The nation’s collective loan-to-value ratio is 70 percent. Home equity in the Golden State is higher than any other state.
That was one of the findings from a report released today by CoreLogic.
The Santa Ana, Calif.-based company said it analyzed 47,802,783 home loans that were outstanding as of June 30 for $8,875,764,627,185. The loans reportedly account for 85 percent of all U.S. mortgages.
The collective value of the financed properties was $12.7 trillion based on CoreLogic’s automated valuation models, and borrower equity was a collective $3.8 trillion.
Around 11.0 million residential properties with a mortgage had an LTV higher than 100 percent. Negative-equity borrowers accounted for nearly one quarter of U.S. borrowers. The share was minimally lower than in the prior period when there were 11.2 million loans.
The U.S. LTV of 70 percent was unchanged from March 31, 2010.
Nevada’s LTV was higher than any state: 120 percent. The Silver State’s loans exceeded home values by $21.2 billion.
Nevada was the only under-water state.
Borrowers in Arizona had a collective LTV of 94 percent, while Floridians were at 90 percent and loans in Michigan had a weighted-average LTV of 86 percent.
Georgia completed the top-five with an 80 percent LTV.
New York’s 50 percent LTV was the lowest in the country. Borrower equity was $416.3 billion in the Empire State.
High equity could also be found in Hawaii, where the LTV was 55 percent. Connecticut and Washington, D.C., also managed an LTV lower than 60 percent.
But it was in California — where the collective LTV matched the national ratio of 70 percent — that aggregate borrower equity stood highest: $855.1 billion.
CoreLogic noted that homes with more equity are appreciating faster than properties with LTVs in excess of 100 percent.
“The average values of properties with 50 percent or more equity increased over 1 percent between Q4 2009 and Q2 2010,” an announcement said. “
While properties with 25 percent to 50 percent in equity increased an average of 0.2 percent between the end of last year and the end of June, “values fell for every segment in negative equity, with the biggest value decline occurring for properties that are 50 percent or more in negative equity.“
CoreLogic Chief Economist Mark Fleming said nearly 5 million borrowers are in a severe negative equity position.