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Underwater Mortgage
January 19, 2023
An underwater mortgage, also known as an upside-down mortgage, is a house loan with a principle that is more than the home's value. When property values decline, you still owe the original loan sum. Mortgages aren't the only kind of debt that might become underwater. Loans for automobiles, motorcycles, and houseboats may all fall underwater.
Related Topics
When Is the First Mortgage Payment Due?
What Does Foreclosure Mean?
What Is a HELOC Loan?
Loan Default
Financial Considerations (For First-Time Home Buyers)
Mortgage Loan Types
Payment and Debt Ratios
Home Value: Appraised, Estimated, Actual