overleveraged

With mortgage rates at historic lows, many people might be tempted to buy a home before they’re financially ready.

In order to determine where homeowners have the most unsustainable mortgage debts in the country, WalletHub recently released the 2017 Home Overleverage Report. Their analysts compared the median mortgage debt to the median income and median home value in more than 2,500 U.S. cities.

Dallas did not fare well when it comes to overleveraged mortgage debtors.

“Dallas ranked fairly well when compared to other major cities as it has an affordable median house value at $135,400,” said WalletHub analyst Jill Gonzalez. “However, the median earnings per individual are fairly low at just $27,935, which makes it harder to pay off a $131,144 median individual mortgage debt.”

Many residents are simply taking on more mortgage debt than they can handle, and putting very little money forward as a down payment.

“Being overleveraged can make it harder for homeowners to make their monthly payments, possibly leading to defaulting on their mortgages,” she said. “The city was ranked and scored based on its mortgage debt-to-income ratio and mortgage debt-to-house value ratio. Dallas’ overall rank is mostly due to its high debt-to-income ratio, at 469 percent.”

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Klyde Warren

Thanks to Texas’ mild fall and winter and relatively low cost of living, there’s plenty of room outside for first date spots with access to food trucks, which is good news for singles on a budget.

Texas is for singles? It may be cold comfort if you’re spending Valentine’s Day alone this year, but when it comes to being single, there are worse places to live than Texas. Forty-four worse places, in fact!

A recent report by WalletHub ranked Texas the No. 6 ‘dating-friendly’ state to live. Lends a whole new twist to the Lone Star State, right?

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Don't Mess with Taxes

Wallet Hub did a very interesting analysis when it comes to the various tax systems employed by individual states in the nation. Come to find out, Texas’ tax system, which relies heavily on property taxes to fund our government services, is rated as one of the most unfair tax systems. Of course, after our recent spate of good fortune in the housing market, it’ll be interesting to see how much homeowners are going to end up paying in 2015. And what about all of the capital gains folks are going to have to pay on those record-breaking sales?

Next April is going to hurt, that’s for sure.

Jump to see the how Texas measured up:

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