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-- a lot about those folks who find themselves underwater in their mortgages that new analysis shows that a surprising number of Americans are free and clear of their mortgage debt about 21 million of them.
For more on this study we turn to our financial analysts fearing givens -- in -- -- good morning again really.
-- really 30% of us freeing clear -- mortgage debt nothing but historically that's right in line is not.
What you look back at 1940.
We had that we had a lower rate of homeownership at 44% to 55 have a sprinkler.
But even so broadly speaking -- numbers -- -- I think is surprising because we're always fixated on the negative equity people the fourteen million people were underwater.
Dragon economy drag on the housing sector he's the good people who get overlooked a financially responsible.
Pay their bills on time.
I imagine a major generational divide here probably a large chunk of these folks or retired or retiring baby boomers compared to folks and younger generations to.
Wanted to have.
That's right it is a big factor in this analysis from zillow because older Americans 65 and older for example they've been in the homes -- time they've had time -- half their debt.
So that's one of the main reasons why are seeing that that they they have the highest rate of freeing clear homeownership.
Credit score has something to do with it to 44%.
Freeing clear homeowners having very high credit rating of 80900 -- -- -- They're financially responsible -- not delinquent -- paying the bills on time now they've decided they wanna be debt free.
If you can get a mortgage though I will argue that it is stupid I don't know I'm a particularly if you're younger are free and clear.
Number one -- almost record low mortgage rates now.
Number two you don't put your own capital at risk the more that you -- more -- The less equity you have exposed -- -- viewed as an individual stand to -- -- -- great inflation play.
If he can borrow and then you're basically -- of the you'd have your basically inflating your way.
Into gains and then the mortgages -- seduction I want.
That financially there's not much incentive to -- -- -- I think it is nice to be freeing clear to not have this debt hanging over you.
If you have a lot of casting her flushed with cash why not -- you can probably be better elsewhere than -- stable 3% of the housing market has returning.
It's nice thought to have the debt.
Right if you if you don't need.
-- -- I don't know I like she's not like a lot of other stuff I've read of thank you never know if you know how diversified portfolios you don't wanna -- all your money and housing -- if I was 75 you know on getting close not quite there yeah my what if you read tech millionaire some of those touched just gone by Faisal cast your that they -- out.
I'm -- today.
I don't think a lot of I don't think that they would put their capital at risk like panel when she -- although the company -- you got five billion dollar here Larry Ellison right went just when they're my play by an island.
That's -- what about what.
About location on this where we I imagine there's a lot of folks cashing out in the northeast by house cash or if you -- in taken alone the fifth time.
I just invite more stand by more yeah I mean I can you put the whittling away is that a dynamic where we see we and it's happening the highest rate at.
Mean -- homeownership is in those areas we do you know the population.
Pittsburg for example.
You know that's what the highest rate right now you know also values there are below the median national average and if -- at seven thousands of -- also is one of those areas to work.
People -- have that mentality -- -- buy high sell higher you know make a ridiculous amount they weren't really affected by that so.
That has the highest rated -- their homeownership -- -- -- -- Cleveland -- in the midwest a 1111000 is median value there.
That's low what about the lowest quickly.
The lowest end to be the transit markets like DC for example area god how could people who are out there like -- -- matching -- -- -- You know it's in now that I greatest fifteen point 5% you've got high -- -- Denver Charlotte coming in around 20% Las Vegas also list the big picture.
This is helping big picture this is helping me like -- -- -- -- on the negative equity.
These are people who are helping to stabilize the housing market there really -- nice good strong force because they have the ability to move around -- flexible but the homes on the market.
Keep the market.
There thank you have been -- grateful C look at how it I think to keep -- -- and I worked together years ago.
Conflict that's why didn't like Montana hello I think was the one point coined that term -- taken any delay -- -- -- Rich -- -- rich.
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