Posted on: 10-02-09 20:39:06
Quote:Which is the way it should always have been.
Originally posted by DP_gta
Bank/credit union have stopped dispensing HELoC now or at best giving at prime ++ or @ max. 60% LTV
The US has shot itself in the foot by their practice of tax deductible mortgage interest.
It has made people carry their loans for ever.
Compounded with low interest rates means that people have no incentive to pay off their debt before 35 or 40 years.
Even a 3% rate carried for 35 years adds significant interest to the loan, often doubling the price people end up paying for the house.
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