Home equity = value of the home - unpaid balance of mortgage. So when home value went up in the past few years while the unpaid mortgage balance is decreasing, home equity is up. Aggressive people can take loan using that equity as collateral to spend. Now home equity is mostly negative and these people still need to pay back the home equity loan. Yes, it is possible that someone can have both loans and most of them are suffering now.
【在 t*******d 的大作中提到】 : Home equity = value of the home - unpaid balance of mortgage. : So when home value went up in the past few years while the unpaid mortgage : balance is decreasing, home equity is up. Aggressive people can take loan : using that equity as collateral to spend. Now home equity is mostly negative : and these people still need to pay back the home equity loan. : Yes, it is possible that someone can have both loans and most of them are : suffering now.
s*i
25 楼
my HELOC is 2.25%, tax deductible. I put the money in same bank checking account, 5% APR...
【在 s****i 的大作中提到】 : my HELOC is 2.25%, tax deductible. : I put the money in same bank checking account, 5% APR...
s*i
27 楼
in the past several years some lenders were willing to do more than 100% on HE.
【在 t*******d 的大作中提到】 : Home equity = value of the home - unpaid balance of mortgage. : So when home value went up in the past few years while the unpaid mortgage : balance is decreasing, home equity is up. Aggressive people can take loan : using that equity as collateral to spend. Now home equity is mostly negative : and these people still need to pay back the home equity loan. : Yes, it is possible that someone can have both loans and most of them are : suffering now.