|
|
Plan ahead for home
ownership. Because, as shown in the charts below, sometimes
you aren't as prepared as you think you are.
Mortgage
Delinquency Rates: 1980 to 2000
Mortgage Foreclosure Rates: 1980 to
2000
Order
Your Calculator Now!
|
Take a look at
what's in store for new home buyers. Here are some
trends in Conventional First Mortgages between 1990
and 2000.
New
homes: Prices are up, buyers are
borrowing more, and borrowing for a longer
time.
|
- Home
purchase prices rose over 52%, about 4.3% per
year, with an 11.5% jump from 1999 to 2000.
- As down
payments get smaller, more and more of the
purchase price is covered by the mortgage; loan
to price ratios have edged up 2.5% to 77.4% in
2000.
- Average
term to maturity in 2000 was 29.2 years, up
nearly two years since 1990.
|
|
Pre-existing
homes: Not much different here.
|
- Prices
are up over 36%, about 3.2% per year.
- Loan to
price ratios are up 3.0% to 77.9%.
- Term to
maturity is up 1.6 years to 28.6 years.
|
|
So, for
first time buyers, prices are shooting up while
interest rates are falling slowly at 0.2% per year.
In addition, people are borrowing over 75% of the
price of their home while the length of their
mortgages have increased about as high as it can go
for what is typically a 30 year obligation.
|
- Maybe
you will buy now and take advantage of record
low interest rates?
- Maybe
you will wait and see if interest rates rise and
discourage large numbers of potential buyers?
Maybe this will result in lower selling prices
over time?
- Either way,
make plans to be ready for your next
home!
|
Order
Your Calculator Now!
Information based on
data from the U.S. Census Bureau. Characteristics of Conventional First Mortgage
Loans for Purchase of Single Family Homes: 1990 to 2000,
Table 1185; Mortgage Delinquency and Foreclosure Rates: 1980
to 2000, Table 1187.
Statistical Abstract of the United States, 2001
|
Disclaimer - Not Providing Accounting or Financial Services
- Proactive
Management, Inc. presents the material on this calculator as
general information only. It is not offered as, and does not
constitute, accounting advice or opinion, or financial
advice or opinion. It should not serve as a substitute for
advice from an accountant or financial advisor familiar with
the facts of your specific situation. We are not an
accounting or financial services firm and do not provide
accounting, financial, or tax services or advice. We make no
warranty, express or implied, concerning the accuracy or
reliability of the content on this spreadsheet, on our
website or on other websites to which we link.
|
