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Article: Equity loans can be 100 percent trouble.(Friday Home Guide)
- Article from:
- The Washington Times (Washington, DC)
- Article date:
- August 21, 1998
- Author:
CopyrightCOPYRIGHT 1998 News World Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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One of the latest fads in home equity loans is a product that allows homeowners to borrow up to 125 percent of the value of their home. Gloria Boone says she is not happy with the program because homeowners are doing things backward, and then she has to be the bearer of bad tidings.
As senior loan officer at Acacia Bank in Falls Church, Mrs. Boone makes mortgage loans and does refinancing. She is having to turn down applicants for refinancing because they took out a home equity loan first. That, she says, is usually a mistake.
The following story is typical, Mrs. Boone says.
A young man came to her not long ago and applied to refinance a ...