Mortgage Loans in the US: An Infographic and Analysis
Where in the country are the lowest property taxes? What about the highest foreclosure rates? What state has the most homes for sale?
These are all great questions simply for curiosity sake, but also for anyone considering buying a home. The infographic below lays out a lot of great information. We've looked it over, and have broken down what it means for you.
Property Taxes
This is a great piece of information when figuring out how much house you can afford. It’s included in the house payment through escrow, so simply dividing the home price by 360 (12 months per year on a 30-year mortgage) will not tell you your monthly payment. You need to know the taxes. According to the infographic, New Orleans will give you the lowest taxes. Surprisingly, Honolulu, Hawaii is in the top 10! Part of what a mortgage consultant will do is tell you the taxes in the are you’re looking to buy, and help keep you within your price range (Can you imagine paying more than $6,000 a year in taxes like Newark, New Jersey?! Wow!).
Foreclosure Rates
The housing bubble burst left several states with a lot of foreclosures, short sales and bank-owned homes. The worst seems to fall in Florida and out west. What does this mean for the average home buyer? As the market recovers and renters consider becoming buyers, they’re entering a buyers market. Home prices are low and interest rates stayed low. There are a lot of great deals out there on the market. However, the foreclosure mess left a lot of homes is disrepair. This means buying a $100,000 home for $40,000 may leave you with another $40,000 in repairs. Fortunately, the FHA 203k loan program comes into play. A borrower can finance those repairs and renovations into the mortgage, still coming out ahead with $20,000 in "instant equity." This means you’re paying an $80,000 mortgage on a $100,000 home! So these foreclosure rates can have a silver lining, even in the states with lower rates than Nevada, California and Florida.
Most Homes for Sale
Mark Jones (President and co-founder of AmeriFirst Home Mortgage) says: "Considering the abundance of homes for sale Michigan has a classic "buyer’s market." This allows a would be home purchaser to negotiate a great deal on the purchase of a home. Combine this with historically low interest rates and you have an environment of extreme home affordability. A home that was considerably out of reach just 4 short years ago is now very affordable."
You can see the original infographic (which you can zoom closer for clarity) and source here: Protect Peace of Mind
What do you think about this infographic? Leave your analysis in the comments section below! And check out our free eBook "Get Mortgage Ready" to see if you’re ready to buy a home!