Midwestern homeowners were in the best shape to manage their mortgage payments, according to a recent study that ranked states by mortgage health.
San Francisco, Calif.-based NerdWallet.com looked at rates of serious mortgage delinquency, which it defined as a mortgage more than 90 days past due. The study also collected foreclosure inventories, average credit scores, monthly homeowner costs and median income growth to generate what it called a mortgage health score.
The consumer finance analysis site included mortgage payments, real estate taxes, insurance, utilities and condominium fees as homeowner costs.
States with the highest mortgage health scores, North Dakota, South Dakota, Nebraska, Iowa and Wyoming, all had average credit scores 670 or above and fewer homeowners paying more than 35% of their income on housing.
States in which homeowners were in the weakest position to make mortgage payments were Hawaii, Nevada, New York, Florida and New Jersey. States with the lowest mortgage health scores also had average credit scores in the high 600s, but had contracting median incomes and more consumers paying more than 35% of their income for housing.
Nevada's median income dropped by 13.10%, for example. Median incomes in Hawaii fell by 2.19%, New York fell by 2.96%, Florida by 4.42% and New Jersey by 5.19%, the site reported.
Two states where homeowner costs were relatively low but where incomes had declined, Rhode Island and Connecticut, also scored low on the list.
The data supported financial advice that consumers should not spend more than 33% of their income on housing, NerdWallet said.
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