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 newsTweets 

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
02/24 GET RICH QUICK : Decorating With Jewel Tones
02/24 ZILLOW : Home Buyers Say Rising Interest Rates are Top Concern
02/24 ZILLOW : Manhattan and Brooklyn Rental Markets Continue to Cool
02/23 ZILLOW : Winter Weatherproofing Ideas That Take Just Minutes
02/23 ZILLOW : Fastest Appreciating Housing Markets Are in the South
02/21 30-Year Fixed Mortgage Rates Unchanged; Current Rate is 3.93%, According to Z..
02/21 STREETEASY : Joins Premier Agent
02/18 ZILLOW : Sleepless in SoHo? Meg Ryan's Loft Awaits
02/17 ZILLOW : 10 Ways to Make Sure You Get Your Security Deposit Back
02/16 ZILLOW : Mortgage Payments Take Up Biggest Share of Income since 2010
More news
Sector news : Real Estate Services - NEC
02/23 Britain's Intu Properties hikes full-year dividend
02/10 News Corp's adjusted profit edges past analysts estimates
01/31DJCBRE : Correction to Story About Property Demand in Italy
01/31DJCBRE : Italy Takes Unlikely Turn as Real Estate Hot Spot
2016 ALLIANZ : International Campus launches 1 billion euro student housing fund
More sector news : Real Estate Services - NEC
Advertisement
Financials ($)
Sales 2017 1 048 M
EBIT 2017 103 M
Net income 2017 -22,8 M
Finance 2017 183 M
Yield 2017 -
P/E ratio 2017 -
P/E ratio 2018 176,92
EV / Sales 2017 5,89x
EV / Sales 2018 4,56x
Capitalization 6 352 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 38,8 $
Spread / Average Target 12%
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%6 352
CBRE GROUP INC13.37%11 896
COSTAR GROUP INC6.99%6 562
ZILLOW GROUP INC-4.53%6 352
REA GROUP LIMITED1.12%5 646
JONES LANG LASALLE INC14.43%5 151
More Results