Just got a letter from our mtg. company offering home equity $$. no surprise there right? i generally toss these things but as i'm working on starting a new co. and could use $50k or so once things are ready to roll i thought i'd see what they had to offer.
a quick scan showed they were offering 7 3/4% or so fixed rate and approx. $30k+ cash out. not a terrible rate for h.e. credit you say? the rate on our existing mortgage is 5 7/8% FIXED. the mtg. co wanted to REFI the entire thing at 7 3/4 to facilitate the $30k out!!!!
i understand many would say if you're dumb enough to sign up for such a thing you deserve what you get, and in a way i agree. but this kind of ***** is helping noone but the banks (or more correctly the currently employed execs at the banks who rely on performance bonuses; the banks, in the end, will suffer). these guys are right there with rent-a-center in terms of taking advantage of poorly educated consumers w/ self control problems.
IMO the people that think this **** up and put it into practice deserve a good arse whipping. the whole scheme (and i think 'scheme' is a perfect word here) is evidence of a total lack in ethics and concern for one's fellow human beings. just because there is a profit to be made doesn't mean it should be done. wtf is up with people?!