[citydweller]

Could an unintended consequence of helping people stay in their overpriced homes be a sharp drop in consumer spending? These families will be stretching to make their payments and no longer have access to HELOC money. If they were forced to leave their house (through foreclosure), and had to go rent something they could afford, then they would have more disposable income for eating out, vacations, etc.

I guess what I’m trying to say is that the kindest thing the government could do is to allow these people to get out of the housing trap they’re in and allow them to begin “starting over” that much sooner.

[citydweller]

Could an unintended consequence of helping people stay in their overpriced homes be a sharp drop in consumer spending? These families will be stretching to make their payments and no longer have access to HELOC money. If they were forced to leave their house (through foreclosure), and had to go rent something they could afford, then they would have more disposable income for eating out, vacations, etc.

I guess what I’m trying to say is that the kindest thing the government could do is to allow these people to get out of the housing trap they’re in and allow them to begin “starting over” that much sooner.

[citydweller]

Thanks nla, you’re right it wasn’t just a typo. I debated between the two spellings and chose the wrong one…dang!

[citydweller]

Thanks nla, you’re right it wasn’t just a typo. I debated between the two spellings and chose the wrong one…dang!

[citydweller]

Thanks nla, you’re right it wasn’t just a typo. I debated between the two spellings and chose the wrong one…dang!

[citydweller]

Thanks nla, you’re right it wasn’t just a typo. I debated between the two spellings and chose the wrong one…dang!

[citydweller]

Thanks nla, you’re right it wasn’t just a typo. I debated between the two spellings and chose the wrong one…dang!

[citydweller]

Based on my experience this morning, I would have to say the answer to your question is “No”.

I got a HELOC with B of A in 2003, when my condo was appraised at about 35% more than it is worth now. I spent part of what was available to me, then locked the rate on that portion that I had borrowed (at 6.5%, when the adjustable rate would have been just 4.25%, but is now around 7.75%). I set up an automatic payment plan where my monthly payments were just deducted from my checking account.

So, today I called their customer service line to tell them that I would like to start making additional payments to pay down the principle. Before she would make the transfer she wanted to know if I was aware that I had X amount of dollars available!!! and for a limited time only, any money I borrowed would only be charged 6.25%!!!! until March of 2008!!!

What part of “paying down principle” didn’t she get? Why would I go from wanting to pay down my loan to wanting borrow even more? I guess some people would find 4 months of 6.25% interest too hard to resist.

And getting back to your question, if I did decide to borrow the X amount of dollars available to me, I would certainly be upside down, owing more than I could sell my condo for.

[citydweller]

Based on my experience this morning, I would have to say the answer to your question is “No”.

I got a HELOC with B of A in 2003, when my condo was appraised at about 35% more than it is worth now. I spent part of what was available to me, then locked the rate on that portion that I had borrowed (at 6.5%, when the adjustable rate would have been just 4.25%, but is now around 7.75%). I set up an automatic payment plan where my monthly payments were just deducted from my checking account.

So, today I called their customer service line to tell them that I would like to start making additional payments to pay down the principle. Before she would make the transfer she wanted to know if I was aware that I had X amount of dollars available!!! and for a limited time only, any money I borrowed would only be charged 6.25%!!!! until March of 2008!!!

What part of “paying down principle” didn’t she get? Why would I go from wanting to pay down my loan to wanting borrow even more? I guess some people would find 4 months of 6.25% interest too hard to resist.

And getting back to your question, if I did decide to borrow the X amount of dollars available to me, I would certainly be upside down, owing more than I could sell my condo for.

[citydweller]

Based on my experience this morning, I would have to say the answer to your question is “No”.

I got a HELOC with B of A in 2003, when my condo was appraised at about 35% more than it is worth now. I spent part of what was available to me, then locked the rate on that portion that I had borrowed (at 6.5%, when the adjustable rate would have been just 4.25%, but is now around 7.75%). I set up an automatic payment plan where my monthly payments were just deducted from my checking account.

So, today I called their customer service line to tell them that I would like to start making additional payments to pay down the principle. Before she would make the transfer she wanted to know if I was aware that I had X amount of dollars available!!! and for a limited time only, any money I borrowed would only be charged 6.25%!!!! until March of 2008!!!

What part of “paying down principle” didn’t she get? Why would I go from wanting to pay down my loan to wanting borrow even more? I guess some people would find 4 months of 6.25% interest too hard to resist.

And getting back to your question, if I did decide to borrow the X amount of dollars available to me, I would certainly be upside down, owing more than I could sell my condo for.

[citydweller]

Based on my experience this morning, I would have to say the answer to your question is “No”.

I got a HELOC with B of A in 2003, when my condo was appraised at about 35% more than it is worth now. I spent part of what was available to me, then locked the rate on that portion that I had borrowed (at 6.5%, when the adjustable rate would have been just 4.25%, but is now around 7.75%). I set up an automatic payment plan where my monthly payments were just deducted from my checking account.

So, today I called their customer service line to tell them that I would like to start making additional payments to pay down the principle. Before she would make the transfer she wanted to know if I was aware that I had X amount of dollars available!!! and for a limited time only, any money I borrowed would only be charged 6.25%!!!! until March of 2008!!!

What part of “paying down principle” didn’t she get? Why would I go from wanting to pay down my loan to wanting borrow even more? I guess some people would find 4 months of 6.25% interest too hard to resist.

And getting back to your question, if I did decide to borrow the X amount of dollars available to me, I would certainly be upside down, owing more than I could sell my condo for.

[citydweller]

Based on my experience this morning, I would have to say the answer to your question is “No”.

I got a HELOC with B of A in 2003, when my condo was appraised at about 35% more than it is worth now. I spent part of what was available to me, then locked the rate on that portion that I had borrowed (at 6.5%, when the adjustable rate would have been just 4.25%, but is now around 7.75%). I set up an automatic payment plan where my monthly payments were just deducted from my checking account.

So, today I called their customer service line to tell them that I would like to start making additional payments to pay down the principle. Before she would make the transfer she wanted to know if I was aware that I had X amount of dollars available!!! and for a limited time only, any money I borrowed would only be charged 6.25%!!!! until March of 2008!!!

What part of “paying down principle” didn’t she get? Why would I go from wanting to pay down my loan to wanting borrow even more? I guess some people would find 4 months of 6.25% interest too hard to resist.

And getting back to your question, if I did decide to borrow the X amount of dollars available to me, I would certainly be upside down, owing more than I could sell my condo for.

[citydweller]

kev374, I think one point you’re missing is that most of these loans are for more than the house is currently worth. Also, even a 5% 30 year fixed monthly payment is probably higher than the original teaser rate payments that a lot of these people started out with.

[citydweller]

kev374, I think one point you’re missing is that most of these loans are for more than the house is currently worth. Also, even a 5% 30 year fixed monthly payment is probably higher than the original teaser rate payments that a lot of these people started out with.

[citydweller]

kev374, I think one point you’re missing is that most of these loans are for more than the house is currently worth. Also, even a 5% 30 year fixed monthly payment is probably higher than the original teaser rate payments that a lot of these people started out with.

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