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That's true except for cash out refinancing. Lots of middle class folks take out home equity loans to pay down credit card debt. This was a big component of t
by djyaz1200 5y ago
That's true except for cash out refinancing. Lots of middle class folks take out home equity loans to pay down credit card debt. This was a big component of the 2008 financial crisis. That and banks leveraging 40-1 and betting big that housing would never decrease in value.
- rootusrootus 5y ago> take out home equity loans to pay down credit card debt I'm sure I'm preaching to the choir, but this is a terrible strategy. In a perfect world it cuts the interest payment a lot, but the risks are significant.
- sokoloff 5y agoThe risk is magnified if you’re the type of person with a track record of running up credit card debt.