Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (6182)	7/4/1998 10:32:00 PM
From: Jacob Snyder	Read Replies (2) \| Respond to of 10921

OT: re: bears watching: from the article: "Using a 125 LTV loan, the owner of a $200,000 house with a $175,000 first mortgage could take out a $75,000 debt-consolidation equity loan in the form of a second mortgage. The combined debt from the first and second mortgages would total $250,000, or 25 percent more than what the home would sell for." So, what happens in the next recession when the house is valued at 100,000$, and the home-owner loses his job? I've seen this happen. I went to medical school in Texas in the 1980s, during the oil-created downturn, and listened to a lot of conversations among my classmates about their families' finances. Hard-working well-educated people. A lot of those families lost the houses they'd grown up in. I vowed to pay cash when I bought a house. I've since changed that to, "I'll take out a (first and only) mortgage, but only because my stock portfolio is twice the size of the mortgage." I realize most people aren't in a position to do that, but it ought to be illegal to borrow more than the value of the house.