Nonprime mortgage loans - facts and statistics
[Excerpt from National Home Equity Mortage Association (www.nhema.org) on nonprime mortgage loans]
What Is a NonPrime Mortgage Loan?
Nonprime, or non-conforming, mortgage loans are loans made to borrowers who, for any reason, cannot qualify for a prime loan. Reasons might include income, employment history, loan size, past credit problems or other factors. Without nonprime lenders, many of these people would have no access to mainstream credit markets at all.
* Annual nonprime home equity loan originations exceed $600 billion.
* The average interest rate on a nonprime home equity loan in 2004 was just 7.65%. * The average loan-to-value ratio for a nonprime loan is 81%, compared to 76% for a conventional purchase mortgage.
* The average nonprime mortgage loan is $130,000.
Who Benefits from NonPrime Lending?
Millions of American homeowners from all 50 states and all walks of life use nonprime home equity loans to invest in building a better life – consolidating debts, financing education, making home improvements, and much more.
* Over 6 million homeowners hold nonprime mortgage loans.
* The average nonprime mortgage borrower earns $54,165 a year.
* Between 30% and 50% of all Americans are classified as nonprime borrowers.
* The average nonprime borrower had a 638 FICO (Fair, Isaac & Co.) credit score in 2004, an increase from 607 in 2001.
posted at 12:11 AM
What Is a NonPrime Mortgage Loan?
Nonprime, or non-conforming, mortgage loans are loans made to borrowers who, for any reason, cannot qualify for a prime loan. Reasons might include income, employment history, loan size, past credit problems or other factors. Without nonprime lenders, many of these people would have no access to mainstream credit markets at all.
* Annual nonprime home equity loan originations exceed $600 billion.
* The average interest rate on a nonprime home equity loan in 2004 was just 7.65%. * The average loan-to-value ratio for a nonprime loan is 81%, compared to 76% for a conventional purchase mortgage.
* The average nonprime mortgage loan is $130,000.
Who Benefits from NonPrime Lending?
Millions of American homeowners from all 50 states and all walks of life use nonprime home equity loans to invest in building a better life – consolidating debts, financing education, making home improvements, and much more.
* Over 6 million homeowners hold nonprime mortgage loans.
* The average nonprime mortgage borrower earns $54,165 a year.
* Between 30% and 50% of all Americans are classified as nonprime borrowers.
* The average nonprime borrower had a 638 FICO (Fair, Isaac & Co.) credit score in 2004, an increase from 607 in 2001.
posted at 12:11 AM
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