Adam McCann, Financial Writer | WalletHubBuying a home represents an important milestone for most consumers. But for those who dive in to the deep end of real estate without a financial safety net, the decision could lead to buyer’s remorse in the long run.

Mortgage rates hit an all-time low recently due to the negative effect of the coronavirus pandemic on the U.S. economy. However, while the 15-year fixed-rate average and five-year adjustable rate average have continued to drop, the 30-year fixed-rate average has begun to rise again. In the wake of overall lower rates, many homeowners have looked to refinance, and many other Americans are wondering if now is a good time to buy.

As with any major financial decision, it’s wise to improve one’s credit score before applying for a mortgage in order to qualify for the best possible rates. Using a Mortgage Calculator can also help to determine an affordable monthly payment and realistic payoff timeline, whether borrowing for the first time or refinancing an existing loan. Without a good grasp of how to pay off mortgage debt, consumers might find that debt unsustainable.

In this report, WalletHub determined which cities are home to the most overleveraged mortgage debtors by comparing the median mortgage balances against the median income and median home value in more than 2,500 cities. Read on for our findings, expert homebuying advice and a full description of our methodology.

How did cities in Eastern North Carolina do? Here’s the drill-down:

Cities with the Highest Mortgage Debts

Percentile Rank* City WalletHub Home Overleverage Score** Median Mortgage Debt Median House Value Median Income Mortgage Debt-to-Income Ratio Mortgage Debt-to-House Value Ratio
67 New Bern 31.36 $130,485 $164,100 $35,494 368% 80%
49 Greenville 28.01 $124,914 $157,900 $39,947 313% 79%
89 Jacksonville 37.79 $139,128 $156,500 $32,027 434% 89%
Most Overleveraged Cities Least Overleveraged Cities
Willis, TX Dublin, OH/ Powell, OH
Bell Gardens, CA Cheektowaga, NY
Ewa Beach, HI Chagrin Falls, OH
Dumfries, VA Hingham, MA
Blacklick Estates, OH Plymouth, MI
McKees Rocks, PA Greenwood, MS
York, PA Gary, IN
Canton, MS St. Albans, WV
Kahului, HI Gahanna, OH
Santa Maria, CA Princeton, NJ
Santa Ana, CA Chevy Chase, MD
Watsonville, CA Yorktown, VA
Beverly Hills, CA West Mifflin, PA
Imperial Beach, CA Pascagoula, MS
Upper Marlboro, MD Scarsdale, NY
Cumming, GA Naples, FL
Bell, CA Bloomfield Hills, MI
Harrisburg, PA Homosassa, FL
Richmond, TX Decatur, GA
Hollister, CA Bronxville, NY

Key Stats

  • West Mifflin, Pennsylvania, has the lowest mortgage debt-to-income ratio, 140 percent, which is 7.4 times lower than in Bell Gardens, California, the city with the highest at 1,041 percent.
  • Bronxville, New York, has the lowest mortgage debt-to-house value ratio, 19 percent, which is 9.6 times lower than in McKees Rocks, Pennsylvania, the city with the highest at 182 percent.
  • East St. Louis, Illinois, has the lowest median mortgage debt, $42,809, which is 18.7 times lower than in Beverly Hills, California, the city with the highest at $802,098.
  • Scarsdale, New York, has the highest median income, $211,139, which is 9.6 times higher than in Bastrop, Louisiana, the city with the lowest at $22,021.

1 Comment

  1. It would be interesting to see how the ongoing affects of damage from hurricane Florence skewed these numbers. I am sure with the loss of value from the mini homes that were damaged and or destroyed by Florence affectedThese numbers.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.