The Changing Mortgage Market


The Changing Mortgage Market
By Scott Rogers • November 2, 2007
Over the last decade, many flexible financing solutions have been introduced: 100% mortgages with private mortgage insurance to cover the lender’s risk . . . 80/20 mortgages with a second mortgage covering the 20% down payment . . . adjustable rate mortgages to provide lower interest rates and payments . . . interest only mortgages to lower monthly payments even further . . . step-up mortgages with lower introductory rates . . . sub-prime mortgages for poor credit or high risk borrowers. This loosening of lending standards has led to an increase in mortgage delinquencies, and as indicated by the graph above, most of this increase has been with subprime borrowers. However, these recent changes in the mortgage market affect all borrowers: fewer programs, for example the disappearance (largely) of 80/20 loans . . . increased standards such as credit scores, cash reserves, debt limits . . . increased scrutiny in the underwriting process, delaying closings . . . Understanding these trends in the mortgage market will help you to make more educated decisions about when to buy, and how to fi nance your purchase. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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