An underwater mortgage is when a homeowner owes more on a mortgage than your house is worth. For example, your home is worth $250,000, but you owe $300,000 on the mortgage; that means you are underwater, or upside-down on your mortgage.
Home Equity Mortgage. What Does It Mean To Be Underwater On Your Mortgage. Post By Robinson . Post navigation. Previous previous post: Best Place To Get Preapproved For A Home Loan. Next Next post: mortgage rates san Francisco. Recent Posts. fast home equity loans;
Being underwater means, as a homeowner, you owe more on your mortgage than the house is worth. With the current economic issues, they (CNN Money) say one out of five homeowners are in this situation.
But without knowing what you have in savings, and the prospects of either you or your husband finding better-paying jobs (a tall order these days), it wouldn’t be fair to tell you to walk away from.
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What does it mean when it say that your mortgage is ‘underwater’? – An "underwater" home or mortgage is when you mortgage balance on the home is higher than the fair market value of the home. Houses have been known to decrease in value and if your house went down in value to $265,000, it means that the mortgage is underwater because you now owe $5000.
Freedmont mortgage ceo carl Delmont explains the good and bad of today’s mortgage climate, including what it means when you’re upside-down on your home investment.
What is ‘Underwater Mortgage’. An underwater mortgage is a home purchase loan with a higher principal than the free-market value of the home. This situation can occur when property values are falling. In an underwater mortgage the homeowner may not have any equity available for credit. An underwater mortgage can potentially prevent a borrower.
This makes it impossible to sell your home in case you are not able to pay the mortgage anymore, or you have lost your job, etc., unless you pay the remainder from your own pocket. Thus, underwater mortgages can leave the owner high and dry, since he will be left with more debt on his house that what it would currently be valued in the market.
min credit score to buy a house What Credit Score Do You Need To Buy A House? – · The federal housing administration (fha) now requires a minimum FICO® score of 580 if you want to qualify for the low down payment advantage. The US Department of Agriculture (USDA) does not set a minimum credit score requirement, but most lenders require a score of at least 640. Veterans Affairs (VA) loans have no credit score requirement.apr vs interest rates 4 days ago · APR vs. Interest Rate with Your Mortgage The interest rate is the nominal cost, expressed as a percentage, of borrowing money. Your mortgage rate is just the number used to let you know how much.