Home Equity Loans Next Bailout?

Looks like we will not only pay for homeowners home but now their vacations, new cars, home improvements and anything else people bought with their home being the bank.

http://www.cnbc.com/id/29513414

Scooby01_98 wrote:Looks like we will not only pay for homeowners home but now their vacations, new cars, home improvements and anything else people bought with their home being the bank.

http://www.cnbc.com/id/29513414

hehe, I guess that depends on what your definition of "will" will be!

I think we "will" emerge stronger.

I thought about this topic the other day... A lot of banks issue home equity loans as a way to allow a zero down mortagage without PMI... eg You have 10,000, the PMI cutoff is 20% equity, the back will issue a conventional mortgage for $80,000, and a HELC for $10,000... that puts you above the threshhold for PMI...

So it's not all boats and cars and such...