[raybbr]

I’ll say that I didn’t realize so many people were using home equity to buy stuff they couldn’t afford. Because the value of their homes went up they thought they were in money... I don’t understand why they didn’t realize that every cent was borrowed money that had to be paid back regardless of the current value of their home. I really, really don’t understand.

My wife was like that. She couldn't grasp that equity didn't exist unless you took out a loan and had to pay it back.

Luckily I was able to get through to her.

[RSmithOpt]

The only time equity is money is when a person or couple sells their home, takes the capital gain, moves to an area of the country where the property taxes are much lower, and buys a smaller home 30-50% what they sold the previous for.