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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.
I think this may also be called Negative Equity.
If you think you may be underwater, there are a few options to consider...
First, if you aren't planning on moving for a while - like 5+ years - don't worry too much. You are rebuilding your equity with every payment and they say home prices will eventually rebound.
You could also think about refinancing. The government's new mortgage-relief program let's people that owe up to 105% of their home's value to get a loan (just as long as the current one is held by Freddie Mac of Fannie Mae and they prove they can afford the payments).
If you're having trouble making payments, you may be able to get your loan restructured. Or, as a last resort, there's a short sale. That's when your lender let's you sell the house for less than you owe. This, though, could really drop your credit score by as much as 200 points. That could hurt your chances of getting another loan at terms your can afford.
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∙ 14y ago
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What does LP mean in the mortgage industry?
What does LP menas in mortgage terms
Where can I find online tips for refinancing?
Check with your mortgage company, as each mortgage company will have different obligations that you need to fulfill before you can refinance your mortgage. For example, you might not be allowed to be "underwater," or you might have had to make your payments on time for at least 6 months before refinancing.
What is and underlying mortgage?
what does it mean when the mortgage company says they must read the underlying of the mortgage? I do not quit understand what that means.
What does the term freedom mortgage mean?
Freedom Mortgage is not a just a term, but is actually a mortgage company. Freedom Mortgage Corporation is a private full-service mortgage lender that is licensed in all 50 states.
Does a mortgage pre approval guarantee a mortgage loan approval?
Pre-approval for a mortgage does not guarantee that you will be approved a mortgage loan. However it does mean that it is very likely that you will be approved when you apply.
How many mortgage loans are currently underwater?
In the United States there are probably hundreds of thousands of mortgages that are underwater. However, the true number is not known.
What is the term mortgage offset mean?
The term mortgage offset mean a flexible type of mortgage that allows one to reduce their rates and balance on loans and mortgage debts. This type of mortgage is uses more commonly in England.
What does LP mean in the mortgage industry?
What does LP menas in mortgage terms
Where can I find online tips for refinancing?
Check with your mortgage company, as each mortgage company will have different obligations that you need to fulfill before you can refinance your mortgage. For example, you might not be allowed to be "underwater," or you might have had to make your payments on time for at least 6 months before refinancing.
What is and underlying mortgage?
what does it mean when the mortgage company says they must read the underlying of the mortgage? I do not quit understand what that means.
What does the term freedom mortgage mean?
Freedom Mortgage is not a just a term, but is actually a mortgage company. Freedom Mortgage Corporation is a private full-service mortgage lender that is licensed in all 50 states.
Does a mortgage pre approval guarantee a mortgage loan approval?
Pre-approval for a mortgage does not guarantee that you will be approved a mortgage loan. However it does mean that it is very likely that you will be approved when you apply.
What does mortgage mean in a sentence?
A mortgage is a loan secured by real property. Sentence: My sister was able to qualify for a mortgage and purchase her first home.
What does BAR mean on a watch?
Pressure rating for underwater
What can one do about bad mortgages?
Bad mortgages can be frustrating. If you are underwater, there is little hope for turning it around. A short sale might be the best option to try and recover some money from your mortgage. If the mortgage rate is too high, you might consider refinancing.
What does it mean by mortgage prequalification?
Mortgage prequalification is a term used when an initial application for a mortgage as been approved. This will depend on the information your originally applied for a mortgage, and will be further confirmed if you found a home to purchase.
What does it mean to get a home loan?
It means you're getting a mortgage. For the definition of mortgage, see the related link below.
