Few things can rattle your financial nerves more than finding yourself “underwater” on your mortgage.
This unhappy condition results when you owe more on your mortgage than your home is worth. A decline in your home’s value or an increase in your home-loan debt can quickly put you underwater.
Here are the states with the highest percentage of homeowners who are underwater on their mortgage, according to CoreLogic’s latest quarterly Homeowner Equity Insights report.
1. Louisiana
This state’s share of negative equity: 6.1% as of the third quarter of 2023
Housing markets are cooling down in Louisiana. Right now, New Orleans tops the list in “16 Places Where Homes Are Sitting on the Market Longer.”
2. Iowa
This state’s share of negative equity: 4.9% as of the third quarter of 2023
Iowa residents who are underwater can comfort themselves with the knowledge that at least the taxman is taking a smaller bite out of their budget. Iowa is one of “10 States That Have Lowered Property Taxes in 2023.”
3. Oklahoma
This state’s share of negative equity: 4.1% as of the third quarter of 2023
In addition to being underwater, some homeowners in Oklahoma are having trouble making their monthly payment. Tulsa made the list in “15 Places Where the Most People Are Behind on Their Mortgage.”
Other states with the most negative equity
Here are the rest of the states where negative equity affects 3% or more of properties:
- North Dakota (3.7% as of the third quarter of 2023)
- Kentucky (3.4%)
- Arkansas (3.3%)
- New York (3.3%)
- Nebraska (3.1%)
- Illinois (3%)
If you plan to buy in the near future, stop by the Money Talks News Solutions Center and search for a great mortgage rate.
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