Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nasdaq  >  Zillow Inc    Z

SummaryChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Zillow Inc : Mortgage Availability Remains Tight: 3 of 10 Americans Unlikely to Qualify for a Mortgage

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/26/2013 | 02:44pm CET
Borrowers with a credit score of at least 740 should expect the best rates, According to Zillow® Mortgage Marketplace Analysis

SEATTLE, Sept. 26, 2013/PRNewswire/ -- Despite a healing housing and mortgage market, three out of 10 Americans remain unlikely to qualify for a mortgage, according to a Zillow® Mortgage Marketplace analysis.

The research analyzed 13 million loan quotes and more than 225,000 purchase loan requests on Zillow Mortgage Marketplace in September 2013, and compared it to a similar study conducted in September 2010.

Borrowers with credit scores under 620 who requested purchase loan quotes for 30-year fixed, conventional loans were unlikely to receive even one loan quote[1] in September 2013, unchanged from three years ago, even if they offered a relatively high down payment of 15 to 25 percent. Nearly 3 out of 10 Americans, or 28.4 percent, have a credit score of 620 or lower, according to data provided by myFICO.com.

Meanwhile, the bar has risen for borrowers to get the lowest available mortgage rates. The best mortgage rates are typically reserved for those with credit scores of 740 or higher, compared with 720 in 2010. According to myFICO.com, 40.3 percent of Americans currently fall into this category. In 2010, 47 percent of Americans had credit scores over 720 and were able to get the best rates. Borrowers with credit scores above 740 did not receive significantly better mortgage rates.

In the 2013 study, borrowers with credit scores of 740 or above got an average low annual percentage rate (APR) of 4.42 percent for conventional 30-year fixed mortgages. Borrowers with mid-range credit scores between 620 and 739 received APRs, on average, between 5.09 and 4.47 percent, with the APR rising as the credit score drops. Those with credit scores below 620 received too few loan quotes to calculate the average low APR.

"Despite all-time high levels of affordability in the housing market, tightened lending standards mean that nearly one-third of Americans are unlikely to be able to achieve the American Dream of homeownership because they can't qualify for a mortgage due to a low credit score," said Erin Lantz, director of mortgages at Zillow. "Your credit score is the single most important factor in determining your mortgage interest rate and monthly payment. To avoid any surprises when buying a home, check your credit score and report at least six months before you intend to buy to see if there are any costly inaccuracies, pay down high-balance lines of credit and make sure your bills are always paid on time."

Zillow Mortgage Marketplace received nearly 17 million loan requests in the past year from borrowers, who can anonymously request mortgage quotes from hundreds of lenders across the country. Lenders then submit loan quotes customized to each borrower's financial situation. This analysis looked at the number of quotes and the average lowest APR for 30-year fixed, conventional mortgages that were quoted to borrowers who intended to purchase a home with down payments between 15 and 25 percent, along with credit score information from myFICO.com.  The analysis took into account more than 13 million quotes submitted between Sept. 1, 2013and Sept. 15, 2013.

Credit Score

Percent of Americans

in this category

Average Annual

Percentage Rate

(APR)

<>

28.4%

N/A[2]

620-639

4.0%

5.09%

640-659

4.4%

4.92%

660-679

4.5%

4.82%

680-699

5.4%

4.69%

700-719

6.7%

4.56%

720-739

6.4%

4.47%

>740

40.3%

4.42%

About Zillow, Inc.
Zillow, Inc. (NASDAQ: Z) operates the leading real estate and home-related marketplaces on mobile and the Web, with a complementary portfolio of brands and products that help people find vital information about homes, and connect with the best local professionals. Zillow's brands serve the full life cycle of owning and living in a home: buying, selling, renting, financing, remodeling and more. In addition, Zillow offers a suite of tools and services to help local real estate, mortgage, rental and home improvement professionals manage and market their businesses. Welcoming nearly 64 million monthly unique users in August 2013, the Zillow, Inc. portfolio includes Zillow.com®, Zillow Mobile, Zillow Mortgage Marketplace, Zillow Rentals, Zillow Digs™, Postlets®, Diverse Solutions®, Agentfolio™, Mortech®, HotPads™ and StreetEasy®. The company is headquartered in Seattle.

Zillow.com, Zillow, Postlets, Diverse Solutions, Mortech and StreetEasy are registered trademarks of Zillow, Inc. Agentfolio, HotPads and Digs are trademarks of Zillow, Inc.

[1] This analysis looked at mortgage requests and quotes on Zillow Mortgage Marketplace between Sept. 1, 2013and Sept. 15, 2013and was filtered to only include quotes for conventional 30-year purchase loans where borrowers offered down payments of 15 to 25 percent.

[2] Borrowers with credit scores of 619 or below receive too few loan quotes to be statistically significant and to calculate an average low APR.

SOURCE Zillow, Inc.

distributed by
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on ZILLOW INC
12/09 DIY : Turn a Dresser Into a Double-Duty Entertainment Center
12/07 ZILLOW : Signs White House Equal Pay Pledge
12/07 CHECKLIST : Everybody You Need to Notify When You're Moving
12/07 Zillow Group Prices Offering of $400 Million of 2.00% Convertible Senior Note..
12/06 30-Year Fixed Mortgage Rates Rise, Edge Closer to 4 Percent; Current Rate is ..
12/06 ZILLOW : 'Full House' Creator Buys (and Plans Slumber Party at) Home From Series
12/06 EXPERTS : Short-Term Home Rentals Have Little to No Impact on Housing Affordabil..
12/06 ZILLOW : 5 Common Mistakes Newbie Flippers Make
12/05 Zillow Group Announces Proposed Offering of $400 Million of Convertible Senio..
12/02 ZILLOW : 2-Bedroom Rentals for Less Than $2,000
More news
Sector news : Real Estate Services - NEC
11/03 British Land to sell stake in London's 'Cheesegrater' - source
10/20 London builders turn to funds as property prices drop
09/02 Segro bucks Brexit property blues with warehouse fund-raising
07/18 CBRE : Wells Fargo agrees City of London office buy, shrugs off Brexit fear
07/12DJCorrection to Mall Owners Article
More sector news : Real Estate Services - NEC
Advertisement
Financials ($)
Sales 2016 842 M
EBIT 2016 -129 M
Net income 2016 -202 M
Finance 2016 105 M
Yield 2016 -
P/E ratio 2016 -
P/E ratio 2017
EV / Sales 2016 7,85x
EV / Sales 2017 6,21x
Capitalization 6 714 M
More Financials
Chart ZILLOW INC
Duration : Period :
Zillow Inc Technical Analysis Chart | Z | US98954A1079 | 4-Traders
Full-screen chart
Income Statement Evolution
More Financials
Consensus 
Mean consensus OUTPERFORM
Number of Analysts 19
Average target price 39,3 $
Spread / Average Target 5,2%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Spencer M. Rascoff Chief Executive Officer & Class I Director
Lloyd D. Frink Vice Chairman & President
Richard N. Barton Executive Chairman
Amy C. Bohutinsky Chief Operating Officer
Kathleen Philips CFO, Secretary, Treasurer & Chief Legal Officer
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
ZILLOW INC18.51%6 714
CBRE GROUP INC-4.74%11 059
ZILLOW GROUP INC43.28%6 714
COSTAR GROUP INC-7.15%6 255
REA GROUP LIMITED-5.23%5 121
JONES LANG LASALLE INC-33.68%4 793
More Results