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.

RELATED TERMS
  1. Home Equity

    Home equity is the calculation of a home's current market value ...
  2. Reverse Mortgage

    A reverse mortgage is a type of mortgage in which no repayment ...
  3. First Mortgage

    A first mortgage is the primary lien on the property that secures ...
  4. Mortgage

    A mortgage is a debt instrument that the borrower is obliged ...
  5. Purchase Mortgage Market

    A mortgage market for home financing transactions. The primary ...
  6. Mortgage Interest

    Mortgage interest is the interest paid by homeowners on the financing ...
Related Articles
  1. Personal Finance

    The Benefits of a Mortgage in Low Rate Environment

    The idea of simply paying off the mortgage has become an antiquated way of thinking due to the current low interest rate environment.
  2. Investing

    Why You Shouldn't Pay Off Your Mortgage

    With today's historically low interest rates, it may make more sense to keep your 30-year mortgage.
  3. Personal Finance

    5 Signs a Reverse Mortgage Is a Bad Idea

    Here are the key situations when you should probably pass on this type of home loan.
  4. Personal Finance

    5 Reasons To Save For A Big Mortgage Down Payment

    You may be anxious to buy a home, but taking time to save a large down payment has numerous advantages.
  5. Personal Finance

    Mortgage points: What's the point?

    Do you want to buy a home with less cost? Mortgage point can help you to save some of the cost. Learn how to pay less for your home.
  6. Personal Finance

    Top 6 Mortgage Mistakes

    These common errors could end in foreclosure.
  7. Investing

    What Is the True Cost of Owning a Home?

    Buying a home is part of the American dream. But what happens when you add up all the costs associated with buying a home?
  8. Retirement

    Advisors: 5 Ways Clients Can Use Housing Wealth in Retirement

    Here are five, often overlooked, ways home equity can be used as a source of retirement income.
  9. Personal Finance

    Is a Reverse Mortgage Right for You?

    There are pros and cons to consider before taking out a reverse mortgage on your home.
Trading Center