Underwater Mortgages Rise, But Not in VA

While some parts of the country are struggling with rising mortgage debt, Virginia is holding strong. A new report shows that Louisiana, Kentucky, and Mississippi have the highest share of what’s called “seriously underwater” mortgages—where homeowners owe at least 25% more than what their home is actually worth.

In Louisiana, the numbers are especially rough. One out of every 10 mortgages is underwater. Kentucky and Mississippi aren’t far behind, and even though their numbers dipped slightly from last year, they’re still well above the national average. When your house is worth less than your loan, it becomes much harder to sell, refinance, or move. 

So what’s the takeaway? Even though Virginia is in good shape, the national rise in underwater mortgages is a reminder that home equity isn’t something to take for granted. High interest rates and softening home prices can chip away at your equity faster than you might think. Whether you’re planning to sell soon or stay put for years, keeping an eye on your home’s value and loan balance is always smart.

In my view, this is one of those quiet housing trends that flies under the radar—until it doesn’t. Thankfully, Virginia homeowners are in a much better spot than most, and that’s something to feel good about.

Source Inspiration: ZeroHedge