The New Negative Equity

Some of us simply have no concept of negativity. Bowl half full is bad enough; empty is catastrophic. Negative food? Huh?!!

Anyway, Mark Hanson (Mr. Mortgage) proposes that we should really think of anywhere from 6-15% equity as being effectively zero, and anything less than that as negative. The 6% (to pay the Extortionator) figure is obvious to all but the least financially literate, like my ball-crazy jock brother. And then, sure, there are moving costs to contend with. Anyway, bottom line is that, upon reflection, tons more folks are effectively locked into their present residences than might be immediately obvious.

Anyone interested in such should just read the whole thing here...