Quote:
Originally Posted by Barry-xlovecam
The current depressed housing values make low cost refinancing difficult or impossible for many people. The ::false:: prosperity of the last decade was made by the ability to tap home equity for consumer spending. e.g., re-mortgage your home to buy a automobile :P
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I personally never knew anyone who got a second mortgage on their home for a car. Or for anything else EXCEPT home improvement. I had a buddy who did one to get his hands on a quick 30 grand to build a swimming pool. He borrowed on his home for that.
But I didn't know anyone that just took out a loan on their home to go get a car. I'm sure that a lot of folks did do the home improvement loans though. That's a very reasonable thing to do. Borrow against your own equity to improve the property and raise the value of it.
Unfortunately...if you borrowed that money in 2007 or early 2008 right before the free-fall...you got destroyed.