They were homeowners picking up items to
add those finishing touches to their
houses and now they have a new way to
finance those improvements, they can
borrow money using their home as
collateral. It's good if people
will use it wisely.
I'm afraid that they're going to be some
people that will not use it wisely and
then they'll get in debt over their heads
and then they'll lose their their homes.
I wouldn't use the money.
If I'm not going to use for business
purpose or some profit, I wouldn't
pull the money for nothing.
Not everyone thinks this was a good
change. I lived in California for a while
and I saw it out there and I
saw a lot of people lose their houses,
so I just don't care for it.
Person before the votes were even
counted. Some banks in this area already
had ads in the works touting home
equity loans.
Bank officials say the object of the loan
is to help people, not get them into
a situation they cannot handle.
They say safeguards will help.
One is a 12 day cooling off period
between the time of the loan approval and
when the money can be picked up.
They also stressed the nationwide
foreclosure rates and these loans is less
than one half of one percent.
A spokesperson for Wells Fargo Bank says
research they've done shows Texans
do not plan on using a home equity loan
for something frivolous.
About 20 to 25 percent
said that they would first use it for
home improvement to improve
their homes or expand it for a change
in family situation.
The second biggest reason they would use
it would be to finance a college
education for a child.
Brides says a home equity loan would also
help come tax time, since it's
tax deductible.
Joe Munoz, Texas News 5.