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Percentage of underwater homeowners plummets

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Mortgage Professional America | 22 Nov 2013, 12:28 AM Agree 0
The percentage of underwater homeowners fell at the fastest pace on record in the third quarter.
  • Brett | | 22 Nov 2013, 10:17 AM Agree 0
    If you originally buy the home with only 5% down, or less, it will take a while to get above the 80% LTV threshhold even with modest price appreciation. Most of your payments the initial years of the mortgage are going towards interest, not principal. For example, on a $150,000 mortgage at 4.5% for 30 yrs, making P&I payments of $760/mo, you would have only paid down $13,264 of principal after 5 yrs. With 2% annual appreciation it would still take over 4 yrs to get below 80% LTV.
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