But a word of caution: refinanced loans and home equity loans tend to be recourse loans.
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Now, for many years, credit cards and home equity loans papered over this harsh reality.
Following the success of this venture, Discover is also looking to branch out into home equity loans.
The proceeds of home equity loans are frequently utilized to purchase cars, pay tuition or take leisure trips.
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For that reason, Congress should definitely eliminate the availability of the MID for second homes and home equity loans.
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Mortgages can come with fixed, variable and adjustable interest rates, and typically offer longer terms of repayment than home equity loans.
The Non-Strategic Assets Portfolio segment offers commercial residential development loans, cross-border leases, consumer brokered home equity loans, retail mortgages, non-prime mortgages, and residential construction loans.
Most home equity loans have fixed interest rates and 15-year terms.
Housing bubbles arise when dumb bankers are willing to issue six-figure mortgages without asking questions and make home equity loans at inflated rates.
Similarly, Congress should prohibit taxpayers from taking the MID on home equity loans, since they do not promote home ownership in most cases.
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AmeriCredit hopes to augment its growth by paying for referrals from Chase Manhattan, a big lender to good-credit buyers, and by dabbling in home equity loans.
It has approximately 22, 000 residential mortgages and home equity loans, of which only 249 loans were past due 30 days and less than 100 were in foreclosure.
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The prosperity was built on little more than a housing bubble and on financial speculation -- people maxing out on their credit cards, taking out home equity loans.
This assumption was based on the stable underpinnings of auto demand--cheap financing by car companies (and by home equity loans) and a customary replacement cycle of three years.
The application of the MID to home equity loans is simply a circumvention of the Congressional decision, taken years ago, to prohibit tax deduction for interest on consumer loans.
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Many included gimmicks like instant home equity loans to offset down payments, or required scant documentation, making them popular with buyers who were stretching to purchase homes in a red-hot real estate market.
One involves a major sticking point for many servicers who have tried to modify mortgages to more affordable terms: How to handle the millions of homeowners with second mortgages or home equity loans.
So people are having to use their credit cards or home equity loans just to try to make the mortgage, or pay tuition, or put gas in the car, or food on the table.
And finally, the Washington Post reported that some prospective college students are choosing lower-cost options as their parents find it harder to get home equity loans or private loans to pay for their education.
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The cyclical challenges of a slumping housing sector, along with the accompanying slowdown in home equity loans and lines of credit, have long since been discounted in the stock prices of both Home Depot and rival Lowe's, analysts say.
It got papered over because there was a lot of cheap credit out there so people were just able to keep up by getting more credit cards and taking out more home equity loans, but the long-term trends were not good.
Even jobless entrepreneurs are having a rough time in this economy, points out the Times, because many of these businesses are financed through home equity loans, and many homeowners are still struggling with the fact that their home values have plummeted.
Because home equity loans suddenly exploded after a 1986 tax revision, because credit cards were deregulated and because of a lot of these things and a lot of things dealing with deregulation, credit became very available to people and that's where I think most people lost their saving habit.
The cyclical challenges of a slumping housing sector, along with the accompanying slowdown in home equity loans and lines of credit, have long since been discounted in the stock prices of both Home Depot (nyse: HD - news - people ) and rival Lowe's (nyse: LOW - news - people ), analysts say.
It's also going to require that we look at new models for where future growth is going to come from, because one of the I think key understandings coming out of this past financial crisis is that a lot of our growth was debt-driven -- credit cards being maxed out, home equity loans being taken out to finance a lot of purchases.
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And, in fact, in the first G20 visit that I made, in April to England, I was very clear to the rest of the world that what they cannot rely on is an economic model in which the United States borrows -- consumers in the United States borrow, we take out home equity loans, we run up credit cards to purchase goods from all around the world.
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From there, in fact, maybe even a greater piece of information is the credit report, because the credit report, obviously, not only gives a Social Security number and personal information about the individual, but it also goes on to indicate where the person has their holdings, whether they have home equity loans, and effectively, they can obtain driver's licenses from that and then they can get open bank accounts.
Many banks have transferred credit-card loans to home-equity loans, which are tax-deductible for the borrower and offer collateral for the lender.
It stuffs the monthly account statements with encouragement to take out car loans as well as home-equity loans and other mortgage debt.
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