Tag Archives: debt

Driven by Mortgages, U.S. Household Debt Hits New High

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Source: Statista

U.S. household debt climbed to a record high of $14.6 trillion at the end of 2020, as mortgage debt surpassed $10 trillion for the first time. According to the New York Fed’s latest Household Debt and Credit Report, mortgage debt increased by a whopping $183 billion over the past three months alone.

The increase was mainly driven by a record volume of mortgage originations, as many households took advantage of historically low mortgage rates to refinance their mortgages and even take out some cash in the process. In fact, refinances accounted for roughly $700 billion of the almost $1.2 trillion in mortgage originations in the fourth quarter, with 85 percent of that total coming from customers with super-prime credit scores.

Interestingly, the high volume of refinances from super-prime borrowers has also contributed to historically low delinquency rates. With 96.8 percent of total household debt non-delinquent, the current situation is in sharp contrast to the end of 2009, when just 88 percent of consumer debt was non-delinquent.

Infographic: Driven by Mortgages, U.S. Household Debt Hits New High | Statista

U.S. Household Debt Tops $14 Trillion for the First Time

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Source: Statista

Total household debt in the United States, including mortgages, auto loans, credit card and student debt, climbed to $14.15 trillion in the fourth quarter of 2019, eclipsing the previous peak at the height of the great recession in Q3 2008 by $1.5 trillion in nominal terms.

That’s according to the Federal Reserve Bank of New York’s latest Report on Household Debt and Credit, which also shows that the delinquency rate, in this case the percentage of the total household debt balance that is at least 30 days past due, is significantly lower than it was back then (4.7 percent vs. a peak of 11.9 percent at the end of 2009), indicating that today’s debt burden isn’t as worrisome.

Standing at $9.56 trillion, mortgages still account for the lion’s share of the total debt balance, with student loans a distant second at $1.51 trillion. While credit card debt “only” amounts to $0.93 trillion, 8.4 percent of total credit card debt is 90+ days delinquent, trailing only student loans (11.6 percent) in that unfavorable category.

Infographic: U.S. Household Debt Tops $14 Trillion for the First Time | Statista

TD Bank Study Reveals Medical Professionals Worry Student Debt Will Negatively Impact the Home Buying Process

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TD Bank launches new product aiming to alleviate the unique challenges facing homebuyers in the medical field

Cherry Hill, NJ – March 21, 2019 (PRNewswire) Almost a quarter of medical professionals who own homes say their student debt made buying a home more difficult, according to a new survey by TD Bank. Of those that don’t own a home but plan to, one in six are worried that student debt will make the process more difficult.

Today, TD Bank announces the launch of a new Medical Professional Mortgage Product, specifically designed to alleviate these issues by accounting for the unique challenges facing medical professionals who are in the early stages of their career.

According to the survey, just under one in five medical professionals are aware of Medical Professional Mortgages, meaning they could be missing out on the opportunity to leverage a product that is tailored to their unique financial needs.

Considering medical school loans and earning potential, TD’s dedicated product helps address physicians’ and dentists’ pain points by helping applicants qualify for higher loan financing than standard mortgages, allowing them to utilize their money for investing or paying off student debt while still reaching their home ownership goals.

“Medical professionals dedicate their lives to caring for the health of our communities and in turn spend many years pursuing higher education and building up debt,” said Rick Bechtel, Head of Residential Lending at TD Bank. “We dedicate the same amount of care to designing products, such as TD Bank’s new Medical Professional Mortgage, which alleviates some of the biggest challenges those in the medical field face following graduation and residency, such as large amounts of debt and a lack of earning history.”

This competitive new offering, available in both fixed and adjustable rate options, provides the following features for practicing physicians and dentists, fellows and third-year residents:

  • Applicants may secure 100% financing. This was among one of the most appealing features according to the survey, with 44% of respondents selecting this option.
  • No private mortgage insurance (PMI) is required, another appealing feature selected by 44% of respondents.
  • Applicants may take out a maximum loan amount of up to $750,000 with 100% financing or up to $1,250,000with only 5% down. Only 18% of respondents were aware that Medical Mortgage Products offered loans up to $750,000, indicating a need for further education in this area.
  • Applicants may have flexible debt-to-income ratios, depending on income.

Eligible borrowers of TD’s Medical Professional Mortgage Product include licensed residents with a minimum of two years of completed residency and fellows; as well as practicing dentists and physicians and who are less than 10 years out of residency.

About TD Bank, America’s Most Convenient Bank®
TD Bank, America’s Most Convenient Bank, is one of the 10 largest banks in the U.S., providing more than 9 million customers with a full range of retail, small business and commercial banking products and services at more than 1,200 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Bank and its subsidiaries offer customized private banking and wealth management services through TD Wealth®, and vehicle financing and dealer commercial services through TD Auto Finance. TD Bank is headquartered in Cherry Hill, N.J.

TD Bank, America’s Most Convenient Bank, is a member of TD Bank Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services company in North America. The Toronto-Dominion Bank trades on the New York and Toronto stock exchanges under the ticker symbol “TD”. To learn more, visit www.td.com/us.