What does it mean to be “underwater”? Well, the term refers to homeowners whose mortgage payments are more than the worth of the home. If your home is underwater, then you have negative equity. Approximately 12.7% of all homes have a negative equity.
Fortunately, the number of properties with negative equity has been steadily declining since 2013. However, the problem still exists that many borrowers do not have enough in their bank accounts to relocate and buy a home. One out of every five borrowers have fewer than ten percent equity on their property. Much more than this is required for a down payment and other costs that are associated with a mortgage.
Currently, the states with the highest number of mortgaged properties that are in negative equity are Nevada, Florida, Mississippi, Arizona, and Illinois. The states that have the highest number of mortgaged properties are Montana, Alaska, North Dakota, and Hawaii.
If you have any questions regarding insurance in the Irvine area, please contact the agents at one of the top real estate companies in California. The Barr Team at Complete Real Estate Solutions has been working for years to compile an experienced team of real estate agents, who are dedicated to helping you buy or sell at the absolute best price. Contact The Barr Team, today!