For the first time in 13 years, homeowners are saving more than they’re spending on high mortgage interest. Today, mortgage interest consumes 5.27% of the nation’s after tax-income.
Historically low interest rates, defaults and refinancings have shaved more than $100 billion off the nation’s annual mortgage bill – an amount comparable to all the unemployment benefits for one year or this year’s Social Security payroll tax cut.
To compare this drastic drop, this after tax-income percentage rate is comparable to those present in the 1980s and ’90s. In other words, consumers are distancing themselves from high risk, “cash out” loans and replacing the traditional 30-year mortgage to 15-year loans.
In short, homeowners are shaking off high mortgage payments by taking advantage of historically low interest rates. Indeed, homeowners have trimmed interest payments by 11% from the peak of 2008.
The nation has slashed total mortgage debt from nearly $11trillion during the peak in 2008 to $10.3 trillion in the first three months of 2011. This trend shows no sign of slowing. About 9% of all borrowers are behind on their mortgages, and 4.6% of homes are in foreclosure.
Today’s current real estate market, and ongoing foreclosure crises, presents all sorts of issues that must be properly navigated. There are many factors contributing to Florida’s nation leading delinquency rates. They include a weak job market, weak economic recovery, and a major drop in home prices. Consequently, Florida’s housing market remains unsettled in large part due to the continued foreclosure crises.
Our Miami foreclosure defense lawyers have assisted many homeowners in buying enough time to reach the solution that is right for them. There are many alternatives to foreclosure, and often times it just takes proper planning to properly navigate against the potential pitfalls. Help is often available to those who seek it.