Mortgage Facts

Mortgage Facts. USA Today has 13 mortgage facts that might surprise youSelena Maranjian, The Motley Fool

Nebraska is the rated highest among states for housing affordability. Vermont offers a good employment landscape for under-35 home buyers. Newslook

These nuggets of knowledge are not only interesting, but they can save you many thousands of dollars, too, when it comes to getting or paying off a mortgage.

“[I]f he doth not pay, then the Land which is put in pledge upon condition for the payment of the money, is taken from him for ever, and so dead to him upon condition, &c. And if he doth pay the money, then the pledge is dead as to the Tenant.”

– Edward Coke’s Commentaries on the Laws of England.

There’s a good chance that you have engaged in a “dead pledge.” That’s the literal translation, from Old French, of the word “mortgage” – as mortgages were seen as often lasting until death. Here are 12 more mortgage facts that might surprise you.

The lowest mortgage interest rate was really low: In late 2012, average interest rates for a 30-year fixed-rate mortgage hit 3.31%. Rates for 15-year loans sank below 3%. (Clearly, our recent rates near 4.3% are still quite low, historically speaking.)

The highest mortgage interest rate was really high: In late 1981, the average interest rate for a 30-year fixed-rate loan hit 18.45%! To appreciate what a difference your home loan’s interest rate makes, check out the table below for monthly payments on a $200,000 30-year fixed-rate loan for a $250,000 home: continue reading