[The Loan Arranger]

I'm sorry, but I beg to differ with you. Unless you stop making your loan payments, how are you "setting yourself up for a fall?" When was the last time that homes depreciated nationwide? The great depression? That was seventy years ago! Where else can you get money for any purpose, and not only not pay taxes on it, but use it as a tax deduction?

[cherry]

I suppose we were foolish but it made sense to me when our Wash Mutual home loan was at 7% instead of paying 2-3 grand for a new loan we opted to go to an essentially fee/point free Home Equity line of credit and put our house and two car payments on it over the last 2 years....

while only the interest is required , proud to say that we are at least $10,000 below what our mortage was at that time, and that included paying off two vehicles.....we can do that because more of our money is going to the principle of the loan....

we do realize that interest rates are going up, but we are still ahead until it hits 7% and at that time, our loan will be basically gone....

it requires discipline though, because I know some people use these loans as fun money....we use it only as cheaper money for the mortgage....

[Sam the Sham]

In high real estate value areas, like the New York metro it has been known to happen. For instance in 1987 the New York metro housing market tumbled and people were "upside down" (the mortgage is more than the resale value) until 1994.