With mortgage rates low due to the effect of the coronavirus pandemic on the economy but starting to rise as conditions improve, the free-credit-score website WalletHub today released its 2021 Home Overleverage Report.
In order to determine where homeowners have the most unsustainable mortgage debts, WalletHub compared the median mortgage debt to the median income and median home value in more than 2,500 U.S. cities.
| Most Overleveraged Cities | Least Overleveraged Cities |
| Willis, TX | Frankfort, IL |
| Dumfries, VA | West Mifflin, PA |
| Bell Gardens, CA | Orchard Park, NY |
| Ewa Beach, HI | Friendswood, TX |
| McKees Rocks, PA | Madison, IN |
| Kahului, HI | Powell, OH |
| Lahaina, HI | East St. Louis, IL |
| Santa Ana, CA | Mason City, IA |
| Santa Maria, CA | Chevy Chase, MD |
| Watsonville, CA | Gahanna, OH |
| Park City, UT | Port Richey, FL |
| Fallbrook, CA | Channelview, TX |
| Waipahu, HI | Naples, FL |
| Union City, NJ | Mount Airy, NC |
| Escondido, CA | Scarsdale, NY |
| Bay Point, CA | Chester, PA |
| York, PA | Bloomfield Hills, MI |
| Blacklick Estates, OH | Homosassa, FL |
| Beverly Hills, CA | Decatur, GA |
| Spring Valley, NY | Bronxville, NY |
Key Stats
- Chester, Pennsylvania, has the lowest mortgage debt-to-income ratio, 124 percent, which is 7.7 times lower than in Bell Gardens, California, the city with the highest at 955 percent.
- Bronxville, New York, has the lowest mortgage debt-to-house-
value ratio , 16 percent, which is 12.7 times lower than in McKees Rocks, Pennsylvania, the city with the highest at 203 percent. - Chester, Pennsylvania, has the lowest median mortgage debt, $41,859, which is 18.6 times lower than in Beverly Hills, California, the city with the highest at $780,457.
- Scarsdale, New York, has the highest median income, $214,970, which is ten times higher than in Bastrop, Louisiana, the city with the lowest at $21,583.
Prior to applying for a mortgage, we recommend prospective home buyers join WalletHub to review their free credit score and credit report to gauge their approval odds and possible interest rates. WalletHub’s Mortgage Payment Calculator can also help to determine an affordable monthly mortgage payment and realistic payoff timeline.
Please let me know if you have any questions or if you would like to schedule a phone, Skype or in-studio interview with one of our experts. Feel free to embed this YouTube video summarizing the study on your website. You can also use or edit these raw files as you see fit.
