You might have heard what I heard… that learning English is pretty hard for foreigners. I’m sure part of the reason is that we frequently have words and expressions that mean the same thing.

A case in point:

Negative Equity Mortgage = Underwater Loan = Upside-Down Loan

Whatever you call it, it represents a situation in which a person or business owes more for an asset than the asset is worth in the market.

If you buy a new car for $20,000, making a $2,000 deposit and borrowing $18,000, you’re placing yourself underwater as the resale value of that car drops 15-20% the minute you drive off the lot.

If you took out a mortgage that was more than 100% of the purchase price of your home, you immediately put yourself in an upside-down loan.

And if you have a mortgage that in 2005 was even as much as 20% less than the resale value of the house, since then you probably moved from a positive equity status to a negative equity mortgage status.

Whether you fear that it’s going to take 5 to 10 years to gain some equity in your asset, or whether you’re relying on a surge in inflation to do that quicker, you’ve learned that debt in itself, though a very worthwhile instrument, can put your whole financial future at risk. If you want to reduce that risk, and remove it fast, then the Money Merge Account® service from United First Financial® is for you. Contact us now to see if you qualify to pay off your debt quicker. Being in an underwater loan, an upside-down loan or having negative equity does not exclude you from benefiting from this service.