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Home Mortgage Rates in Missouri

Gateway Arch and St. Louis Skyline.

Missouri, whose best-known city is St. Louis, faces the same challenges as the rest of the United States when it comes to real estate prices, the pressures on those prices, and many of the options that homeowners have to face these issues. While the specific growth patterns, mortgage options, and foreclosure procedures vary from state to state, there are many common elements that impact home prices nationwide. An understanding of these elements serves as a good baseline for placing the specifics that apply to Missouri into context.

Metropolitan Areas

MO Rank US Rank Metro Area 2016 Pop 2010 Pop Change % △
1 20 St. Louis, MO-IL Metro Area 2,807,002 2,787,701 19,301 0.69%
2 30 Kansas City, MO-KS Metro Area 2,104,509 2,009,342 95,167 4.74%
3 105 Fayetteville-Springdale-Rogers, AR-MO Metro Area 525,032 463,204 61,828 13.35%
4 113 Springfield 458,930 436,712 22,218 5.09%
5 238 Joplin 177,805 175,518 2,287 1.30%
6 240 Columbia 176,594 162,642 13,952 8.58%
7 275 Jefferson City 151,391 149,807 1,584 1.06%
8 322 St. Joseph, MO-KS Metro Area 126,565 127,329 -764 -0.60%
9 391 Cape Girardeau, MO-IL Metro Area 97,443 96,275 1,168 1.21%
10 425 Branson 85,782 83,877 1,905 2.27%
11 457 Quincy, IL-MO Micro Area 76,712 77,314 -602 -0.78%
12 489 Farmington 66,627 65,359 1,268 1.94%
13 528 Fort Madison-Keokuk, IA-IL-MO Micro Area 59,846 62,105 -2,259 -3.64%
14 562 Warrensburg 53,942 52,595 1,347 2.56%
15 574 Fort Leonard Wood 52,654 52,274 380 0.73%
16 648 Rolla 44,608 45,156 -548 -1.21%
17 667 Poplar Bluff 42,739 42,794 -55 -0.13%
18 671 Sedalia 42,213 42,201 12 0.03%
19 693 West Plains 40,210 40,400 -190 -0.47%
20 708 Hannibal 39,118 38,948 170 0.44%
21 712 Sikeston 38,745 39,191 -446 -1.14%
22 759 Lebanon 35,490 35,571 -81 -0.23%
23 810 Kennett 30,535 31,953 -1,418 -4.44%
24 819 Kirksville 29,753 30,038 -285 -0.95%
25 856 Mexico 26,021 25,529 492 1.93%
26 866 Moberly 24,989 25,414 -425 -1.67%
27 877 Marshall 22,980 23,370 -390 -1.67%
28 883 Maryville 22,670 23,370 -700 -3.00%

General Real Estate Price Levels and Growth Trends

Average home prices across the state fall in the bottom 25% for the country. Recent research places the average value of homes in Missouri between $175,000 and $220,000. In relative terms, California and New York that have the highest average home prices in the country with average prices in each of those states above $400,000. Missouri is on par with most of the Midwest, with the exception of Illinois, which is artificially inflated by the high prices in Chicago.

Contrary to what one might expect, the most valuable homes are not located in the St. Louis area. They are higher there than in some of the more rural parts of the state, but the most valuable home in Missouri are in the southwest – the counties that border both Oklahoma and Arkansas. The average listing price for homes currently on the market in both Newton and McDonald counties is upwards of half a million dollars. Wealth and growth, however, are not always parallel. Despite the fact that prices are currently lower in St. Louis than elsewhere, the area is showing more growth.

Kansas City Skyline.

Across the state, home value have fallen by over 30%. Some experts believe that a recovery has begun, but this does not address the pressures facing commercial real estate. When the impact of mall vacancies and the affect that has on home values is considered, the picture is less attractive. While a recovery may be an optimistic spin, stabilization does seem to have begun.

Shifts in Growth

The recent sale of Budweiser (Anheuser-Busch) has led many to have concerns that growth trends in St. Louis may reverse if jobs are shipped overseas. While InBev has made no indications that this is part of their corporate vision for the company, these things can change quickly. Only time will demonstrate the true effects of this deal.

Missouri Census Data

According to the United States Census an estimated 6,093,000 people live in the state of Missouri. The state has 68,741.52 mi² of land area, which gave it a population density of 88.64 per mi². Here is a list of cities, towns, villages & Census Designated Places with more than 2,500 residents, with their estimated population as of June 2016 & the 2010 United States Census. For Census Designated Places (CDP) where there was no population estimate available for 2016 the 2011-2015 American Community Survey 5-Year Estimates data was used.

All table columns are sortable. Click on the column headers to sort by that column. Click again to sort low to high. Cities with higher levels of population growth typically see the increased demand drive faster real estate price appreciation.

Rank Geography County 2016 Pop 2010 Pop Change % △ Land mi² Pop Den mi²
1 Kansas City Jackson, Clay, Platte & Cass 481,420 459,787 21,633 4.71% 314.95 1,528.56
2 St. Louis St. Louis city 311,404 319,294 -7,890 -2.47% 61.91 5,029.95
3 Springfield Greene & Christian 167,319 159,498 7,821 4.90% 81.72 2,047.47
4 Columbia Boone 120,612 108,500 12,112 11.16% 63.08 1,912.05
5 Independence Jackson & Clay 117,030 116,830 200 0.17% 77.57 1,508.70
6 Lee's Summit Jackson & Cass 96,076 91,364 4,712 5.16% 63.35 1,516.59
7 O'Fallon St. Charles 86,274 79,329 6,945 8.75% 29.19 2,955.60
8 St. Joseph Buchanan 76,472 76,780 -308 -0.40% 43.99 1,738.40
9 St. Charles St. Charles 69,293 65,794 3,499 5.32% 23.65 2,929.94
10 St. Peters St. Charles 57,289 52,575 4,714 8.97% 22.37 2,560.97
11 Blue Springs Jackson 54,431 52,575 1,856 3.53% 22.27 2,444.14
12 Joplin Jasper & Newton 52,195 50,150 2,045 4.08% 35.56 1,467.80
13 Florissant St. Louis 51,776 52,158 -382 -0.73% 12.56 4,122.29
14 Chesterfield St. Louis 47,659 47,484 175 0.37% 31.77 1,500.13
15 Jefferson City Cole & Callaway 43,013 43,079 -66 -0.15% 35.95 1,196.47
16 Cape Girardeau Cape Girardeau & Scott 39,628 37,941 1,687 4.45% 28.43 1,393.88
17 Wentzville St. Charles 37,395 29,070 8,325 28.64% 19.96 1,873.50
Oakville CDP St. Louis 36,663 36,143 520 1.44% 15.93 2,301.51
18 Wildwood St. Louis 35,756 35,517 239 0.67% 66.42 538.33
19 University City St. Louis 34,706 35,371 -665 -1.88% 5.9 5,882.37
20 Liberty Clay 30,614 29,149 1,465 5.03% 29.03 1,054.56
21 Ballwin St. Louis 30,313 30,404 -91 -0.30% 8.99 3,371.86
Mehlville CDP St. Louis 29,953 28,380 1,573 5.54% 7.46 4,015.15
22 Raytown Jackson 29,261 29,526 -265 -0.90% 9.93 2,946.73
23 Kirkwood St. Louis 27,609 27,540 69 0.25% 9.16 3,014.08
24 Maryland Heights St. Louis 27,137 27,472 -335 -1.22% 21.83 1,243.11
25 Gladstone Clay 27,114 25,410 1,704 6.71% 8.05 3,368.20
26 Hazelwood St. Louis 25,443 25,703 -260 -1.01% 16.02 1,588.20
27 Grandview Jackson 25,190 24,475 715 2.92% 14.73 1,710.12
28 Belton Cass 23,290 23,116 174 0.75% 14.25 1,634.39
29 Webster Groves St. Louis 22,970 22,995 -25 -0.11% 5.9 3,893.22
30 Sedalia Pettis 21,489 21,387 102 0.48% 13.29 1,616.93
Affton CDP St. Louis 21,345 20,307 1,038 5.11% 4.6 4,640.22
31 Arnold Jefferson 21,319 20,808 511 2.46% 11.58 1,841.02
32 Nixa Christian 21,201 19,022 2,179 11.46% 8.48 2,500.12
33 Ferguson St. Louis 20,846 21,203 -357 -1.68% 6.19 3,367.69
34 Raymore Cass 20,839 19,206 1,633 8.50% 17.58 1,185.38
35 Warrensburg Johnson 20,251 18,838 1,413 7.50% 8.85 2,288.25
36 Rolla Phelps 20,075 19,559 516 2.64% 11.83 1,696.96
37 Ozark Christian 19,429 17,820 1,609 9.03% 11.1 1,750.36
Old Jamestown CDP St. Louis 19,239 19,184 55 0.29% 14.94 1,287.75
Spanish Lake CDP St. Louis 19,218 19,650 -432 -2.20% 7.42 2,590.03
38 Creve Coeur St. Louis 18,612 17,833 779 4.37% 10.27 1,812.27
39 Farmington St. Francois 18,355 16,240 2,115 13.02% 9.35 1,963.10
40 Manchester St. Louis 18,146 18,094 52 0.29% 5.08 3,572.05
41 Hannibal Marion & Ralls 17,808 17,916 -108 -0.60% 15.73 1,132.10
Fort Leonard Wood CDP Pulaski 17,576 15,061 2,515 16.70% 96.18 182.74
42 Kirksville Adair 17,519 17,505 14 0.08% 14.39 1,217.44
43 Poplar Bluff Butler 17,233 17,023 210 1.23% 12.9 1,335.89
Concord CDP St. Louis 16,953 16,421 532 3.24% 5.48 3,093.61
44 Clayton St. Louis 16,623 15,939 684 4.29% 2.48 6,702.82
Lemay CDP St. Louis 16,603 16,645 -42 -0.25% 4.37 3,799.31
45 Sikeston Scott & New Madrid 16,327 16,318 9 0.06% 17.32 942.67
46 Republic Greene & Christian 16,116 14,751 1,365 9.25% 13.3 1,211.73
47 Overland St. Louis 15,802 16,062 -260 -1.62% 4.36 3,624.31
48 Lake St. Louis St. Charles 15,777 14,545 1,232 8.47% 7.91 1,994.56
49 Jackson Cape Girardeau 15,036 13,758 1,278 9.29% 10.94 1,374.41
50 Jennings St. Louis 14,755 14,712 43 0.29% 3.7 3,987.84
51 Lebanon Laclede 14,709 14,474 235 1.62% 14.63 1,005.40
52 Carthage Jasper 14,309 14,378 -69 -0.48% 11.65 1,228.24
53 Washington Franklin 14,061 13,982 79 0.57% 9.34 1,505.46
54 Moberly Randolph 13,863 13,974 -111 -0.79% 12.22 1,134.45
55 Grain Valley Jackson 13,684 12,854 830 6.46% 6.06 2,258.09
56 Dardenne Prairie St. Charles 13,329 11,494 1,835 15.96% 4.92 2,709.15
57 Fulton Callaway 13,103 12,790 313 2.45% 12.26 1,068.76
58 Marshall Saline 12,897 13,065 -168 -1.29% 10.22 1,261.94
59 St. Ann St. Louis 12,812 13,020 -208 -1.60% 3.18 4,028.93
60 West Plains Howell 12,320 11,986 334 2.79% 13.31 925.62
61 Neosho Newton 12,181 11,835 346 2.92% 15.73 774.38
62 Festus Jefferson 12,104 11,602 502 4.33% 5.71 2,119.79
63 Crestwood St. Louis 11,905 11,912 -7 -0.06% 3.6 3,306.94
64 Troy Lincoln 11,862 10,540 1,322 12.54% 7.3 1,624.93
65 Maryville Nodaway 11,846 11,972 -126 -1.05% 5.77 2,053.03
66 Bridgeton St. Louis 11,680 11,550 130 1.13% 14.6 800.00
67 Mexico Audrain 11,680 11,543 137 1.19% 12 973.33
68 Excelsior Springs Clay & Ray 11,522 11,084 438 3.95% 10.42 1,105.76
69 Branson Taney & Stone 11,430 10,520 910 8.65% 20.63 554.05
70 Union Franklin 11,277 10,204 1,073 10.52% 9.16 1,231.11
71 Webb City Jasper 11,226 10,996 230 2.09% 8.63 1,300.81
72 Town and Country St. Louis 11,113 10,815 298 2.76% 11.68 951.46
73 Bolivar Polk 10,795 10,325 470 4.55% 8.28 1,303.74
74 Bellefontaine Neighbors St. Louis 10,702 10,860 -158 -1.45% 4.32 2,477.31
75 Kennett Dunklin 10,564 10,932 -368 -3.37% 6.96 1,517.82
76 Eureka St. Louis 10,534 10,189 345 3.39% 10.35 1,017.78
77 Harrisonville Cass 10,042 10,019 23 0.23% 9.88 1,016.40
78 Kearney Clay 9,790 8,381 1,409 16.81% 12.91 758.33
79 Cameron Clinton & DeKalb 9,788 9,933 -145 -1.46% 6.04 1,620.53
80 Chillicothe Livingston 9,714 9,515 199 2.09% 7.02 1,383.76
81 Smithville Clay & Platte 9,455 8,425 1,030 12.23% 15.56 607.65
82 Ellisville St. Louis 9,224 9,133 91 1.00% 4.4 2,096.36
83 Monett Barry & Lawrence 9,027 8,873 154 1.74% 8.43 1,070.82
84 Berkeley St. Louis 8,981 8,978 3 0.03% 4.97 1,807.04
85 Clinton Henry 8,844 9,008 -164 -1.82% 9.14 967.61
Murphy CDP Jefferson 8,745 8,690 55 0.63% 3.94 2,219.54
86 Park Hills St. Francois 8,655 8,759 -104 -1.19% 20.33 425.73
87 Ladue St. Louis 8,583 8,521 62 0.73% 8.55 1,003.86
88 Des Peres St. Louis 8,540 8,373 167 1.99% 4.32 1,976.85
89 Sunset Hills St. Louis 8,497 8,496 1 0.01% 9.1 933.74
90 Boonville Cooper 8,462 8,319 143 1.72% 6.89 1,228.16
91 Perryville Perry 8,456 8,225 231 2.81% 7.8 1,084.10
92 Pleasant Hill Cass & Jackson 8,444 8,113 331 4.08% 8.01 1,054.18
93 Richmond Heights St. Louis 8,389 8,603 -214 -2.49% 2.3 3,647.39
94 Nevada Vernon 8,224 8,386 -162 -1.93% 8.98 915.81
95 Warrenton Warren 8,130 7,880 250 3.17% 8.37 971.33
96 Brentwood St. Louis 8,000 8,055 -55 -0.68% 1.96 4,081.63
97 Oak Grove Jackson & Lafayette 7,994 7,795 199 2.55% 6.17 1,295.62
98 Dexter Stoddard 7,927 7,864 63 0.80% 6.52 1,215.80
99 Maplewood St. Louis 7,868 8,046 -178 -2.21% 1.56 5,043.59
100 Olivette St. Louis 7,844 7,737 107 1.38% 2.78 2,821.58
101 Carl Junction  Jasper 7,772 7,445 327 4.39% 5.48 1,418.25
102 Aurora Lawrence 7,507 7,508 -1 -0.01% 5.95 1,261.68
103 Marshfield Webster 7,245 6,633 612 9.23% 5.03 1,440.36
104 Pacific Franklin & St. Louis 7,210 7,002 208 2.97% 5.92 1,217.91
105 Bonne Terre St. Francois 7,147 6,864 283 4.12% 4.04 1,769.06
106 Sullivan Franklin & Crawford 7,126 7,081 45 0.64% 7.9 902.03
Sappington CDP St. Louis 7,113 7,580 -467 -6.16% 2.55 2,789.41
107 Black Jack St. Louis 6,940 6,929 11 0.16% 2.59 2,679.54
108 Valley Park St. Louis 6,911 6,942 -31 -0.45% 3.8 1,818.68
109 Parkville Platte 6,514 5,554 960 17.28% 14.79 440.43
110 De Soto Jefferson 6,477 6,400 77 1.20% 4.3 1,506.28
111 St. John St. Louis 6,397 6,517 -120 -1.84% 1.42 4,504.93
112 Shrewsbury St. Louis 6,149 6,254 -105 -1.68% 1.43 4,300.00
113 Battlefield Greene 6,050 5,590 460 8.23% 2.5 2,420.00
114 Trenton Grundy 5,932 6,001 -69 -1.15% 6.45 919.69
115 Glendale St. Louis 5,894 5,925 -31 -0.52% 1.29 4,568.99
Barnhart CDP Jefferson 5,858 5,682 176 3.10% 5.09 1,150.88
116 Caruthersville Pemiscot 5,801 6,168 -367 -5.95% 5.16 1,124.22
117 St. Robert Pulaski 5,753 4,340 1,413 32.56% 7.83 734.74
118 Charleston Mississippi 5,727 5,947 -220 -3.70% 4.8 1,193.13
119 Pevely Jefferson 5,712 5,484 228 4.16% 4.54 1,258.15
120 Greenwood Jackson 5,658 5,221 437 8.37% 3.97 1,425.19
121 Weldon Spring St. Charles 5,593 5,443 150 2.76% 7.51 744.74
122 Richmond Ray 5,575 5,797 -222 -3.83% 5.88 948.13
123 Bowling Green Pike 5,510 5,334 176 3.30% 2.69 2,048.33
124 Willard Greene 5,430 5,288 142 2.69% 5.92 917.23
125 Macon Macon 5,377 5,471 -94 -1.72% 6 896.17
126 Waynesville Pulaski 5,314 4,830 484 10.02% 6.42 827.73
127 Odessa Lafayette 5,195 5,300 -105 -1.98% 4.1 1,267.07
Glasgow Village CDP St. Louis 5,178 5,429 -251 -4.62% 0.92 5,628.26
128 Cottleville St. Charles 5,151 3,075 2,076 67.51% 4.46 1,154.93
129 Savannah Andrew 5,127 5,057 70 1.38% 3.14 1,632.80
130 Dellwood St. Louis 5,001 5,025 -24 -0.48% 1.03 4,855.34
131 Peculiar Cass 4,979 4,608 371 8.05% 8.41 592.03
132 Normandy St. Louis 4,934 5,008 -74 -1.48% 1.85 2,667.03
133 Desloge St. Francois 4,932 5,054 -122 -2.41% 2.9 1,700.69
134 Salem Dent 4,924 4,950 -26 -0.53% 3.17 1,553.31
135 Platte City Platte 4,872 4,691 181 3.86% 3.61 1,349.58
136 Crystal City Jefferson 4,823 4,855 -32 -0.66% 4.56 1,057.68
Imperial CDP Jefferson 4,807 4,709 98 2.08% 5.25 915.62
137 St. Clair Franklin 4,718 4,724 -6 -0.13% 3.7 1,275.14
138 Mountain Grove Wright & Texas 4,692 4,789 -97 -2.03% 4.01 1,170.07
139 Breckenridge Hills St. Louis 4,668 4,746 -78 -1.64% 0.81 5,762.96
140 Higginsville Lafayette 4,651 4,797 -146 -3.04% 3.8 1,223.95
141 Eldon Miller 4,643 4,567 76 1.66% 3.56 1,304.21
142 Rock Hill St. Louis 4,619 4,635 -16 -0.35% 1.09 4,237.61
143 Lexington Lafayette 4,584 4,726 -142 -3.00% 5.15 890.10
144 Mount Vernon Lawrence 4,553 4,575 -22 -0.48% 3.87 1,176.49
145 Ste. Genevieve Ste. Genevieve 4,493 4,410 83 1.88% 4.1 1,095.85
146 Scott City Scott & Cape Girardeau 4,492 4,565 -73 -1.60% 4.69 957.78
147 Hollister Taney 4,486 4,426 60 1.36% 6.68 671.56
148 Osage Beach Camden & Miller 4,456 4,351 105 2.41% 9.75 457.03
149 California Moniteau 4,421 4,278 143 3.34% 3.35 1,319.70
150 North Kansas City Clay 4,376 4,208 168 3.99% 4.39 996.81
151 Lamar Barton 4,363 4,532 -169 -3.73% 5.12 852.15
152 Brookfield Linn 4,303 4,542 -239 -5.26% 4.27 1,007.73
153 Vandalia Audrain & Ralls 4,275 3,899 376 9.64% 2.24 1,908.48
154 Centralia Boone & Audrain 4,192 4,027 165 4.10% 2.83 1,481.27
155 Northwoods St. Louis 4,150 4,227 -77 -1.82% 0.7 5,928.57
156 St. James Phelps 4,119 4,216 -97 -2.30% 4.27 964.64
157 Fredericktown Madison 4,089 3,985 104 2.61% 4.33 944.34
158 Butler Bates 4,078 4,219 -141 -3.34% 4.07 1,001.97
159 Malden Dunklin 4,064 4,275 -211 -4.94% 7.53 539.71
160 Woodson Terrace St. Louis 4,046 4,063 -17 -0.42% 0.77 5,254.55
161 Fenton St. Louis 4,032 4,022 10 0.25% 6.05 666.45
162 Herculaneum Jefferson 3,965 3,468 497 14.33% 4.06 976.60
163 Camdenton Camden 3,946 3,718 228 6.13% 5.48 720.07
Whiteman AFB CDP Johnson 3,893 2,556 1,337 52.31% 6.69 581.91
164 Ashland Boone 3,876 3,707 169 4.56% 4.79 809.19
165 Holts Summit Callaway 3,704 3,247 457 14.07% 3.44 1,076.74
166 Palmyra Marion 3,618 3,595 23 0.64% 2.76 1,310.87
167 Carrollton Carroll 3,603 3,784 -181 -4.78% 4.17 864.03
168 Pine Lawn St. Louis 3,592 3,275 317 9.68% 0.61 5,888.52
169 El Dorado Springs Cedar 3,577 3,593 -16 -0.45% 3.08 1,161.36
170 Frontenac St. Louis 3,566 3,482 84 2.41% 2.88 1,238.19
High Ridge CDP Jefferson 3,553 4,305 -752 -17.47% 3.8 935.00
171 Rogersville Webster & Greene 3,519 3,073 446 14.51% 3.44 1,022.97
172 Wright City Warren 3,517 3,119 398 12.76% 5.97 589.11
173 Tipton Moniteau 3,378 3,262 116 3.56% 2.09 1,616.27
Castle Point CDP St. Louis 3,368 3,962 -594 -14.99% 0.7 4,811.43
174 Cuba Crawford 3,340 3,356 -16 -0.48% 3.2 1,043.75
175 Cassville Barry 3,340 3,266 74 2.27% 3.22 1,037.27
176 Sugar Creek Jackson & Clay 3,304 3,345 -41 -1.23% 10.54 313.47
177 Pagedale St. Louis 3,292 3,304 -12 -0.36% 1.19 2,766.39
178 Louisiana Pike 3,281 3,364 -83 -2.47% 3.13 1,048.24
179 Riverside Platte 3,227 2,937 290 9.87% 5.51 585.66
180 Hillsboro Jefferson 3,131 2,821 310 10.99% 3.65 857.81
181 Bethany Harrison 3,122 3,292 -170 -5.16% 4.44 703.15
182 Licking Texas 3,116 3,124 -8 -0.26% 2.13 1,462.91
183 Portageville New Madrid & Pemiscot 3,109 3,228 -119 -3.69% 2.04 1,524.02
184 East Prairie Mississippi 3,106 3,176 -70 -2.20% 1.29 2,407.75
185 Pleasant Valley Clay 3,067 2,961 106 3.58% 1.23 2,493.50
186 Buckner Jackson 3,055 3,076 -21 -0.68% 1.79 1,706.70
187 Buffalo Dallas 3,049 3,084 -35 -1.13% 2.86 1,066.08
188 New Madrid New Madrid 2,957 3,116 -159 -5.10% 4.49 658.57
189 Chaffee Scott 2,948 2,955 -7 -0.24% 1.79 1,646.93
Gray Summit CDP Franklin 2,943 2,701 242 8.96% 7.25 405.93
190 Byrnes Mill Jefferson 2,929 2,781 148 5.32% 5.14 569.84
191 Ava Douglas 2,927 2,993 -66 -2.21% 3.3 886.97
192 Riverview St. Louis 2,803 2,856 -53 -1.86% 0.83 3,377.11
Villa Ridge CDP Franklin 2,800 2,636 164 6.22% 4.86 576.13
193 Windsor Henry & Pettis 2,785 2,901 -116 -4.00% 2.42 1,150.83
194 Knob Noster Johnson 2,734 2,709 25 0.92% 2.88 949.31
195 Hayti Pemiscot 2,718 2,939 -221 -7.52% 2.3 1,181.74
196 Montgomery City Montgomery 2,712 2,834 -122 -4.30% 3.16 858.23
197 Fayette Howard 2,695 2,688 7 0.26% 2.22 1,213.96
198 Bel-Ridge St. Louis 2,686 2,737 -51 -1.86% 0.8 3,357.50
199 Mountain View Howell 2,678 2,719 -41 -1.51% 3.75 714.13
200 Potosi Washington 2,643 2,660 -17 -0.64% 2.33 1,134.33
201 Clever Christian 2,631 2,139 492 23.00% 1.26 2,088.10
202 Clarkson Valley St. Louis 2,628 2,632 -4 -0.15% 2.7 973.33
203 Green Park St. Louis 2,627 2,622 5 0.19% 1.35 1,945.93
204 Owensville Gasconade 2,620 2,676 -56 -2.09% 2.64 992.42
205 Moscow Mills Lincoln 2,600 2,509 91 3.63% 3.12 833.33

Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2016
Source: U.S. Census Bureau, Population Division
Release Date: May 2017.

Mortgage Mechanics

Traditional Mortgages – Under a traditional mortgage, the lender (the mortgagor) advances the money to the borrower (the mortgagee). To protect its interest in the property, the mortgagor is granted a lien against the property that must be lifted before the property can be sold. In the event of a default, these two parties stand at odds and must have a court decide the matter (see the discussion of judicial foreclosure below). This is the most common mortgage structure in the United States.

Deed in Trust Mortgages – Under a deed of trust arrangement, there are three parties involved, rather than two: a beneficiary, a trustee, and a trustor. The homeowner is the trustor, because he or she is “trusted” with the capital and the property. The lender, who receives the profit in terms of interest payments, is the beneficiary. In addition, there is a third-party involved that holds the deed on the property in trust until the loan is satisfied (see the discussion of non-judicial foreclosure below). This structure is preferred in Missouri, and though it is available in other states, it is less common.

Mortgage Loan Options

As of 2017 the conforming loan limit across the United States is set to $424,100, with a ceiling of 150% that amount in areas where median home values are higher. High local affordability makes the $424,100 ceiling apply statewide for single unit homes. Dual unit homes have a limit of $543,000, triple unit homes have a limit of $656,350 & quadruple unit homes have a limit of $815,650. People buying premium properties in the Kansas City metro area may be above these thresholds, requiring a jumbo loan. Jumbo loans typically have a slightly higher rate of interest than conforming mortgages, though spreads vary based on credit market conditions.

Fixed Rate Mortgages – The fixed rate mortgage is still the most common type of mortgage in use across the country and in Missouri. While the most common term is 30 years, there are many mortgages written for 15-year terms as well. For those interesting in understanding existing mortgages, it should be noted that many 30-year mortgages have recently been modified under the terms prescribed by various federal programs; these were introduced to help stem the tide of foreclosures and slow the rate at which lenders were being forced to write-off loans.

Adjustable Rate Mortgages (ARMs) – Adjustable rate mortgages have received much of the blame for the real estate crisis of the last several years. The basic mechanics of this type of loan is that an initial rate is set by the bank until the first reset date. At this point, the interest rate due on the loan is linked to some nationally available rate like the prime rate. The initial rate tends to be lower because the lender is somewhat protected by the reset feature – if rates rise, lenders can earn current market rates. The problem that was created was that the initial rates were often set artificially low, allowing homebuyer to purchase homes they had no hope of affording after the first reset date. When this happened, many borrowers defaulted, exacerbating the issues in the market.

This type of mortgage is most appropriate for homebuyers who expect to move again quickly. The initial rates on these loans tend to be lower than on fixed rate mortgages. As a result, if the loan has a maximum increase amount per year, it will take some time for a break-even line to be passed. For example if a 7% fixed rate is compared to a 5% 1-year ARM with a 1% maximum rate rise, it will take 5 years to pass the break even line. This means that after five years, if the ARM increases by the maximum allowable amount every year, it will become more expensive after five years. If a homeowner plans to move before this period has lapsed, the ARM is less expensive. The danger is that circumstances will change and the homeowner will be stuck with a now higher rate.

Interest-Only Mortgages – Under this type of mortgage, the borrower is only responsible for making interest payments for an initial period that can last as long as ten years. When the principal payment period begins, however, this type of mortgage will often reset to a significantly higher monthly payment amount. For this reason, these types of mortgage have become far less common or are priced with less attractive terms.

Flexible Payment Mortgages – All but eliminated, this type of mortgage left it to the borrower to decide how much to pay on a monthly basis. While there are guidelines and limits, a borrower could choose to make an interest payment, a principal and interest payment, or even no payment at all. Lenders believed their protection was in the infallible real estate market. As prices have collapsed, this option has been removed.

Home Equity Lines and Loans – Each of these options permit a homeowner to borrow against the value of their homes. While a line is a revolving line of credit (like a credit card) and a loan is a lump-sum, these options are more expensive than traditional mortgages, but do serve a purpose. For borrowers facing conforming loan size limits ($417,000), the combination of a home equity loan and conforming mortgage may be more affordable than a single jumbo loan.

USDA loans can help people with low incomes in rural parts of the state qualify for a subsidized low-interest loan.

Natural Disasters

Flood Insurance

Homeowner's insurance policies typically do not cover flooding. Most of the state of Missouri is considered to have a very low flooding risk. Counties with relatively elevated risks are listed below.

  • Low risk: Cape Girardeau, Cass, Christian, Cole, Pulaski, Saint Clair, Webster
  • Moderate risk: Bates, Buchanan, Franklin, Henry, Jasper, Jefferson, Lincoln, Taney
  • High risk: Scott
  • Very high risk: Iron

Home buyers with mortgages in high-risk areas are required to buy flood insurance. Most flood insurance policies are sold by the United States federal government through The National Flood Insurance Program. Under-priced flood insurance in high-risk areas act as a subsidy to wealthy homeowners.

The NFIP does not charge nearly enough to cover the expected costs of its liabilities. The assessments are not sufficient to build any buffer to cover an extraordinary year, such as what occurred with Hurricane Katrina in 2005 or Hurricane Sandy in 2012. Because homeowners don€™t incur the full cost of building in a flood zone we end up with more houses there than if homeowners incurred the full cost of the flood risk, which exacerbates the government€™s costs in the next disaster.

Homeowners who live in lower risk areas & are not required to purchase flood insurance heavily cross-subsidize homeowners who are in areas where floods are more common.

Earthquakes

Most of Missouri has a very low earthquake risk. The southwest edge of the state near where Arkansas, Illinois, Indiana, Kentucky, Tennessee, and Missouri converge there is a fault line which leads to moderate to high earthquake risk. Here is a list of counties with a risk profile above very low.

  • Low risk: Carter, Iron, Jefferson, Madison, Reynolds, Ripley, Sainte Genevieve, Saint Francois, Saint Louis, Saint Louis City, Wayne
  • Moderate risk: Bollinger, Butler, Cape Girardeau, Dunklin, Pemiscot, Perry, Scott, Stoddard
  • High risk: Mississippi, New Madrid

Standard rental and homeowner insurance policies typically do not cover earthquake damage, though they usually cover losses caused by fires which resulted from an earthquake. You can supplement your homeowner's insurance with an earthquake policy.

Tornadoes

Much of the state is considered to have a moderate to high tornado risk. The area near the Illiois border south of St. Louis has a very high tornado risk. A basic homeowners policy should cover financial damages from tornadoes.

Hail

Hail damage is exceptionally common across the state. Damage from hail is typically covered by home insurance policies.

Missouri Foreclosure Procedures and Regulations

  1. Missouri lenders tend to prefer the deed of trust structure for lending money to home buyers. This permits a non-judicial foreclosure in the event of a default. If this occurs, because of the structure, the lender asks the trustee to sell the property based on the terms of the trust created in the mortgage.
  2. If a judicial foreclosure is used, meaning that a traditional lien mortgage was used when the loan was made, the lender must file suit against the borrower. The court then oversees the foreclosure process.
  3. When the lender uses the foreclosure by trustee sale approach, Missouri law requires that the sale begin with publication of the sale. The initial paperwork that must be completed prior to the sale can take as long as 60 days. Once this is completed, the publication must be made for a minimum of 10 days. This is done to ensure that a sufficient number of bidders come to the sale. If there is healthy bidding, the price will be closer to fair market value. This makes it more likely that the sale price will cover the amount of the loan. As a recourse sate, getting top dollar for a forced sale is particularly important to the defaulting homeowner.
  4. While the right of redemption is strictly limited in Missouri, the redemption period lasts for 365 days after the sale. This allows the homeowner to repurchase the home at the sale price. This option is only available in Missouri if the winning bidder at the sale was the primary lender. The lender would buy the house at auction if it believes that the fair market value is enough higher to make it a good investment. The law is written this was to protect homeowners – if the lender could purchase the home below market value and then flip the house, homeowners would lose the benefits of any equity. The law is designed to protect the interests of all parties involved.