Half With Positive Equity Still Paying Above-Market Rates

By:: Kirk Haverkamp | September 13, 2011

More than half of all homeowners with equity in their property are still paying above-market mortgage rates, despite a refinancing boom driven by historically low interest rates.

Currently, some 20 million homeowners with positive equity – 53 percent of all those considered “above water” – are paying above-market mortgage interest rates, according to figures released today by the data and analytics firm CoreLogic. The figures apply only to active mortgages and not to homeowners who have paid off their loans.

Another 8 million who are “underwater” on their mortgages are also paying above market rates, or approximately three-quarters of those in negative equity.

The disparity worsens as negative equity increases. The survey found that over 40 percent of homeowners with negative-equity loan-to-value ratios of 125 percent or more were paying mortgage interest rates of 6 percent or greater, compared to only 17 percent of those in positive equity.

Although the inability of homeowners in negative equity to refinance their mortgages has received a great deal of attention, the figures show that those in positive equity appear to be having difficulty as well. It’s not clear from the report why that is, although possible causes include minimal (yet positive) equity, loss of income, poor credit, uncertainty over the refinance process, low appraisals, or a combination of these or other factors.

The national share of homeowners in negative equity continued to decline in the second quarter of the year, according to the CoreLogic report, falling to 22.5 percent of all residential properties with mortgages, some 10.9 million, down from 22.7 percent in the first quarter. Another 2.4 million borrowers were classed as near-negative equity, with less than 5 percent positive equity in their property. Along with negative equity borrowers, this means that 27.5 percent of all homes with mortgages had less than 5 percent equity in the second quarter of 2011.

Start here to compare home equity rates from top lenders in our network

Call For Rates

800-419-1494

Speak to a lender now.

We will match calls to our toll free number with our network of lenders.

Home Equity Rate Quotes

National Rates

Loan Type	Today	+/-
30 yr fixed	3.72
15 yr fixed	3.03
5/1 ARM	2.75

Rates may contain points

Compare Rates »

Browse Mortgage Rates

Featured Guides

Browse our comprehensive guides to popular topics related to mortgage and personal finance.

Home Equity Calculators

Mortgage Loan Directory and Information, LLC or Mortgageloan.com does not offer loans or mortgages. Mortgageloan.com is not a lender or a mortgage broker. Mortgageloan.com is a website that provides information about mortgages and loans and does not offer loans or mortgages directly or indirectly through representatives or agents. We do not engage in direct marketing by phone or email towards consumers. Contact our support if you are suspicious of any fraudulent activities or if you have any questions.

Mortgageloan.com is a news and information service providing editorial content and directory information in the field of mortgages and loans. Mortgageloan.com is not responsible for the accuracy of information or responsible for the accuracy of the rates, APR or loan information posted by brokers, lenders or advertisers.