As an increasing number of banks and other financial institutions are introducing lucrative schemes and offers for potential home investors, looks like the Americans are riding the mortgage tide well. Till date the focus has largely been on the gloomy side of the mortgage debt story but in a recent study compiled by Zillow, it was discovered otherwise.
According to the survey, it was revealed that around 29.3 percent of Americans did not have any mortgage debt at all. Around 21 million citizens own debt free homes. The analysis was carried out on data of the third quarter of 2012 in which it was found that 20.6 million house owners were mortgage free.
Percentage of debt free home owners varied across the country. The largest percentage was accounted in the region of Pittsburgh with around 38.6 percent of home owners being mortgage free. While Tampa and New York comprised of 33.2 and 29.7 percent respectively and Cleveland and Miami had 29.4 and 28.9 percent each, reports Property Wire.
However, Las Vegas, Atlanta and Washington D.C were accounted to have the least mortgage free home owners with 18.3, 17.7 and 15.5 percent respectively, reports CBC.
In the report, it was also observed that areas with lesser home values contained more number of debt free homes as smaller loans are easier to repay, reports Property Wire.
The financial factors were not the only considerations in the report; demographics also played a crucial role. It was discovered that people aged 65 to 74 were more liable to own a debt clear home, which makes up 20.5 percent of the total pie. However, the most interesting fact was that around 34.5 percent of the total mortgage clear home owners were aged between 20 to 24 years.
Around 44 percent of outright home owners scored a high credit rating between 800 and 900 while 15 percent of the same strata accounted for a higher credit rating of 900 to 990.
"So far we have used our unique data on how many home owners owe on their homes primarily to identify underwater and delinquent groups of homeowners. But looking at those homeowners who are free-and-clear is important, too." Stan Humphries, Chief economist at Zillow explained.
The study included rental homes in its analysis as well.
