Even though there are 11 million U.S. homeowners underwater, home equity loans are making a comeback. Should you take out a second mortgage in order to tap into your home equity? Or would you be setting yourself up for foreclosure? These are questions to ask your real estate solutions company.
Most major lenders have reported an increase in home equity lines of credit and foresee more on the way. They’re happy to extend this credit to you for 10 years because foreclosure is a plus to them. However, it could be devastating to you.
While the returns are there and you don’t want to miss out on them, you need to know what’s on the line. You may be fine with this if you don’t have a family but if you do, you should carefully analyze the downside of things.