By Brian Honea
Risk layering is largely responsible for the increase in risk on mortgage loans taken out by first-time buyers, according to AEI. Seventy percent of first-time mortgage buyers in April 2015 had a combined LTV ratio of 95 percent or more and 97 percent of them had a 30-year term. Without substantial home price appreciation, the low down payment and slow amortization makes it likely that these first-time buyers will have very little equity in their homes for many years.
The post Agency First-Time Buyer Index Shows Mortgage Loans Are Becoming Riskier appeared first on DSNews.
Via:: Agency First-Time Buyer Index Shows Mortgage Loans Are Becoming Riskier
Share this article
