Sunday, August 28, 2005
Good Advice From Howard
There are a number of pieces being run in various media this weekend saying how "smart" it is to second mortgage your way to a better life style than you could otherwise afford. The "smart" people do not have dead equity in a house. Get the money out as prices rise. The "smart" people are all doing it. If you were only "smart" you would mortgage to the hilt.If you want to understand why this is probably not "smart", read his whole piece. An awful lot of "smart" people end up in bankruptcy, and I have to say that the new rules going into effect in October don't favor those who were "smart" and piled the debt on. Howard's advice is extremely valid for the vast majority of people. The pieces being run are sucker bait.
Believe me, the powers that be are taking Immodium because of their fears that there may be a problem with the mortgages out there. Google Fannie Mae, and see Mover Mike on the issue.
But safely. It's no fun to own a home when you are losing sleep at night over whether you can keep it and whether you may owe more on it than it's worth.
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