House Swap

DEFINITION of 'House Swap'

A practice in which the owners of a home allow the use of that property in exchange for the use of another party's home. A house swap does not involve the sale of a home; rather, it allows a homeowner to "borrow" someone else's home. It can be some on a temporary or semi-permanent basis. House swaps typically involve an exchange in property use for the purpose of vacation. They are also options for homeowners who need to relocate due to a change in job, but are unable to sell their home due to a depressed housing market.

BREAKING DOWN 'House Swap'

Homeowners who do not want to give up a piece of property but wish to stay in another area may enter into a house swap agreement. For example, the owner of a condo in Miami may enter into a house swap agreement with the owner of a home in Denver. The Miami homeowner may like to ski in the winter, while the Denver homeowner may like to visit the beach in the winter.




RELATED TERMS
  1. Forward Swap

    A swap agreement created through the synthesis of two swaps differing ...
  2. Swap Bank

    A financial institution that acts as an intermediary for interest ...
  3. Reverse Swap

    An exchange of cash flow streams that undoes the effects of an ...
  4. Homeowners Insurance

    A form of property insurance designed to protect an individual's ...
  5. Swap

    A derivative contract through which two parties exchange financial ...
  6. Cross-Currency Swap

    An agreement between two parties to exchange interest payments ...
Related Articles
  1. Personal Finance

    5 Ways Overvaluing Your Home Can Hurt You

    Getting top dollar for your home is everyone's goal, but overvaluing your home can hurt its chances of being sold.
  2. Personal Finance

    Homeowners Overestimating the Value of Their Homes

    A new survey by Quicken Loans shows homeowners often have a lofty expectation of their home's value.
  3. Investing

    Can't Sell Your Home? Rent It

    Find out how to profit from your property when the housing market dips.
  4. Retirement

    How Does A Reverse Mortgage Work?

    A homeowner who’s at least 62 years old can use a reverse mortgage to tap into her home’s equity for money. The house serves as the loan’s collateral. The loan is repaid when the homeowner dies, ...
  5. Trading

    Currency Swap Basics

    Find out what makes currency swaps unique and slightly more complicated than other types of swaps.
  6. Personal Finance

    Insurance Tips For Homeowners

    Use these simple ideas to save money and get better coverage for your house.
  7. Managing Wealth

    Selling Your House Before an Interest Rate Hike?

    Learn about the potential advantages and disadvantages of selling a home before or after an increase in the national interest rate.
  8. Personal Finance

    Buying a House? 6 Other Costs You Should Factor In

    When purchasing a home, you need to factor in more than just the list price of the home. From closing costs to maintenance, there are many other expenses.
  9. Personal Finance

    How to Price Your Home Like the Pros

    Selling a house without using a realtor can be a difficult task. Thankfully the internet has made it easy to list a home like the pros do.
  10. Investing

    Different Types of Swaps

    Investopedia explores the most common types of swap contracts.
RELATED FAQS
  1. Is it a good idea to add a reverse mortgage to your retirement strategy?

    A reverse mortgage can be a great way to increase retirement income. Does it work for everyone? What happens after a homeowner ... Read Answer >>
  2. What would motivate an entity to enter into a swap agreement?

    Learn why parties enter into swap agreements to hedge their risks, and understand how the different legs of a swap agreement ... Read Answer >>
  3. When was the first swap agreement and why were swaps created?

    Learn about the history of swap agreements, the first swap agreement between IBM and the World Bank, and how swaps have evolved ... Read Answer >>
  4. How are swap agreements financed?

    Learn how swap agreements are now cleared by swap execution facilities and require the use of collateral margin to hold, ... Read Answer >>
  5. Can bond traders trade on interest rate swaps?

    Read about interest rate swaps and why these transactions are performed by institutional actors in the bond market, not individual ... Read Answer >>
  6. What's the difference between renter's insurance and homeowner's insurance?

    Renters insurance and homeowners insurance offer similar benefits for occupants and homeowners, but in different ways and ... Read Answer >>
Hot Definitions
  1. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  2. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  3. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  4. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  5. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  6. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
Trading Center