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Article: POPULARITY OF HOME EQUITY LOANS RISES DUE TO TAX CHANGES
- Article from:
- THE JOURNAL RECORD
- Article date:
- July 8, 1988
- Author:
CopyrightCopyright (null) The Journal Record. Provided by ProQuest LLC. (Hide copyright information)
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WASHINGTON - Home equity loans, enjoying a boom in popularity because
of changes in the tax law, now account for more than $75 billion of
total consumer debt, a government study has found.
The Federal Reserve, conducting its first comprehensive look at
the new consumer credit lines, found that some 3 million homeowners
have home equity loans and that three-fourths of all existing loans
were taken out in the past two years.
The home equity loans are replacing second mortgages in
popularity because they offer greater flexibility to consumers.
While second mortgages are extended for a specified period of
time and require repayment of principal and interest in equal
monthly ...