Quote:
Originally Posted by blankall
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?
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In the way that you still owe $500,000. Just because you could pay off the debt if you sold the house doesn't mean the debt doesn't exist. The house is only worth $1 million when someone buys it from you. Until then, it doesn't help with the debt.