But a word of caution: refinanced loans and home equity loans tend to be recourse loans.
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Now, for many years, credit cards and home equity loans papered over this harsh reality.
Following the success of this venture, Discover is also looking to branch out into home equity loans.
Traditional home-equity loans mostly charge fixed rates, and the borrower gets the money in one lump sum.
Rates on home-equity loans and lines of credit average about 6.4% and 5.1%, respectively, according to Bankrate.com.
The proceeds of home equity loans are frequently utilized to purchase cars, pay tuition or take leisure trips.
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For that reason, Congress should definitely eliminate the availability of the MID for second homes and home equity loans.
FORBES: Heretic Reality: Mortgage Interest Deduction Needs To Be Slashed
And the lifeline provided by home-equity loans is increasingly constricted, as damaged banks cut back on pre-arranged credit lines.
Mortgages can come with fixed, variable and adjustable interest rates, and typically offer longer terms of repayment than home equity loans.
Many banks have transferred credit-card loans to home-equity loans, which are tax-deductible for the borrower and offer collateral for the lender.
It stuffs the monthly account statements with encouragement to take out car loans as well as home-equity loans and other mortgage debt.
The Non-Strategic Assets Portfolio segment offers commercial residential development loans, cross-border leases, consumer brokered home equity loans, retail mortgages, non-prime mortgages, and residential construction loans.
Most home equity loans have fixed interest rates and 15-year terms.
This list should include credit card debt, student loans, home mortgage or equity loans, medical debt and any other outstanding debts you have.
Housing bubbles arise when dumb bankers are willing to issue six-figure mortgages without asking questions and make home equity loans at inflated rates.
Similarly, Congress should prohibit taxpayers from taking the MID on home equity loans, since they do not promote home ownership in most cases.
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The personal-loans market may also provide a launch-pad for other retail-finance businesses that are underdeveloped in Japan, such as credit cards and home-equity loans.
Undoubtedly, there is a danger that exposure to bad hedge-fund or private-equity loans could damage the banks, but the same is true of property companies.
AmeriCredit hopes to augment its growth by paying for referrals from Chase Manhattan, a big lender to good-credit buyers, and by dabbling in home equity loans.
People who took out home-equity loans before the crash and put the cash into conservative savings vehicles instead of toys in effect hedged themselves against disaster.
But student debt is quickly rising, in part due to higher tuitions, but also because alternative ways of paying for college such as home-equity loans have dried up.
It has approximately 22, 000 residential mortgages and home equity loans, of which only 249 loans were past due 30 days and less than 100 were in foreclosure.
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The prosperity was built on little more than a housing bubble and on financial speculation -- people maxing out on their credit cards, taking out home equity loans.
This assumption was based on the stable underpinnings of auto demand--cheap financing by car companies (and by home equity loans) and a customary replacement cycle of three years.
The application of the MID to home equity loans is simply a circumvention of the Congressional decision, taken years ago, to prohibit tax deduction for interest on consumer loans.
FORBES: Heretic Reality: Mortgage Interest Deduction Needs To Be Slashed
Many included gimmicks like instant home equity loans to offset down payments, or required scant documentation, making them popular with buyers who were stretching to purchase homes in a red-hot real estate market.
One involves a major sticking point for many servicers who have tried to modify mortgages to more affordable terms: How to handle the millions of homeowners with second mortgages or home equity loans.
So people are having to use their credit cards or home equity loans just to try to make the mortgage, or pay tuition, or put gas in the car, or food on the table.
And finally, the Washington Post reported that some prospective college students are choosing lower-cost options as their parents find it harder to get home equity loans or private loans to pay for their education.
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