Comparing Your Mortgage: How Does It Stack Up?

It is only natural to be curious about how your mortgage compares to your neighbours'. While you cannot find out how much your neighbour owes on their home by researching public records, you can estimate their current mortgage balance by researching the local property market and looking up similar properties that have recently sold nearby. You can also estimate how much they owe by finding out how much they spend on their mortgage each month. When comparing your mortgage to your neighbours', it is important to remember that there are many factors that determine the type of mortgage you should apply for, such as your current financial situation, short- and long-term goals, and how much of a down payment you can afford.

How to find out if your neighbour has a mortgage

It is possible to find out whether your neighbour has a mortgage on their home and there are several ways to do so. Firstly, you can search local public records, such as property tax records, which are often available online, although you may need to pay a small fee and register for an account. You can also use personal record search websites to find out more information about the homeowner. Secondly, you can ask a realtor, who has easy access to the MLS (Multiple Listing Service) and online property search databases. Thirdly, you can simply ask your neighbour if they have a mortgage on their home, although be aware that they may not want to answer as it is personal information.

If you are looking to find out about your own mortgage, there are several options. You can find the number for your mortgage servicer on your monthly mortgage statement or coupon book. You can also look up your mortgage servicer by searching the Mortgage Electronic Registration Systems (MERS) website. Another option is to send a written request to your mortgage servicer; they are obligated to provide you with the name, address, and telephone number of the owner of your loan. You can also use online tools such as the Fannie Mae and Freddie Mac mortgage lookup tools to find out who owns your mortgage.

Estimating neighbour's mortgage debt

While you cannot find out how much your neighbour owes on their mortgage by researching public records, there are other ways to get a rough estimate of their mortgage debt.

Firstly, you can find out what your neighbour's home is currently worth by researching the local property market and looking up similar properties that have recently sold in the area. You can then compare your neighbour's house to these other homes to get an idea of how much their current mortgage balance might be.

Additionally, if you have a general idea of how much your neighbour spends on their mortgage each month, you can estimate their total mortgage debt. This information may be available through online portals provided by your county or town, which often include property records and mortgage information such as the rate and type of loan.

It is important to note that mortgage and ownership data can vary depending on location. For example, in some places, you can only access property tax information, while in others, you may be able to look up the owner's name and property tax or even access more detailed mortgage information.

If you believe that your neighbour's financial situation may impact your own, it is recommended to speak with a realtor or financial advisor for more information.

Benefits of knowing your neighbours

Knowing your neighbours comes with a wide range of benefits, from enhanced safety to mutual support and a sense of community.

Safety and Security

In well-connected neighbourhoods, there is an added layer of security. Neighbours who know each other's regular comings and goings are more likely to notice suspicious activity and can keep an eye on each other's properties, especially when one is on vacation. This extra set of eyes can help thwart potential thieves or intruders and foster a sense of security.

Mutual Support and Resource Sharing

Neighbours can provide support and assistance during challenging or joyous times, offering a friendly shoulder to cry on or celebrating together. They can also lend a helping hand with everyday tasks, such as borrowing a cup of sugar or an extension cord, saving time and money. Additionally, neighbours can provide recommendations for local services, such as plumbers, based on their own experiences.

Social Connection and Wellbeing

Knowing your neighbours can lead to enhanced social connections and a sense of community, which contributes to improved mental health and overall wellbeing. It can be especially beneficial for individuals without a live-in partner, providing a sense of belonging and support. Even simple interactions, like a friendly wave or saying hello, can boost happiness and life satisfaction.

Community Events and Friendships

Neighbourhood social events, block parties, and family-friendly amenities create opportunities to meet and engage with neighbours, fostering a sense of community. These events can lead to the development of lasting friendships and encourage outdoor activities, especially for children, who can easily make friends with neighbourhood playdates.

Emergency Preparedness

In times of emergency or natural disasters, knowing your neighbours can be crucial. Well-connected neighbourhoods have shown greater resilience and lower rates of loss during tragedies. Neighbours can provide support and assistance during challenging times, offering a sense of security and mutual aid.

How to get to know your neighbours

While it is not possible to find out how much your neighbour owes on their mortgage by researching public records, you can get an idea of how much they owe by checking local property values and comparing them to similar properties in the area.

Now, onto getting to know your neighbours. Building connections in your local community not only contributes to your happiness but also to those around you, enabling your community to flourish. Here are some ways to get to know your neighbours:

• Offer to water your neighbour's plants and bring in their mail while they are away.
• Mow their lawn while you are mowing yours.
• If you are an animal person, offer to take care of their pets while they are away.
• Invite your neighbours over for a home-cooked meal and drinks.
• Suggest a monthly hosting schedule so that you get to go out for dinner regularly, with only a short stroll home.
• Take a stroll around the neighbourhood with a neighbour, bring the kids or the dog, and grab a coffee afterwards.

Impact of neighbours on your home value

While it is natural to be curious about your neighbours' finances, it is important to note that information about how much they owe on their mortgage is kept private by law and is not available to the public unless the owner of the mortgage allows it. However, the condition of your neighbour's property can impact the value of your home.

The Impact of Neighbours on Your Home Value

The appearance and condition of neighbouring properties can affect the value of your home. When one property is unkempt, it can decrease the value of surrounding homes. This is called "external obsolescence" by appraisers, and it can lead to a 5% to 10% decrease in home values. For example, a neighbour's unmaintained lawn or an overgrown yard can negatively impact your home's value, especially if it is a recurring issue.

Neighbours with disruptive behaviours, such as loud parties, noise pollution from power tools or vehicles, or aggressive pets, can also make your neighbourhood less desirable to potential homebuyers, impacting your property value. Additionally, if your neighbours are not paying maintenance fees, it can affect the desirability of your neighbourhood and, consequently, the value of your home.

The presence of registered criminals or individuals engaging in criminal activity in your vicinity can also impact your home's value. Potential buyers, especially those with families or senior citizens, often prioritise safety when choosing a neighbourhood. A study by the New York Times found that living within 300-500 feet of a foreclosed home can lead to a 1.3% drop in property values, with the impact being more significant if the home is in physical disrepair.

While some factors, like the behaviour of your neighbours, are beyond your control, it is beneficial to be aware of how these factors can influence the value of your home and take appropriate measures when necessary.

Frequently asked questions