When it comes to buying a house, taking a mortgage loan is one of the most common ways to finance it. Mortgage lenders and administrators are the financial institutions that provide these loans and manage the repayment process. Understanding the statistics related to mortgage lenders and administrators can give you a better idea of the mortgage market and help you make informed decisions.
Overview of Mortgage Lending in the United States
In the United States, mortgage lending is a multi-billion dollar industry that has grown significantly over the past few years. According to data from the Mortgage Bankers Association, the total mortgage debt outstanding in the country was $10.4 trillion in 2020. This shows an increase of 3.8% compared to the previous year.
Furthermore, the MBA’s Weekly Mortgage Applications Survey shows that the total number of mortgage applications increased by 4.1% in the week ending 2nd July 2021, compared to the previous week. This indicates that the demand for mortgage loans is still high despite the COVID-19 pandemic.
Types of Mortgage Lenders and Administrators
There are various types of mortgage lenders and administrators that provide mortgage loans. These include:
- Commercial banks
- Credit unions
- Mortgage companies
- Mortgage brokers
- Online lenders
Each type of lender has its own advantages and disadvantages, and it’s important to choose the one that meets your specific needs.
Market Share of Mortgage Lenders
The market share of mortgage lenders can give you an idea of which lenders are the most popular among borrowers. According to data from the MBA, the top five mortgage lenders in the United States in 2020 were:
- Wells Fargo
- Chase
- Quicken Loans
- Bank of America
- United Wholesale Mortgage
These lenders accounted for a total of 43.3% of the mortgage market in the country.
Interest Rates for Mortgage Loans
Interest rates for mortgage loans can vary depending on the lender, the type of loan, and the borrower’s credit score. According to data from Freddie Mac, the average interest rate for a 30-year fixed-rate mortgage in the United States was 2.78% in June 2021. This shows a slight decrease compared to the previous month.
It’s important to shop around and compare interest rates from different lenders to get the best deal on your mortgage loan.
Mortgage Loan Delinquency Rates
Mortgage loan delinquency rates refer to the percentage of borrowers who are behind on their mortgage payments. According to data from the MBA, the delinquency rate for mortgage loans in the United States was 6.38% in the first quarter of 2021. This shows a decrease compared to the previous quarter.
It’s important to make your mortgage payments on time to avoid delinquency and foreclosure.
Foreclosure Rates for Mortgage Loans
Foreclosure rates for mortgage loans refer to the percentage of homes that are in the process of being foreclosed due to non-payment of the mortgage loan. According to data from ATTOM Data Solutions, the foreclosure rate in the United States was 0.12% in May 2021. This shows a decrease compared to the previous year.
It’s important to communicate with your lender if you’re having trouble making your mortgage payments to avoid foreclosure.
Conclusion
Understanding the statistics related to mortgage lenders and administrators can help you make informed decisions when it comes to buying a house and taking a mortgage loan. By considering factors such as interest rates, delinquency rates, and foreclosure rates, you can choose the right lender and loan for your specific needs.