Did you "tap the equity in your home" between 2000-2008?

[El Pinko]

Did you "tap the equity in your home" between 2000-2008?

Feel free to include any refi's that increased the loan balance and/or had higher payments later on.



By the way, when did we stop calling them "second mortgages"?

[bigtree]

1. refinanced

Took the $80,000 we owed and upped that to $120,000 to take out $30,000. Cautious. The lender initially wanted me to take $120,000 out. Still owe a little less than half the value of the home, at the most pessimistic appraisal. Money already long gone. Monthly payment went up too. Good at the time. 30 years is a long way off.

[Vickers]

2. No, but the bank was pushing hard for that.

We bought a house for around $150k in 1999, went to refinance in 2004 or so. The bank says, oh, we can actually finance the assessed value PLUS 25%, which at the time would have been over $275k !!!

We said no thanks, we just want to refinance what we owe (a little over $100k).

It was a pretty heavy-handed presentation, and I'm glad we didn't fall for it (or an ARM).

[1awake]

3. Own my house outright.

My grandparents drilled into my head never ever borrow against your home. Grandfather was sent away to one of the CC camps out in California when young sending his meager pay back to his mother and younger siblings. Use to tell me stories of walking the railroad tracks after school to find coal for the family. They lived in a shack they built on the bank of the ohio river. Yea.. I grew up in their home so I learned alot from them. My grandfather left school in the 6th grade to help out his family.. the smartest and most honorable man I have ever met.

[spag68]

4. Home equity

Did this about 5 years ago, and it was well worth it. We used the money on new windows,insulation, new heating system, and pluming including new bathroom. All our loans are at 5.25% and we have 15 years left on mortgage, so my conclusion is, it is better to be lucky then smart. Timing has worked in our favor, so it was a good deal for us. on edit I forgot to add, we make the payment +200% each payment,should catck up with the main mortgage in a couple yesrs. We are lucky enough to be retired she from edu. admin. me from Electrical work.

[dkf]

7. You used it for the purpose it was intended.

It wouldn't be so bad if this was how everyone used home equity loans.

[SidDithers]

5. Used the secured LOC...

but the end result is the same.

Sid

[Lex]

6. Home Equity Lines of Credit can be a kind of second mortage.

But not always a second mortgage. Some folks, not many, but some, only have an Equity Line against their house, so it's not a 2nd.

Home Equity Lines can be tapped into and paid off and tapped into again. Run up and paid down by the borrower.

Some 2nd mortgages are disbursed out at the time they are set up, so they aren't a "line of credit" per se. You pay them off over a fixed time and they can't be run back up.

/boring

[riderinthestorm]

8. Yes, which means our mortgage is now about 1/3 of it's value.

I am not comfortable with our payments at all - especially in these times - but we are making them comfortably so far. In my defense my husband just finished the year from hell battling Stage IV lymphoma and realistically, it will recur and probably pretty quick because of the type he has. He wants to finish out the rest of his life at our farm, doing this work, for however much longer there is.

So we did a re-fi for an enormous sum and remodelled the farm house. Moved in July. I am terrified on so many levels but work hard to put on a brave face since he is THRILLED with this. The money and the financials are not on his mind at all - he's grabbed life by the balls and is living it.

[renate]

15. oh my goodness... your post devastated me

You are doing a blessed, wonderful thing for your husband. What you are doing is the definition of true love.

There's nothing I can say to reduce your fear of the financial aspect of what's going on, but your gift to your husband is a treasure beyond price.

I will keep you and your husband in my prayers. And I'm very glad that he is so happy and determined to get as much out of life as possible.

You will be rewarded every time you see him with a smile on his face or a twinkle in his eye. But I know your joy at his happiness comes at a cost to you, even though it must be wonderful to see him happy. I hope that his happiness makes you happy too.

You're a lovely person.

:hug:

[aroach]

9. We are screwn.

But I don't really think it has much to do with our equity loan that was used to replace the heating and air system and a few other things that are pretty much paying for themselves in energy savings. We're screwed because of the rising prices of everything else we have to pay for.

[shanti]

10. refinanced

but i was very conservative and shoveled most of it back into the house. however, i do know someone who sucked the equity out of their modest home and are in dire straits now.

[grammysandie]

11. Nope

We did refinance in 2003 to change our 30-year-note to a 15-year note with a lower interest rate, but didn't take out any additional $$$.

[Arctic Dave]

12. we refinancd from a 39 to 15

just so we could hurry up and pay off the mortgage. we have about 6 years left. We didn't take anything out. But it did increase our monthly payment.

[MrScorpio]

13. No, I didn't, then I sold the house to move back to Michigan

[AzNick]

14. Used it for wife's business, debt consolidation, home improvement

Everything you should keep one for, plus emergency.

Not to put on a second mortgage: flat screen TVs, trips to Vegas and hookers.

[Adsos Letter]

16. No..my wife and I have strong income, so we had no problem dealing with bills, etc....

and we have no real desire for expensive toys (she likes new-fangled kitchen gadgets, and I like my books. We both enjoy camping in the trailer, which is fairly inexpensive.

Some of our discretionary spending went into putting our daughters through private school, and state university (the UC system).

Both of us came from homes where money was very, very tight...I suppose we learned some lessons from that.

Our biggest advantage, though, was in having good, dependable income...I understand why some people "tapped" their equity if things got tough. It just never happened for us.

EDIT: I should add, our home was new when we purchased it, so, except for replacing a water heater and a few roof tiles, we haven't found the need to deal with home repairs...yet...

[Eurobabe]

17. Other

No sold the beast in 2006 when the market was headed south. Equity "safe" in the bank. :rofl: :shrug:

[Adsos Letter]

18. Aren't you supposed to be in Paris?

EDIT: will you and MissHoneychurch please refrain from causing any further disruption in the financial markets while you're there? :D

[Eurobabe]

24. LOL

yes, we leave on Saturday. Goddess willing. :hi:

We'll try not to make waves.

[MiniMe]

19. Refinances and took out some equity to pay off credit card bills

Also got a lower interest rate. Did not take out an excessive amount, and the house is still worth more than the mortgage balance. Paying the mortgage and it is affordable, probably less than renting an apartment would be.

[SmokingJacket]

20. Relatives bugged us to do it, constantly.

"Debt is good!" "Use your equity!"

I hate debt, so I didn't do it. A mortgage is bad enough...

We refi'd to shorten the mortgage.

[guitar man]

21. nope

Paid it off in late 02 and have resisted the urge to borrow against it ever since.

[Tracer]

22. Yes.

A 10,000 HELOC for a new roof and to pay off an 8.75% mortgage. (The HELOC was at 3.75%).

It's long paid off and the house is free and clear.

(One bank I applied at refused to lend anything less than $20,000!!!)

[ieoeja]

23. I answered "we are paying it off," but that is technically incorrect as I have no mouse in my pocket

So *I* am paying it off alone. But I only had to tap it to buy/rehab an apartment building.

[burythehatchet]

26. that's funny. I was trying to wordsmith how to say the same thing.

:rofl:

[lumberjack_jeff]

25. I sold it. Does that count?

We took the proceeds and built a smaller house on 5 acres. It was a good move for us.

[supernova]

27. Nope - own it outright

My parents left me the house after they passed away. Aww. They were Depression babies, so I learned about saving money from them. I shop at thrift stores and costco. I have very few luxuries, the sat tv is the biggest one. I don't even have a lot of furniture or other "things." I mostly enjoy music and movies.

It hasn't occurred to me to get a HE loan, even though there are home improvements I need to make, a much needed kitchen remodel for one. I will try to raise the funds myself and try to do it in phases if I have to. I want to work with a designer on how I can do that. The idea of borrowing a huge amount of money actually scares me. :scared:

I don't think I could get a HE line anyway. I'm a contractor, and while I make a decent living, I work sporadically.

edit:

I really do feel for all those who are caught in a financial bind.

[DeschutesRiver]

28. We took out a small amount of the equity to do improvements

on another place we own outright. And we paid it off very quickly. We have no debt.

The only time I could see carrying any debt would be for emergency reasons or to improve a piece of property (or when we started out buying our first home decades ago). Not to buy lattes, or purses, or fancy clothes or for eating out continually, which is how most of our friends use debt.

I never understood trading the equity in your home for a pair of really neat sneakers or lattes daily. Home equity loans are not for that purpose. And using home equity for trinket purchases is a big part of why the economy sucks right now.

[spinbaby]

29. We did some home improvements

We borrowed against our home to replace old drafty windows, add insulation, and reside. It's almost paid for and we have no other mortgage. The house is much warmer now, so we consider it to have been a good investment.

[Virginia Dare]

30. Own ours outright, my spouse hates paying interest for anything...n/t

[alfredo]

31. I cashed out of the stock market and paid off my mortgage when bush

got selected. So glad I did.

After I wrote the check, I only had $500 left in the bank, but I was debt free.

My wife and I took the payment book out front, and in the presence of our neighbors, we burned the book. What a beautiful light it made.