Mortgage Daily Logo
mortgage news from industry experts

Average LTVs, Negative Equity Decline

As home lenders and residential loan borrowers continued to improve their equity positions, more borrowers have found themselves above water.

As of the second quarter, there were $8.926 trillion in outstanding mortgages, growing from the previous period, when the total was $8.841 trillion.

The nation’s collective outstanding mortgage portfolio has grown considerably from the second quarter of last year, when there were $8.685 trillion in home loans outstanding.

The figures were detailed Tuesday in the Equity Report Second Quarter 2015 from CoreLogic Inc.

The average loan-to-value ratio on all U.S. mortgages was 57.3 percent as of the most-recent period.

Lenders and borrowers improved their positions compared to the first quarter, when the average LTV ratio was 58.9 percent, and the second-quarter 2014, when the ratio came in at 59.3 percent.

In Hawaii, the average LTV ratio was 43.7 percent — the lowest of any state. Next was was New York’s 45.9 percent, then California’ 49.8 percent, the District of Columbia’s 52.4 percent and Massachusetts’ 54.3 percent.

Nevada had an average LTV ratio of 70.8 percent, the highest in the country. After that was Arkansas’ 70.0 percent, then Nebraska’s 69.1 percent, Oklahoma’s 68.5 percent and Ohio’s 67.7 percent.

There were
45.9 million U.S. properties with an LTV ratio of no more than 100 percent as of the latest date.

That put the share of upside-down borrowers at 10.9 percent of all outstanding home loans.

The latest national equity position reflected an improvement over the prior period, with 759,000 residential properties moving into a positive-equity position.

As a result of the improvement, the amount of negative equity declined by $28.5 billion from three months earlier to $309.5 billion. A year earlier, negative equity amounted to $350 billion.

Among underwater borrowers, 2.6 million had a first mortgage but no home-equity loan. Another 1.7 million did have an HEL.

CoreLogic noted that 95 percent of homes valued at more than $200,000 are in a positive equity position, while the share was just 87 percent for houses worth less than $200,000.

Negative equity was most prevalent in Nevada, where 20.6 percent of all residential loans had an LTV ratio in excess of
100 percent. Florida followed with 18.5 percent of borrowers underwater, then 15.4 percent in Arizona, 13.8 percent in Rhode Island and 13.1 percent Illinois.

At the other end of the spectrum was Texas, where 97.9 percent of borrowers had positive equity. In Alaska, the positive-equity share was 97.6 percent, then 97.5 percent in Hawaii, 97.2 percent in Montana and 96.7 percent in Colorado.

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION