10 Cities With the Most (and Least) Paid-Off Mortgages
Just as all mortgage debt is not created equal, the rate that homeowners pay down their mortgages is not equal, either. A number of variables go into the size and terms of a mortgage loan, including the price of the home, the length of the loan, the size of the down payment and the applicant’s creditworthiness.
Those all play a role in how long it might take to pay off your mortgage. Another factor is your location — if you live in a city where homes and fees are expensive, it stands to reason it will take longer to pay down your mortgage than if you live where you can buy a home for half the price.
This was confirmed in a recent study by the U.S. Chamber of Commerce that tracked which American cities are the least (and most) likely to have unpaid mortgages. In determining its results, the chamber analyzed housing data from nearly 15 million owner-occupied homes situated in the 170 most densely populated census-defined places, based on data from the U.S. Census Bureau’s American Community Survey.
On average, it takes 30 years to fully pay off a mortgage, and 61.3% of homeowners nationwide are still in debt on their homes, according to the chamber. With mortgage rates rising this year, it will be especially difficult for new homeowners to pay their mortgages off early.
The average mortgage rate for a 30-year fixed mortgage stood at 7.17% as of Sept. 21, 2023, according to Freddie Mac. That’s up 0.9% from a year earlier and well above the 52-week average of 6.64%.
Californians Take Longer To Pay Off Mortgages
One thing the study revealed — which might not come as a huge surprise — is that homeowners in California take a lot longer to pay off their mortgages than those in the rest of the country. This is largely the product of having the most expensive median monthly housing costs in the nation.
Among the top 50 cities with the most unpaid mortgages, 18 are in the Golden State — and most of those are located within the Los Angeles metropolitan area.
In contrast, many of the cities with the least mortgage debt are located in the South, where homes tend to be cheaper.
Here are the top five cities with the most paid-off mortgages:
1. Detroit, Michigan
- Homeowners with paid-off mortgages: 85,409.
- Median years lived in home: 16.
- Percentage of homeowners with paid-off mortgages: 66.2%.
2. Brownsville, Texas
- Homeowners with paid-off mortgages: 19,989.
- Median years lived in home: 14.
- Percentage of homeowners with paid-off mortgages: 58.0%.
3. Pasadena, Texas
- Homeowners with paid-off mortgages: 15,773.
- Median years lived in home: 15.
- Percentage of homeowners with paid-off mortgages: 54.5%.
4. Birmingham, Alabama
- Homeowners with paid-off mortgages: 20,636.
- Median years lived in home: 18.
- Percentage of homeowners with paid-off mortgages: 50.7%.
5. Jackson, Mississippi
- Homeowners with paid-off mortgages: 14,491.
- Median years lived in home: 18.
- Percentage of homeowners with paid-off mortgages: 50.2%.
On the other side of the coin, here are the five cities with the most unpaid mortgages:
1. Fontana, California
- Homeowners with unpaid mortgages: 32,565.
- Median years lived in home: 9.
- Median monthly housing costs: $2,236.
- Percentage of homeowners with unpaid mortgages: 82.5%.
2. Gilbert, Arizona
- Homeowners with unpaid mortgages: 55,398.
- Median years lived in home: 6.
- Median monthly housing costs: $1,921.
- Percentage of homeowners with unpaid mortgages: 79.2%.
3. Moreno Valley, California
- Homeowners with unpaid mortgages: 26,147.
- Median years lived in home: 13.
- Median monthly housing costs: $1,991.
- Percentage of homeowners with unpaid mortgages: 78.9%.
4. Alexandria, Virginia
- Homeowners with unpaid mortgages: 24,232.
- Median years lived in home: 7.
- Median monthly housing costs: $2,684.
- Percentage of homeowners with unpaid mortgages: 77.8%.
5. Riverside, California
- Homeowners with unpaid mortgages: 39,744.
- Median years lived in home: 13.
- Median monthly housing costs: $2,061.
- Percentage of homeowners with unpaid mortgages: 77.6%.
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