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What is a Home Debtor?
In contrast to the term “home owner,” home debtor is reserved for those who will seemingly never be able to pay off the mortgage(s) on their home, or who have already defaulted.
Most Americans live in homes that they pay on, but are still primarily owned by the bank that loaned them money. Banks have insurance to protect them against mortgage defaults. Home mortgage loans are the primary way that Americans by homes today.
It is exceedingly rare for more than 20% of a home to be paid off at the point of sale, and most people start with significantly less equity than that — if any. When the costs of the home become overwhelming to the home-buyer, and they no longer have advantageous options for refinancing or paying off their home, they are sometimes referred to as home debtors.
Many Americans lost their homes in the wake of the housing bubble in 2008, when the value of their homes shrunk significantly and they found themselves underwater on their home mortgages. The Federal government started the HARP and HAMP programs in 2009 to help struggling Americans get approved for a refinanced loan.
The Housing and Recovery Act and other legislation has sought to alleviate some of the pressure on home debtors.
What is an Annuity?
Annuities are financial products sold by insurance companies, and they are designed to protect against life expectancy
What is the “Life Only” Option on Annuities?
Choosing the Life Only option will turn your annuity into income that will be paid only to you for as long as you live
What are Asset-Backed Securities?
The assets within the ABS generally tend to consist of different kinds of debt receivables, such as credit cards...
What are Earnings Estimates?
Earnings estimates are generally consolidated estimates which are averages of the estimates given by a number of...
What is a No-Fee Mortgage?
No-fee mortgages are synonymous with no-cost mortgages, where the closing costs are paid by the lender, broker, or bank
What is Operating Margin?
Operating margin is a ratio (expressed as a percentage) that indicates how much a company makes for each dollar of sales
Can I Take a Loan From My Pension Plan?
Generally this won’t be an option that your plan allows, but the IRS has approved it if the employer wants to
What is the Federal Reserve Bank?
The Federal Reserve Bank is a 12-bank system in the United States that plays the role of the country’s central bank
Trader Clubs
What is Sharpe Ratio?
Sharpe Ratio reduces the two measures of mean and variance into one value that to indicate how much return is expected