Homestead mailing list

[Lisa Perry <lkvp AT floydva.net>]

Toni Hawryluk wrote:

> Marie typed :
> >If financial institutions had a penalty for offering individuals more 
> credit
> than they should have, they might back off a bit.
I like that idea.  Too many lenders are willing to do up to 125% 
refinance loans.  I have never done one for my clients and never will, I 
think it should be against the law (not that we necessarily need more 
laws) to owe more on your house than it is worth.  Wish I could remember 
the statistic I read just yesterday, x billions of dollars now owed on 
home equity lines of credit (which are not fixed rate loans--the rates 
rise as the Fed raises rates!).  People have less equity in their homes 
than ever before, the article was addressing the concern of future 
borrowing power for any emergency, retirement, etc. when you've used up 
your equity.

Lisa