There are many people across the world with mortgages. But few know about the various interesting facts, such as how mortgages came to be, and so on.
1. First Use of the Word Mortgage
The first time the term “mortgage” was used was back in the 1300s. When Confessio Amantis first used this word, it didn’t have anything to do with homeownership. He used it to refer to marriage in the poem he wrote!
2. Red Doors in Scotland
One fun way citizens of Scotland show they have paid off their mortgage is by painting their home’s front door red. So, next time you’re in Scotland, and you see homes with a red front door, you’ll know they are mortgage-free! We think this is a cool way to show how proud you are to be a full-fledged homeowner
3. The Most Common Payment Method for Buying a House
Nine out of ten homebuyers use a mortgage to purchase their home. On average, homebuyers will put down around 10% on their home and the remaining 90% will come from the lender. So if you’re taking out a mortgage on your home, you are certainly not alone!
4. A Mortgage Cost Can Be More Than the Value of a Home
In the United States, the contract can be up to 97 percent of the home’s value , although you can also get a mortgage for the full amount. Over in the UK, residents can borrow up to 110% of the value of the home. In the Netherlands, they can borrow up to 115%!
5. Lenders Care More About Your Income Than Your Assets
While it’s popular to believe that what you have in your savings account will be top priority to your lender, they actually care more about your income. More specifically, we as lenders look at your debt-to-income ratio. This allows your lender to see how likely you will be able to make your monthly payments. To qualify for a home loan, your debt-to-income ratio should be 43% or lower.
If you’re ready to get started with Team Crescenzo, or if you have any questions, contact us today!