Home Equity Loans – second mortgage

Greg asked:


WASHINGTON (AP) — In a troubling report, the Federal Reserve said Americans’ equity in their homes has fallen below 50% for the first time since 1945.

Home equity is the percentage of a home’s market value minus mortgage-related debt.

The Fed’s flow of funds report shows home equity slipped to a revised 49.6% in the second quarter 2007 and fell further, to 47.9%, in the fourth quarter. It marks the first time homeowners’ debt on their houses exceeds their equity since the Fed started tracking the data in 1945.

Does Bush still want to take credit for the “housing boom”?

Bush seeks to increase minority homeownership
By Thomas A. Fogarty, USA TODAY
In a bid to boost minority homeownership, President Bush will ask Congress for authority to eliminate the down-payment requirement for Federal Housing Administration loans.

http://www.usatoday.com/money/perfi/housing/2004-01-20-fha_x.htm

Bush took credit for the “housing boom”. Now that boom is bust, do we let him have it both ways?
Hey, I didn’t say the housing boom or bust was his doing. I am just pointing out that he took credit for it while campaigning in 2004, and he made it worse by extending the problem to FHA.

JONATHON

How Big is Your Govt Check asked:


Or did people take out a lot of home equity loans and spend it on things other than their house?

HUGH