eli5 What does it mean to be “upside down” on your home loan and how does it happen?
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It means you owe more on your mortgage than the house is worth… happens when a house goes down in value, you made a small down payment and haven’t lived there long enough to make much of a dent in paying down the mortgage.
If you bought a house last year with a 3% down payment and it has gone down in value 5%, you’d be upside down.
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