20 States With The Most Mortgage Debt

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According to the Federal Reserve Bank of New York, in the fourth quarter of 2017, mortgage debt in the United States reached $8.8 trillion, an increase of $139 billion from the third quarter of 2017. Mortgages comprise the largest amount of household debt, which increased for the 14th consecutive quarter. However, mortgage debt statistics vary widely across the U.S. states with the large disparity in median home value for homes with a mortgage ($137,300 to $602,700) and median household income for homeowners with a mortgage ($68,744 to $143,414), both affecting the ability to pay and the need to take out loans.

A holistic overview of U.S. mortgage debt reveals a number of geographic trends. Midwestern states and Southern states have lower median household incomes and median home values, and less mortgage debt overall. West Coast states, especially those with densely populated urban centers, have the highest mortgage debt and debt-to-income ratios, followed by densely populated East Coast states. Across all states, approximately 63% of homes have a mortgage.

Despite the increase in mortgage debt, nationally, fewer homeowners are in serious delinquency (90+ day late) on their payments. The percent of mortgage debt balance 90+ days delinquent dropped from 1.53% to 1.17%, while the percentage of mortgages in early delinquency that were paid off was 35.9%, an increase from 30.9% in the previous quarter (New York Fed). The delinquency rate also varies by state, with more East Coast states having a delinquency rate greater than 1% compared to West Coast states, Southern states, or Midwestern states.

To see just how much mortgage debt and delinquency vary by location, researchers at Credit Sesame analyzed debt statistics from the New York Fed and housing characteristics from the U.S. Census. Using this data, Credit Sesame identified a number of mortgage debt metrics for each state all pertaining to owner-occupied homes with a mortgage, including average mortgage debt, median household income, median home value, debt-to-income ratio, and delinquency rate. The researchers used the debt-to-income ratio to rank states, with higher debt-to-income ratios corresponding to more debt. Here are the states with the most mortgage debt. All states on this list have a debt-to-income ratio greater than 2.

The 20 States with the Most Mortgage Debt

Photo Credit: Sean Pavone / Alamy Stock Photo

20. Georgia

  • Debt-to-income ratio: 2.02
  • Average mortgage debt: $163,334
  • Median household income: $81,035
  • Median home value: $179,600
  • Homes with a mortgage: 65%
  • Delinquency rate: 0.99%

Photo Credit: Sean Pavone / Alamy Stock Photo

19. Massachusetts

  • Debt-to-income ratio: 2.06
  • Average mortgage debt: $233,504
  • Median household income: $113,106
  • Median home value: $373,300
  • Homes with a mortgage: 70%
  • Delinquency rate: 1.95%

Photo Credit: Jeffrey Wickett – RF / Alamy Stock Photo

18. Alaska

  • Debt-to-income ratio: 2.12
  • Average mortgage debt: $226,192
  • Median household income: $106,840
  • Median home value: $286,600
  • Homes with a mortgage: 63%
  • Delinquency rate: 1.05%

Photo Credit: John Sirlin / Alamy Stock Photo

17. New Mexico

  • Debt-to-income ratio: 2.13
  • Average mortgage debt: $146,436
  • Median household income: $68,849
  • Median home value: $179,800
  • Homes with a mortgage: 55%
  • Delinquency rate: 2.67%

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Photo Credit: Sean Pavone / Alamy Stock Photo

16. New York

  • Debt-to-income ratio: 2.13
  • Average mortgage debt: $216,271
  • Median household income: $101,607
  • Median home value: $321,800
  • Homes with a mortgage: 61%
  • Delinquency rate: 1.64%

Photo Credit: Gregory Johnston / Alamy Stock Photo

15. Idaho

  • Debt-to-income ratio: 2.19
  • Average mortgage debt: $155,145
  • Median household income: $70,991
  • Median home value: $196,800
  • Homes with a mortgage: 64%
  • Delinquency rate: 0.80%

Photo Credit: Jon Bilous / Alamy Stock Photo

14. Delaware

  • Debt-to-income ratio: 2.19
  • Average mortgage debt: $187,137
  • Median household income: $85,415
  • Median home value: $246,500
  • Homes with a mortgage: 64%
  • Delinquency rate: 1.15%

Photo Credit: Jon Bilous / Alamy Stock Photo

13. Montana

  • Debt-to-income ratio: 2.24
  • Average mortgage debt: $161,881
  • Median household income: $72,303
  • Median home value: $233,300
  • Homes with a mortgage: 57%
  • Delinquency rate: 0.71%

Photo Credit: Jon Bilous / Alamy Stock Photo

12. Maryland

  • Debt-to-income ratio: 2.24
  • Average mortgage debt: $242,289
  • Median household income: $108,107
  • Median home value: $315,600
  • Homes with a mortgage: 74%
  • Delinquency rate: 1.60%

Photo Credit: Zoonar GmbH / Alamy Stock Photo

11. Utah

  • Debt-to-income ratio: 2.35
  • Average mortgage debt: $202,046
  • Median household income: $85,961
  • Median home value: $253,200
  • Homes with a mortgage: 71%
  • Delinquency rate: 0.55%

Photo Credit: Sean Pavone / Alamy Stock Photo

10. Florida

  • Debt-to-income ratio: 2.38
  • Average mortgage debt: $175,968
  • Median household income: $74,005
  • Median home value: $213,800
  • Homes with a mortgage: 57%
  • Delinquency rate: 1.27%

Photo Credit: Brian Overcast / Alamy Stock Photo

9. Oregon

  • Debt-to-income ratio: 2.39
  • Average mortgage debt: $204,964
  • Median household income: $85,793
  • Median home value: $301,200
  • Homes with a mortgage: 66%
  • Delinquency rate: 0.73%

Photo Credit: Eric Franks / Alamy Stock Photo

8. Virginia

  • Debt-to-income ratio: 2.40
  • Average mortgage debt: $237,313
  • Median household income: $98,918
  • Median home value: $285,800
  • Homes with a mortgage: 69%
  • Delinquency rate: 1.25%

Photo Credit: incamerastock / Alamy Stock Photo

7. Arizona

  • Debt-to-income ratio: 2.43
  • Average mortgage debt: $187,944
  • Median household income: $77,219
  • Median home value: $222,900
  • Homes with a mortgage: 64%
  • Delinquency rate: 1.11%

Photo Credit: Andrew Zarivny / Alamy Stock Photo

6. Colorado

  • Debt-to-income ratio: 2.53
  • Average mortgage debt: $231,231
  • Median household income: $91,592
  • Median home value: $322,100
  • Homes with a mortgage: 72%
  • Delinquency rate: 0.45%

Photo Credit: Image Source / Alamy Stock Photo

5. Washington

  • Debt-to-income ratio: 2.54
  • Average mortgage debt: $243,068
  • Median household income: $95,645
  • Median home value: $320,100
  • Homes with a mortgage: 69%
  • Delinquency rate: 0.69%

Photo Credit: Andrew Zarivny / Alamy Stock Photo

4. Nevada

  • Debt-to-income ratio: 2.79
  • Average mortgage debt: $219,735
  • Median household income: $78,642
  • Median home value: $246,700
  • Homes with a mortgage: 68%
  • Delinquency rate: 0.64%

Photo Credit: Sean Pavone / Alamy Stock Photo

3. District Of Columbia

  • Debt-to-income ratio: 2.86
  • Average mortgage debt: $409,853
  • Median household income: $143,414
  • Median home value: $602,700
  • Homes with a mortgage: 76%
  • Delinquency rate: 2.12%

Photo Credit: Sorin Colac / Alamy Stock Photo

2. Hawaii

  • Debt-to-income ratio: 3.29
  • Average mortgage debt: $351,098
  • Median household income: $106,629
  • Median home value: $592,700
  • Homes with a mortgage: 66%
  • Delinquency rate: 1.29%

Photo Credit: Sean Pavone / Alamy Stock Photo

1. California

  • Debt-to-income ratio: 3.35
  • Average mortgage debt: $345,859
  • Median household income: $103,266
  • Median home value: $491,100
  • Homes with a mortgage: 71%
  • Delinquency rate: 0.71%

Methodology & Full Results

All calculations and resulting statistics correspond to owner-occupied housing units with a mortgage. Mortgage debt statistics were sourced from the 4Q17 Federal Reserve Bank of New York, State-Level Household Debt Statistics dataset. Additional data on owner-occupied housing units with a mortgage were sourced from the 2016 American Community Survey (ACS) 1-Year Estimates, Financial Characteristics for Housing Units with a Mortgage file. For each state, the Average mortgage debt was calculated by multiplying the Mortgage loan debt balance per capita (New York Fed) by the Population (New York Fed) and dividing the resulting number by the number of owner-occupied households with a mortgage. The Debt-to-income ratio was calculated by dividing the Average mortgage debt (calculated above) by the Median household income for owner-occupied units with a mortgage (ACS). The resulting statistic was used to rank states, with higher debt-to-income ratios corresponding to more debt. Delinquency rate was also sourced from the New York Fed, and includes the percent of mortgage loan debt balance 90+ days delinquent.

 


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