Equity loans are hot right now. Home equity loans are fueled by a shortage of existing homes on the market and cheap mortgage money. In 2018, equity in homes climbed across the nation with loans getting cheaper and more competitive. The National Association of Realtors states that existing-home prices rose 8.8 percent from the fourth quarter of 2003 to the fourth quarter of 2004.
According to the California Department of Corporations, “A growing number of consumers are betting that home values will continue to appreciate as they take on mortgages that sharply lower their monthly payments but require them to shoulder far more risk.”It is this risk that makes one pause when considering such a loan. This is true particularly in California where the interest only loans have blossomed over the past couple of years. Interest-only mortgages have surged as prices spike and mortgage rates plunge. The loans, which once …
Recent Comments