Mortgage delinquency rate fell in second quarter 2011

November 07th, 2011

Fewer borrowers were behind on mortgage loan payments in the second quarter of 2011, compared with a year earlier, according to TransUnion. The national mortgage delinquency rate fell to 5.82 percent that quarter from 6.19 percent in the previous quarter and 6.67 percent a year earlier. It was the sixth quarter in a row that mortgage delinquency rates dropped. Borrowers must be 60 or more days past due to be considered delinquent.

Repaying mortgage debt

Tim Martin, group vice president of the U.S. Housing Market in TransUnion's financial services business unit, said in a statement:

While relatively low home prices and high unemployment continue to exert upward pressure on delinquency rates, they are more than offset by the impact of more conservative lending policies reflecting consumers with higher credit scores. Not only are these consumers less likely to default if house prices continue to edge downward throughout the year, but their willingness to repay their debt obligations in the face of high unemployment rates is greater. It is because of these dynamics that lenders today take a much closer look at the borrower's income history and overall debt situation than before the recession began in 2007.

The state with the highest mortgage loan delinquency rate was Florida at 13.91 percent, followed by Nevada (13.04 percent), California (7.83 percent) and Arizona (7.78 percent).

The lowest loan delinquency rates were found in North Dakota (1.45 percent), South Dakota (2.31 percent), Nebraska (2.43 percent) and Alaska (2.64 percent).

Use a loan calculator

Lowering mortgage loan payments is one way to reduce some of the stress of keeping up with bills. Refinancing could lower your monthly payments, and since mortgage rates are super low, now is a good time to compare some of the refinance mortgage deals out there. A free mortgage calculator can help you evaluate whether refinancing is a good move.

When using a mortgage payment calculator you can run different scenarios to see how your payments would change by lowering your mortgage rate. Near the end of the week of Aug. 12, mortgage rates had fallen to or near historic lows, which was likely to result in some significant savings for borrowers able to get refinancing. You can also use a closing costs calculator to compare the fees involved with different loan packages.

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