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Old 02-10-2013, 01:03 PM
 
Location: Southern New Hampshire
6,753 posts, read 11,837,497 times
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I didn't see any specifics in the article about the presumably "new, improved" (i.e. STRICTER) underwriting rules. I think in the past (pre-bubble) you could get a HELOC when it and your mortgage balance were as much as 95% of the appraised value of your home. It was bad enough that many of those appraisals were inflated, but to be so close to 100% was nuts.

If my mortgage balance were, say, <50% of my "real" house value (and I know that's subjective), I might consider borrowing $20k or so for a new kitchen or something similar, but only because I know that would likely add value to the house (as well as my own enjoyment of it!) and I plan to live here for at least 20 more years.
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Old 02-10-2013, 10:00 PM
 
621 posts, read 550,000 times
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Originally Posted by ducviloxi View Post
yeah SURE isn't that what they also said the first time around? that everything was super safe and nothing would ever implode?
If you want to sustain higher home values you need higher income to pay for it. with the current trends of good paying jobs going over seas or being replaced with automation where is the higher wages going to come from?

The economic hangover from inflation is far easier to deal with than the economic hang over from a popped Real Estate Bubble.
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