Growth of Zero Downpayment Mortgages

Given the exuberant state of the economy, more mortgage lenders have become willing to make mortgage loans that do not require a downpayment. Part of their interest stems from a diminishing market for refinancing mortgage loans. A recent study by HSH Associations, a mortgage research firm, has found that 62 percent of the 250 respondents made such loans. Maturities ranged from 15 to 30 years, and the average rate was 9.00 percent, versus 8.42 percent on conventional loans.