From SignsOnSanDiego.com:
In addition to strengthening the economy, the gain in home values makes it highly unlikely that widespread mortgage defaults will occur in the event of a sharp economic downturn, said Alan Nevin, the California Building Industry Association's chief economist.
"People have the ability to borrow against their homes," Nevin said. "If times get tougher, they could borrow a sufficient amount to pay their mortgages."
Don't you just wonder how it is that some people manage to get their shoes on in the morning without hurting themselves?
Sunday, June 05, 2005
What'd He Say?
— Posted by Michael @ 12:20 AM
3 Comments:
It's funny Mike. I'm no real estate expert by any means, but in order for a home to be worth what people say it is worth, there has to be at least one buyer who will pay that price. So in the event of a wide economic downturn, there won't be as many buyers. That means home prices could easily go down. Which means people won't be able to tap the "value" in their home. At least that's how I see it.
Hey Mike, have you ever been in a situation that caused you to tap into your homes equity? It doesn't matter how much the house is worth if you are not going to be able to pay the payments after the cash you borrowed is gone. And New interest, closing costs. etc. why do it?
I did and guess what I am losing my home.
Anonymous,
The quote above isn't mine, you know. Someone else said it. And no, I've never touched my home's equity.
Anyone silly enough to think that the drain-the-home-equity merry-go-round is perpetual in nature had better examine some history, else they become a sad footnote in it.
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