Banks still not pushing HELOCs...
Homeowners are sitting on a record amount of cash — and not tapping it - CNBC https://t.co/f4MyCF5TwL
— 美国及全球房地产投资趋势观察 (@usaregnews) July 10, 2018
Homeowners are sitting on a record amount of cash — and not tapping it - CNBC https://t.co/f4MyCF5TwL
— 美国及全球房地产投资趋势观察 (@usaregnews) July 10, 2018
10 comments:
Equity is not cash. Duh.
Journo....
Home Equity Lines Of Credit are great. Unlike a mortgage, they are revolving credit, which means they operate like credit cards. If you are late on a payment, you are hit with massively exploding late fines and interest rate penalties. And, like a credit card, if you have a massive outstanding balance, you may never be able to pay it all off.
If you buy merchandise with a credit card, the interest doesn’t start accruing until a month after the purchase. But if you take a monetary loan on a credit card, the interest starts accruing immediately, and the late fees and interest rate penalties are severe. A HELOC is the same. It is a revolving line of credit involving a monetary loan.
The beauty of all this is that if you take, say, a $15,000 HELOC on your house, and you can’t pay it back, the bank claims your $300,000 house. If your home is paid off, that’s a 2,000 percent profit. And the bank creates that HELOC loan money out of thin air.
What’s not to like?
I haven't looked into it but i thought about that, Konrad, that i could release some of the equity in my house when I'm older. But i could live another 20 after 65 years old so i bet the banks won't give me much for it. They created the money out of thin air and gave everyone who wanted one a loan, which is a force outside of market forces. People desperate to get a place to live, and speculators hoping to make tons of money, all jumped in on the pyramid scheme, whacking the price of property up. Even i got into a panic realizing if i left it any longer i wouldn't be able to afford an house, so I got stung with a big mortgage with turned me into an overtime king, a slave.
The banks create the money out of money thin air and turned me into a surf, but now they can create more money out if thin air to help me release some of the equity in my home. As i might live another 20 years from 65 years old they won't give me much on my home compared to what i put in. So not only did i became a slave for the banks, but they get my home for very little outlay when i die. It's, win, win, win, for the bankers, who are the elite, the One Percent, our overlords.
Kaivey maybe only use one to make necessary big repairs to your home... ie not to finance a big vacation....
.
@ KAIVEY:
“It's, win, win, win, for the bankers, who are the elite, the One Percent, our overlords.:
And they do it all through accounting sleight of hand. Bankers get away with their crimes because the public protects them.
For example, if you explain that bankers create loan money out of thin air, most people would reject that. Most people cling to the false belief that bankers lend out people’s deposits.
You’d think that with such an important thing as money, people would take the time to understand how it works. But no, people create delusions and false beliefs in order to cope with the pain of life, and they spend their entire lives in those delusions.
Meanwhile the bankers laugh at their stupidity.
“For example, if you explain that bankers create loan money out of thin air, ”
A sophomoric attempt to explain a very typical accounting abstraction... recommend take a few Accounting courses
“accounting sleight of hand.”
Take a few Accounting courses and it will soon stop appearing to you as “sleight of hand...”. It’s “sleight of hand” to you because you are not trained in Accounting science...
Franko I apologize. I got confused and thought that someone else had posted this article. Now I see that you posted it. I never comment on your posts, or respond to your comments, since you are vile, crude, and infantile. But, as I said, I got confused.
I am only commenting here in order to apologize to you. I promise to be more careful from now on.
10-4
Post a Comment