgage burning parties, a practice made famous back when Archie Bunker lit his mortgage note on fire in an episode of All in the Family. Hey, if youve managed to pay off your mortgage, you should definitely celebrate however you see fit!

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    Many Homes In Rural Areas Small Towns And Even The Suburbs Are Eligible For Usda Loans

    Many people think USDA loans are just for farmers, because theyre backed by the U.S. Department of Agriculture. However, the program has been expanded in recent years to help families purchase homes in rural and suburban areas. This loan program is awesome because there is no down payment requirement, it often offers better terms than FHA or conventional loans, and the minimum credit score requirement is 620.

    Mortgage Denial And Acceptance Rates

    Reverse Mortgages: Know Before You Owe â consumerfinance.gov

    In addition to mortgage rates, we wanted to look into mortgage denials and acceptances as well as average loan sizes and credit scores. See some stats and charts below.

  • The denial rate for refinance loans decreased between 2019 and 2020 by 13.2%, compared with a 22.2% decrease for home purchase loans.
  • The table below shows the breakdown of mortgage application denials by race as recorded by the 2017 FFIEC Home Mortgage Disclosure Act.
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    Student Loans Can Be Excluded From Your Debt Ratio

    It never ceased to amaze me, but if a borrowers student loans are deferred, they can be excluded from the debt ratio. The thinking here is that if your loans are deferred, then youre a recent college graduate and you should be landing a new job with a decent income.

    However, clearly thats never a guarantee! Everyone has heard stories of people who have bachelors and masters degrees: really smart, over-qualified people, who are flipping burgers at a fast food joint. I would never want to finance a house in the hopes Ill be landing a better paying job soon.

    Russia Sold Alaska To The Us For $02 Per Acre

    The United States bought the 375 million acres we now call Alaska from Russia in 1876 for $7.2 million, or about $126.5 million in todays market. Though the Alaska Purchase Treaty certainly provided some upside to Russia at the time, the U.S. has come out a huge financial winner in the deal thanks to the massive oil deposits discovered in the 49th state in 1967.

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    9 Interesting Facts About Mortgages

    Robin James

    Ok mortgages might not be amongst some of the most fascinating topics out there, but they are an essential part of millions of daily lives. In fact, signing up for a mortgage is likely to be one of the biggest and most important parts of your modern life. Not everyone takes on a mortgage, but to be able to feasibly own a home and to run it while living on a standard wage in the UK, you are going to need to take the time to pay off the cost of a house over a set period.

    But what are some fun facts about mortgages you might not be aware of? Before you start signing anything on the dotted line, make sure to read our fact file below for the full breakdown.

    What Type Of Mortgage Should I Choose

    Did You Know? ð¡ â?ï¸?Older borrowers are eligible to get loans that will ...

    Your mortgage choice depends on your location, home type, and financial health and history. Here are common loan types and their requirements:

    Conventional loans require:

    Jumbo loans require:

    • May require a down payment between 5 percent and 25 percent depending on credit and income
    • More challenging to be approved for due to higher loan amounts.

    Different mortgages and lenders have separate requirements for approval, like mortgage insurance. Consult with your lender to determine the best mortgage loan for you.

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    Important Reverse Mortgage Facts You Should Know

    If youre 62 or older and need financial assistance to supplement your income, or pay for healthcare, a reverse mortgage might be the right solution. It allows you to convert part of your homes equity into cash without having to sell your home or pay additional monthly bills. However, it can be not very easy if you cant understand the basics. Hence it is crucial to comprehend- A. What is a reverse mortgage? and B. How can it benefit you? Read on to learn about the critical reverse mortgage facts, how the whole thing works and if you are eligible.

    1. There Are Different Types of Reverse Mortgages

    Learning about this financial solutions primary types should be a priority among the many reverse mortgage facts you discover. The different types are:

    • Single-Purpose Reverse Mortgage This type is usually offered by local, state, and non-profit agencies. It is essential to utilize the proceeds for a state-specific purpose.
    • Home Equity Conversion Mortgage HECM is a federally insured option that requires a pre-approval counseling session.
    • Proprietary Reverse MortgageAvailable to those who have high-value homes, this type of Reverse Mortgage is not insured by the government.

    2. There are Different Ways to Receive Your Proceeds

    The various ways of receiving the payout are another among the top facts about reverse mortgage loans.

    3. The Eligibility Criteria

    You are required to:

    4. There are Expenses You will have to Continue Paying

    6. You Must Meet With an FHA-Approved Counselor

    Underwriters Dont Care About Your Assets

    While underwriters do want to see that you have enough money to cover your down payment, they typically dont care how much money you have in the bank.

    Theres a spot on a mortgage application for you to list your cars and other assets, but it really doesnt matter to an underwriter because those things arent collateral for the mortgage.

    The thing that matters the most is your income. What I mean by that is this: lets say you have one million dollars in the bank, but you only make $10 an hour. You want to finance a $300,000 home. Even if you have enough money in the bank to cover the loan, you arent going to get that mortgage if you dont qualify for it on your income. Your debt-to-income ratio is of the utmost importance.

    Newsflash: the lender doesnt care if you have 17 paid for Lamborghinis in your garage, or 10 paid for houses for that matter. They worry about your income more than your non-liquid assets.

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    What Our Customers Are Saying About First Federal Bank

    I can highly recommend First Federal Bank when looking for a mortgage. They are professionals and very efficient. First Federal Bank made the entire process very easy. I appreciate everything they did. They were able to shop the mortgage for me to get very desirable rates and conditions. First Federal Bank contacted me everyday about the status of the loan requests and apprised me of the changing closing costs as they occurred. There we no surprises at closing, which they handled very well. I got a great deal and excellent rates using First Federal Bank for my mortgage.

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