I’m sorry, I didn’t mean to be snotty when I commented. It’s just that I get so angry when I think of all the people who lost their homes, not only because they gave too much credit to people who could not manage it, but for actually criminal trickery. Apparently some have not learned as we saw with the recent Wells Fargo case where: “Employees were encouraged to order credit cards for customers who had been pre-approved without their consent, and to use their own contact information when filling out requests to prevent customers from discovering the fraud. Employees also created fraudulent checking and savings accounts, a process that sometimes involved the movement of money out of legitimate accounts.” Greedy crooks, grrrrrrr! Of course, it hasn’t helped that the employees who write the loans get a percentage of the size of the loan.
https://en.wikipedia.org/wiki/Wells_Fargo_account_fraud_scandal
I too have been conservative with my requests from banks. My equity line of credit is only 1/6th the value of the house, and when I advised my son, I urged him to request no more than 1/3rd his home’s value. He is in Special Forces, and thankfully respects my advice. Good luck, FRiend???
Thank you FRiend, and I certainly understand your angst.
It also makes me extremely angry. I had friends that bought at the high side, and either had to be foreclosed upon or keep paying double what their house was worth. That’s a bad situation to be forced into.
We bought in 2004z And then watched our house price double, and then watched it go to about 65% of what we paid for it. Luckily we never had to sell until we were able to break even.
And al because banks were forced to give loans to people who shouldn’t have them. So prices skyrocketed. Unsustainably so. I saw the prices in our area and thought “new homebuyers are now priced out of the market”. We no longer have a democracy when things like that happen. Then people are forced to rent, like they do in much of Europe. And they are stuck having to pay higher and higher rents on smaller and smaller apartments. There is no freedom in that! (Even though they get “free” healthcare and education)
We are on the same page! Have a fantastic evening.