Quote:
Originally Posted by mookiemookie
Oh, no no, we sold the home equity line of credit as a smarter alternative to a credit card. My favorite line to use was "why pay 15-20% on a credit card, when you could open a home equity line of credit and pay 5%?" It worked well.
But to use the Nuremburg defense, I was young and stupid then and only doing what they told us to do. Now I'm no longer as young, but still stupid.  |
Truth be told Mookie, in 1989 I got a home loan on my first home. I had to fork over $13,000. I was provided a loan that was called ARM. A stupid adjustable rate loan. As you said, Nuremburg, young and dumb. I signed not really fully understanding the loan terms. Within 12 months the loan "adjusted" to a higher interest rate and mortgage went up a additional $175.00/month. I learned quickly/the hardway and refinanced to a conventional loan even quicker. For me, I was in a position to do that. For the others, not so much and the bubble bursts. As far as home equity, God love my mother, she always said you cannot live off your home equity. Do not refinance repeatedly looking to pay off bills. People did just that, refinanced several times. Or, some got second mortgages!