Industry News

Poll shows increase in popularity of some ‘creative’ mortgages

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

An increasing number of mortgage holders have "creative" financing, but the number of people buying homes above their price range appears to be declining, according to a new poll. The poll, conducted at the end of August by Harris Interactive for the Wall Street Journal Online, also found that mortgage brokers still have an edge over direct lenders, with 42 percent of respondents using a broker and 28 percent going direct for home loans. Of the 2,790 people polled, 38 percent of those with a mortgage said they have a "creative" or payment-option loan, up 5 percent from a similar poll last year. Creative mortgages were defined as interest-only, piggyback, payment option or "miss-a-payment" plans. While 14 percent of mortgage holders who reported having interest-only loans, that's down from 17 percent of those polled last year. Homeowners with incomes of $75,000 a year or more were almost three times as likely as households with less than $35,000 a year to hold interest-only loans. A g...