4 Surprising Stats About Credit Scores and Homeownership

September 29, 2020


The financial crisis that began in 2007 left many Americans in dire straits, but homeowners were among the hardest hit through foreclosures and plummeting property values. While the nation’s economy is showing healthy signs of slow but steady recovery, the idea of refinancing your home or attempting to secure any type of financing can be daunting.

Armed with a bit of knowledge about the current financial climate in the country, along with some credit score and homeownership statistics, you will be able to better understand what recovery looks like in a post-collapse world.

Credit Score and Homeownership Figures to Know

  1. Median FICO scores remain positive, despite the financial crisis. In fact, an estimated 45 percent of consumers have a credit score between 700 and 799, with an overall median of 723. FICO credit scores scale from “very bad” at 300 to “very good” at 850.
  2. While homeownership rates in the United States dropped in 2014 for the ninth year in a row, rates decreased by the smallest margin since 2008, indicating stabilization for the first time since the financial crisis.
  3. Foreclosure filing rates dropped to their lowest level since the 2007 financial crisis in 2013, falling more than 25 percent from 2012’s total. Figures are predicted to drop again in 2014, pointing to a slow but steady recovery since foreclosure numbers peaked in 2010.
  4. The number of “underwater” mortgages has decreased substantially in 2014, leaving fewer homeowners in America owing more on their homes than they’re worth. This decrease can potentially be attributed to the tightening of lending requirements in response to the financial collapse. If you’re looking to refinance your mortgage, new requirements make it wise to work with a specialized refinancing lender.

What Homeowners Should Consider Today

First, it’s important to realize that it’s not all doom and gloom. The media is adept at making things sound a lot worse than they really are. A lot of homeowners are recovering equity in their homes and their credit is still in good shape.
Second, and most important, is to pay attention to how low interest rates are. If you’re one of the 56% of homeowners who have a mortgage rate higher than 4% then it would be a good idea to look into refinancing.
When you’re ready to refinance you can get a custom quote and complete your application online. From quote to close, we’ll be with you every step of the way.