Homeowners are individuals who own residential properties such as houses or apartments that they live in or rent out. They have legal rights over their properties, including the ability to sell them or use them as collateral for loans.
Related terms
Mortgage: A mortgage is a loan specifically used to purchase a property, where the property itself serves as collateral. Homeowners often take out mortgages to finance their homes.
Subprime Mortgage: A subprime mortgage is a type of mortgage given to borrowers with low creditworthiness or a high risk of defaulting on payments. It played a significant role in the 2007-2008 financial crisis, as many homeowners with subprime mortgages were unable to keep up with their payments.
Housing Bubble: A housing bubble refers to an unsustainable increase in housing prices, often fueled by speculation and excessive lending. When the bubble bursts, it can lead to a sharp decline in property values and financial instability for homeowners.