I was watching an Ameriquest Commercial tonight and they were touting home equity loans. The tag line in the commercial was "Get money out of your house."
Two Points:
1) They use the term 'house' not home. Why? The word 'home' often has a deep personal attachment for owner. The term 'house' does not. It is 'Home Sweet. Home.'
2) One one gets a home equity loan they do NOT 'get money out of your house' but rather one borrows against their ownership in their home. The loan is guaranteed with the value of the house. Your home is not your ATM.
Oh and the corporate slogan is 'Proud Sponsor of The American Dream.'
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Very few of the financial experts for Joe Sixpack ever point out the *advantage* of credit card debt over these home-backed loans: you have put up no collateral.
ReplyDeleteThe reason these home backed loans have lower interest rates is that they can come take your house.
Of course, if possible, it would be better not to have debt at all.
If you want to see "The proud Sponsor of the American Dream" in action, search rip off report on the internet, then put in the word Ameriquest. There are hundreds of consumer complaints and stories about AMQ's 3 year prepayment penalty, forced placed insurance and foreclosure filings. This company is being investigated by AG's in several states right now and has class actions filed against it in over 20 states. The chairman, who is a FOB (Friend of Bush)was nominated to be the ambassador to some small Eurppean country and that has been held up by the Senate for months.
ReplyDeleteI was watching an interview last night on CNBC. The guest was Bill Emerson of Quicken Loans. He denied there is a Housing Bubble "Nationwide". The "Nationwide" might justify in his mind the apsense of a bubble. He did not mention anything about declining home sales and mortgage applciations but rather said 2006 will be as good or better that 2005.
ReplyDeleteAnother lier with a straight face!
STAY AWAY FROM QUICKIN LOAN, THE OWNER BOUGHT THE CLEVELEND CAVALIERS FOR 330 MILLION, HOW DO YOU THINK HE PAID FOR THIS?
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