Home Debtor

DEFINITION of 'Home Debtor'

An individual who holds a large mortgage with little or no equity in the home. The term "home debtor" is often used to describe those who will likely never be able to pay off their mortgage because of the costs associated with home ownership, such as property taxes, mortgage payments, insurance and necessary repairs.

BREAKING DOWN 'Home Debtor'

Unfortunately, millions of individuals fall into the category of home debtor, and with the high costs of owning a home, this term is often more appropriate than the commonly used word "homeowner." It is important for any person who is looking to buy a house to understand the underlying costs of the purchase and to ensure that they can afford to make the required payments.

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RELATED FAQS
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    For homeowners of a certain age who wish to stay in their homes but are finding it costly, a reverse mortgage could be the ... Read Answer >>
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    Understand what the loan to value ratio is, how the ratio is calculated and learn how it has an impact on your mortgage payments ... Read Answer >>
  3. How can I avoid paying private mortgage insurance (PMI)?

    Private mortgage insurance (PMI) is an insurance policy that protects lenders from the risk of default and foreclosure, and ... Read Answer >>
  4. How can a reverse mortgage help wealthy and poor retirees?

    Learn about the ways a reverse mortgage can help both wealthy and poor retirees by allowing them to borrow against their ... Read Answer >>
  5. Why does the loan-to-value ratio matter?

    Learn how the loan-to-value (LTV) ratio is calculated, and why this metric is important to lenders when evaluating a home ... Read Answer >>
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    Unlock the money tied up in your home with alternatives to a reverse mortgage, such as downsizing, selling your home or refinancing. Read Answer >>
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