The data on mortgage status were obtained from Housing Questions 21a and 22a in the 2021 American Community Survey (ACS). The questions were asked at owner-occupied units. "Mortgage" refers to all forms of debt where the property is pledged as security for repayment of the debt, including deeds of trust; trust deeds; contracts to purchase; land contracts; junior mortgages; and home equity loans.

A mortgage is considered a first mortgage if it has prior claim over any other mortgage or if it is the only mortgage on the property. All other mortgages (second, third, etc.) are considered junior mortgages. A home equity loan is generally a junior mortgage. If no first mortgage is reported, but a junior mortgage or home equity loan is reported, then the loan is considered a first mortgage.

In most data products, the tabulations for "Selected Monthly Owner Costs" and "Selected Monthly Owner Costs as a Percentage of Household Income" usually are shown separately for units "with a mortgage" and for units "not mortgaged." The category "not mortgaged" is comprised of housing units owned free and clear of debt.

Mortgage status provides information on the cost of home ownership. When the data is used in conjunction with mortgage payment data, the information determines shelter costs for living quarters. These data can be used in the development of housing programs aimed to meet the needs of people at different economic levels.

Question/Concept History

Since 1996, the American Community Survey for mortgage status questions have been the same.

Comparability

Data on mortgage status in the 2021 ACS can be compared to previous ACS and Census 2000 mortgage status data. For Census 2000, tables for both total owneroccupied housing units and specified owner-occupied housing units were released, thus comparisons can be made only when comparing the same universes between the two data sets.

The data for monthly housing costs as a percentage of household income are developed from a distribution of "Selected Monthly Owner Costs as a Percentage of Household Income" for owner-occupied and "Gross Rent as a Percentage of Household Income" for renter-occupied units. The owner-occupied categories are further separated into those with a mortgage and those without a mortgage. See sections on "Selected Monthly Owner Costs as a Percentage of Household Income" and "Gross Rent as a Percentage of Household Income" for more details on what characteristics are included in each measure and how these data are comparable to previous ACS and Census 2000 data.

Monthly housing costs as a percentage of household income provide information on the cost of monthly housing expenses for owners and renters. The information offers an excellent measure of housing affordability and excessive shelter costs. The data also serve to aid in the development of housing programs to meet the needs of people at different economic levels.