Fairfax Virginia New Home Owners Carry Less Mortgage Debt

In Fairfax County, VA., the average mortgage amount for $conforming (non jumbo) mortgages declined to $272,000 during the first quarter of 2009. This is more than a 16% decrease from the average mortgage loan amount of $conforming mortgages in Fairfax County Virginia during the first quarter of 2008 when the average loan was $317,000.

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The chart above shows the monthly average mortgage amount for conventional purchase money mortgages on properties in Fairfax County Virginia. Only conventional mortgages having mortgage amount below the conforming limit are included ($417,000 for mortgages with closing dates in 2006, 2007, 2008 and 2009 and $360,000 for mortgages having closing dates in 2005).

Home purchasers are able to obtain lower first lien mortgages to purchase homes in Fairfax as a result of decreases in home prices.

The savings to Fairfax home owners has its costs to mortgage lenders. Not only are mortgage lenders originating fewer mortgages, the reduced loan amounts result in reduced loan origination fees. Mortgage lenders typically charge 1 percent of the mortgage amount for their compensation in originating the mortgage.