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To: Mark Adams who wrote (248152)	7/2/2003 1:19:11 PM
From: UnBelievable	Read Replies (3) \| Respond to of 436258

In The Process of Refinancing Most people are taking "equity" out of their houses. Rates now are unsustainably low, which means that prices (which like those of bonds move in the opposite direction of rates) are unsustainably high. When people attempt to sell in the future, when rates have increased and prices decrease, many will find that they are not able to get any where near the amount over their mortgage balance that they expected. People are being encouraged to spend the equity in their homes now, when in fact they will probably need it for more essential things in the future. There also obviously is a significant risk if people are refinancing with variable rate mortgages that in the future if rate increase that they will not be able to make the payments. Refinance for the homeowner is a no brainer - as long as they realize the potential. I think that from GM's perspective selling low cost debt makes sense. What is less clear is taking the proceeds and investing them in the market with the expectation that the market return will be higher than the debt service.