Do You Have An Underwater Mortgage? Here Are Your Options
Author:
Patrick ChismNov 9, 2023
•6-minute read
Do you owe more money on your home than your property is worth? If so, you have an underwater mortgage. The situation can be a headache for homeowners, particularly if you want to sell your property or refinance.
We’ll take a closer look at what happens if you are upside down on your mortgage and how to pay attention to indicators you’re heading under. We’ll also offer you a few tips on how to handle an underwater mortgage.
What Does Underwater Mortgage Mean?
An underwater mortgage, sometimes called an upside-down mortgage, is a home loan with a higher principal than the home is worth. This happens when property values fall but you still need to repay the original balance of your loan.
Mortgages aren’t the only loans that can end up underwater. Auto loans, motorcycle loans and houseboat loans can also go underwater.