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Old 08-29-2011, 12:01 PM   #25
Phanuthier
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Quote:
Originally Posted by blankall View Post
A mortgage is not debt unless you are underwater. It just means you have less equity in the home.

If the house is worth 1 million and the oustanding mortgage is 500k, you still own 500k in assets. In what possible way is that to be considered a debt?
How about by definition?
http://www.investorwords.com/1313/debt.html

If the house at $1M depreciates to $0.8M, you think you and the bank split the difference and you own $400k and the bank owns $400k?
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