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If you so much Lauren more Americans are saying so long to their mortgages according to recent study done by zillow dot com close to 13.
And -- homeowners have no mortgages and many of them are young.
Alex Sharpton is the CEO of the shark -- joining us now from Austin, Texas good to see Alex.
Is this kind of in line with the the historical trend of how many people have no mortgage at all.
It absolutely is impacting and I think a lot of people would be surprised to hear that.
Historically between thirty and 40% is the average of people who don't have a mortgage.
So we're actually a little low I think the biggest surprise in this report actually shocking to a lot of people.
Is the percentage of younger people they don't have a mortgage.
That is impressive because it's not surprising if it's an older American because the traditional thinking has always been.
You get a pay off your mortgage before you retire so you have no bank debt -- -- But with the younger buyers is it -- calls at younger owners rather.
Because they are buying may be foreclosed properties or distressed properties and that really requires an all cash and a -- absolutely I think that you know when you look at younger buyers it's probably a combination of things.
-- mortgage standards have tightened up so so any young younger buyer who can't get a mortgage maybe -- getting assistance from their parents.
Parents are buying a house -- -- any private mortgage may be awarded we're looking at private mortgages that aren't being recorded.
There's a high probability.
There was always for the last five years a high level of interest among younger buyers.
There's a high probability that they -- out and snapped up those 250151000.
-- foreclosures and now they're living in -- so I think it's a combination of things.
But overall in a healthy market we're gonna have about a third to may be as much as 40% of people not having mortgages.
-- look at it from the opposite I think it's perfectly healthy to have some home debt.
Because you get this immense.
From New York the mortgage interest up to one point one million dollars that becomes more valuable the wealthier you are if other deductions there were days.
And a what if -- home falls in value if you own it outright you are the sole -- are about laws not some big bank or small bank.
Sure you know at the end of the day there's arguments either way I'm proud to say that my wife and I are part of the club that we don't have a mortgage.
But I'm a huge supporter of mortgage debt.
They can be paid off over time.
I think what we're seeing today is a return to a healthy market where people are taking lower mortgages.
They're not taking you know every penny that they can possibly take.
And that I think what will be interest in his over the next decade we're gonna see the percentage of people -- -- their homes.
Increase because they have lower payments they're gonna start paying more towards the mortgage while the interest debt is greater the interest right up this fantastic.
Having no mortgage payment I can tell you from personal experience it's not that either.
Why did you just quickly out why did you decide to do that why do you -- -- -- -- I would I would I would love to tell you that there was that.
Some philosophical thing for my wife and I in 2008 we were taken under by that the Florida real estate market.
We ended up in bankruptcy court.
Once you go bankrupt.
It's pretty difficult to borrow money so Katie and I have saved every penny that we've made were very conservative.
-- we ended up by not only our own home cash outright but we have several investments here and -- I'd be here in Austin that we bought cash out right so we can't be done.
And at this point now that we own the homes banks are willing to lend this money but we made it not a lifestyle decision we just made a decision out of necessity.
I can tell you that on a monthly basis not having that payment that you have to live with is fantastic.
But we do miss the mortgage interest deduction -- Alex you've just told like it was you tell the whole story we thank you for that thank you for billionaire -- -- and we'll talk to -- and thanks for having me I know.
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