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homestead - Re: [Homestead] Perfect Storm

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  • From: Gene GeRue <genegerue AT ruralize.com>
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] Perfect Storm
  • Date: Tue, 10 May 2005 13:58:55 -0700


What I mean is this: if people are using the equity in their home to make
general purchases, then they no longer have that equity in their home, do they?

Of course.

Else all they are doing is making a loan to themselves. They are kiting
their own checks to themselves, as it were. Seems to me that this would add to the 'perfect storm' likelihood.

How so? They are acquiring cash for any purpose they choose by refinancing at a lower interest rate than they had before. The savings in interest often allows the same payment.








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