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Since 2003, Dan Green has been a leading mortgage lender and respected industry authority. His unwavering commitment to first-time home buyers and home buyer education has established him as a trusted voice among his colleagues, his peers, and the media. Dan founded Homebuyer.com to expand the American Dream of Homeownership to all who want it. Read more about Dan Green.
Homebuyer.com is your trusted guide to homeownership. Since 2003, our team has offered real-world expertise and advice to tens of millions of U.S. home buyers. Our content stands on its integrity: it's factual, unbiased, and free from outside influences. Read more about our governing editorial guidelines.
We also exist for profit and want our readers to understand how we make money.
Homebuyer.com is a mortgage-company-affiliated publisher. We earn compensation when you click specific links on the website, or apply for a mortgage with Homebuyer.com or partner listed in our comparison tables. Our partners compensate us differently, so we randomize our tables to protect our readers from steering. We may also earn compensation for advertisements on the site, which are indicated clearly. Note that limitations in our software, whether we originate mortgages in your area, and credit factors may affect the offers and comparison tables you see on various parts of this site. We do not include offers for every mortgage product available. Someday, we hope we will.
Your trust matters to us. This article was thoroughly checked for accuracy as of November 7, 2023. Homebuyer.com ensures every piece of information we share reflects the latest in mortgage standards. Learn more about our commitments to our reader in our editorial guidelines.
Homebuyer was created with a mission to make homeownership more accessible and inclusive for every American. We strive to strengthen neighborhoods through a simple, fast, and better homebuying experience.
Mortgage rates, home prices, and the housing market as a whole are always fluctuating. Financial factors, such as the Fed, impact mortgage rates. Other times, it can be external factors, such as the global pandemic. For first-time buyers, it can be time-intensive to get all of the information needed and feel ready to start the home-buying process.
These mortgage facts and home buyer statistics will help you learn about home-buying and avoid first-time buyer mistakes.
Key Takeaways:
There are a number of different mortgages available for home buyers depending on the loan type or property you’re interested in, your financial health, and your location. Mortgages are large loans with a significant amount of money changing hands, so there’s a lot to know.
Here are some mortgage facts to familiarize yourself with home loans:
“Between January 1992 and December 2020, the average difference between 30-year fixed rate mortgage rates and 15-year fixed-rate mortgage rates was 0.546 percentage points.” (Freddie Mac, 2021)
“Over the last 25 years, while mortgage rates halved, home prices tripled. Homeowners pay less to live in their home each month, but they pay to make a down payment.
The good news is: you’re allowed to make a small down payment. The typical first-time home buyer makes a down payment of 7%.”
Year | Mortgage Rate | Estimated Monthly Payment* |
2020 | 2.60 | $3,069.53 |
2019 | 3.39 | $3,140.88 |
2018 | 2.01 | $2,813.39 |
2017 | 1.82 | $2,733.79 |
2016 | 2.93 | $2,889.05 |
2015 | 3.09 | $2,800.62 |
2014 | 3.29 | $2,794.44 |
2013 | 3.10 | $2,562.02 |
2012 | 2.93 | $2,301.47 |
2011 | 3.68 | $2,274.52 |
Year | Mortgage Rate | Estimated Monthly Payment* |
2020 | 3.11 | $1,665.78 |
2019 | 3.94 | $1,801.29 |
2018 | 4.54 | $1,453.39 |
2017 | 3.99 | $1,387.54 |
2016 | 3.65 | $1,606.55 |
2015 | 3.85 | $1,574.79 |
2014 | 4.17 | $1,592.36 |
2013 | 3.98 | $1,441.60 |
2012 | 3.66 | $1,279.81 |
2011 | 4.45 | $1,327.86 |
*Estimated monthly mortgage payment is based on median new home construction sale price data from the U.S. Census Bureau.
“In 2020, there were 2.38 million first-time home buyers. The most in history.”
(Genworth, 2020)
Buying your first home is an exciting milestone that provides new experiences, opportunities, and lessons in life. Check out these facts about home-buying for a better expectation of the process.
“When you’re a first-time home buyer, it always feels like sellers are in control because sellers stay less emotional. They know if you don’t buy the home, somebody else will.”
Everyone can be a homeowner with the right education, careful planning, and a home-buying team. Home buyers choose to own their home for a number of reasons: financial investment and security, comfort and privacy, and the flexibility of owning property.
Here’s a snapshot of U.S. home buyers and their motivations to become homeowners.
“West Virginia has the highest rate of homeownership at 74%.” (Urban Institute, 2021)
“The biggest drivers for first-time buyers are The 5 Ds – Diamonds, Diapers, Diplomas, Dogs, and the Daily Grind. When renters get married, have babies, graduate, get a pet, or start a new job, they want to own a home.”
You have mortgage questions, and we have expert answers. Read up on these frequently asked questions.
Conventional mortgage loans are the most common and typically require a 620 minimum credit score. Of course, credit score minimums vary among lenders and mortgage loan types.
Many lenders offer FHA and VA loans to buyers with a 580 or higher credit score. FHA loans don’t technically have a credit score requirement, but most lenders want a score of 580 or better to approve your loan.
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. It’s a good idea to have extra savings in case of an emergency or home repair and maintenance, too.
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:
FHA loans require:
VA loans require:
USDA loans require:
Jumbo loans require:
Different mortgages and lenders have separate requirements for approval, like mortgage insurance. Consult with your lender to determine the best mortgage loan for you.
There are five types of mortgage loans available to Americans, with conventional mortgages being the most common. While there isn’t an exact number of mortgages in the U.S., 64 percent of Americans are homeowners with a combined total of $10.04 trillion in mortgage debt.
Buying a home is an exciting venture that can benefit your financial and emotional well-being. It also requires some extra education on the home-buying process and the current real estate industry. Read up on your mortgage terminology and get pre-approved before you start house hunting.
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Mortgage Rate Assumptions
The Homebuyer.com mortgage rates shown on this page are based on assumptions about you, your home, and the state where you plan to purchase. The rate shown is accurate as of , but please remember that mortgage rates change without notice based on mortgage bond market activity.
The Homebuyer.com mortgage rates shown on this page are based on assumptions about you, your home, and the state where you plan to purchase. The rate shown is accurate as of {{ formatDate(rates[0].createdAt) }}, but please remember that mortgage rates change without notice based on mortgage bond market activity.
Our mortgage rate assumptions may differ from those made by the other mortgage lenders in the comparison table. Your actual mortgage rate, APR, points, and monthly payment are unlikely to match the table above unless you match the description below:
You are a first-time buyer purchasing a single-family home to be your primary residence in any state other than New York, Hawaii, and Alaska. You have a credit score of 660 or higher. You are making a down payment of twenty percent and using a 30-year conventional fixed-rate mortgage. You earn a low-to-moderate household income relative to your area.
The information provided is for informational purposes only and should not be confused for a mortgage rate commitment or a mortgage loan approval.
Legal Disclosures
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