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Ariz. ranks No. 2 in high-interest mortgages
Information for Buyers
Catherine Reagor
The Arizona Republic
Mar. 18, 2007 12:00 AM
Arizona ranks No. 2 in the country for the highest percentage of subprime loans, those risky, high-interest mortgages that grabbed national headlines last week with the announcement that delinquencies and defaults are rising.
Only Nevada has a higher percentage, according to new figures from the Mortgage Bankers Association.
Almost 17 percent of Arizona homeowners have subprime loans. In Nevada, it's 19 percent. Florida ranks No. 3 with 16 percent.
All three states saw huge home-price run-ups a few years ago, and subprime loans made it possible for many people with bad credit to buy those homes.
But now interest rates on those loans are climbing, and many people can no longer afford their homes.
Nationally, late payments on subprime mortgages climbed to 13.3 percent at the end of 2006, the highest level since mid-2002.
Arizona's delinquency rate is still relatively low at 9.26 percent.
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