[raybbr]

As long as I'm paying the mortgage I can do anything I want to the house provided I get the permits. But how many people would spend money to reduce the value of their home just to cut energy costs? That's a ridiculous scenario.

It may be but the fact that you have to get permission to do so means you don't "own" a home that's under a mortgaga.

It still doesn't counter the fact that the average household owns 57% equity in their home and home ownership is at an all time high.

You don't "own" the home outright if there is a mortgage. It doesn't matter who the profits a sale go to. You can't sell the house or do anything you want to it without the banks permission. I can do anything I want to my cars but not to my home. I must get approval either from the town or the bank. How can that be if I own it?

Equity is a meaningless number. It's a value that can't be realized without giving up the home. Even equity loans further consolidate the bank's ownwership of the property.

If the house burns to the ground or is destroyed by a tornado who gets the money? The bank does.

[Mase]

It may be but the fact that you have to get permission to do so means you don't "own" a home that's under a mortgaga.

Do you mean that if I have a home without a mortgage I don't have to get permits from the city/county to remodel or expand? The bank doesn't care what I do to the house as long as I make my payments on time.

You can't sell the house or do anything you want to it without the banks permission. I can do anything I want to my cars but not to my home. I must get approval either from the town or the bank. How can that be if I own it?

I don't have any idea what you're talking about. I have to get the banks permission to sell my house? What? I've sold two houses in the last 10 years and I never asked for permission from my lender. Last year I gutted my current home, remodeled and even added additional square footage. My contractor had to pull all sorts of permits from the county. I never had to get permission of any kind from my mortgage company.

Equity is a meaningless number.

Is that why the fed counts it as an asset? If it's meaningless, why is it I can borrow money against it and use the interest paid as a tax deduction?

If the house burns to the ground or is destroyed by a tornado who gets the money?

I'm well insured so the bank would be paid the remaining amount outstanding and I'd get the rest. Other than my deductible, it wouldn't make a bit of difference, at this time, if it burned to the ground or was sold at market value.