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Article: Home-equity loans going through the roof // The secret - willing lenders, borrowers
- Article from:
- Chicago Sun-Times
- Article date:
- June 15, 1990
- Author:
CopyrightCopyright (null) Chicago Sun-Times. (Hide copyright information)
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Home prices here may be flattening, the commercial real estate
market may be going down the drain and banks may be writing off loans
by the bushel, but one form of real estate lending is still going
like gangbusters - home-equity loans.
The reasons aren't hard to find.
From the banks' point of view, home-equity loans have almost
everything - they rarely default, and if they do they are fully
secured; they carry a high-ish rate of interest; and in many cases
that rate can be adjusted readily, so the lender has little risk of
being left with a below-market loan if prevailing rates rise.
From the homeowners' point of view, home-equity loans offer easy
credit, usually at a better rate ...