TWeeD (![[info]](http://l-stat.livejournal.com/img/userinfo.gif){kind=small} densaer) wrote,@ 2008-08-15 19:16:00 |
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NY Times: For Banks, Home Equity was dream come true.
Ironically, the day after running into the wall with my mortgage, the NY Times ran this article about the whole Home Equity (second mortgage) situation. Banks changed the language: it wasn't a 'second mortgage', but now it was a 'home equity loan'. They changed the culture, too.
It's really interesting (and relevant) reading for me. Alas, too many people "mortgaged the house to buy a blouse."
It turns out that people aren't as rational in their purchase power as Adam Smith would have you believe...
(For whatever it's worth, I'm closing my HELOC since I don't really have any good options, and going forward with the 30-yr fixed refi. The kitchen will just have to wait.)
Ironically, the day after running into the wall with my mortgage, the NY Times ran this article about the whole Home Equity (second mortgage) situation. Banks changed the language: it wasn't a 'second mortgage', but now it was a 'home equity loan'. They changed the culture, too.
It's really interesting (and relevant) reading for me. Alas, too many people "mortgaged the house to buy a blouse."
It turns out that people aren't as rational in their purchase power as Adam Smith would have you believe...
(For whatever it's worth, I'm closing my HELOC since I don't really have any good options, and going forward with the 30-yr fixed refi. The kitchen will just have to wait.)
