Definition of Underwater:
Underwater means: Submarine is a term used to designate financial agreements or assets that have a value less than theoretical value. This item may be a non-money call option where the stock is currently trading above the option strike price. However, in general, the term is used to refer to a home or other significant asset that has outstanding mortgages or debts on assets that exceed the value of the asset.
- Underwater means that the asset is out of cash, an options trading term, but more generally it refers to borrowing an asset that exceeds its value.
- The homeowner sinks when the mortgage is more than the value of the home.
- Underwater conditions often, but not always, can be avoided by finding the right deal and creating a protective margin between asset value and loan size.
Meanings of Underwater
Located, located or held below the surface of water.
(Debt) which is more than the current market value of the loan.
Sentences of Underwater
Seal spent a lot of time underwater
There is an underwater volcano in this area
Underwater mortgage epidemic
Synonyms of Underwater
undersea, covered with water, subaqueous, sub-aquatic, under water, submarine, flooded