Originally Posted by RPKESQ
Home ownership is not when you have a mortgage. You are in reality, just "renting to own".
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Originally Posted by TheMentat
False. In reality, I own the home, and have given a mortgage to a lender as collateral for a loan.
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No, you do not own the home. You "own" all financial obligations (taxes, loan, maintenance, insurance, etc.), but just miss a few mortgage payments and see who really owns the home. You can use all the common financial BS terminology to describe what you are, but until you own the home free and clear, "homeowner" is inaccurate regardless of who uses that term.
Originally Posted by RPKESQ
Borrowing on any "equity" on something you don't really own is the height of stupidity from a financial POV.
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Originally Posted by TheMentat
This needs explaining.
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If you owe on an asset, you really do not own it. See above. Taking out a loan on something you do not own outright is compounding the risk on the initial debt and liability. This is not good. It should not be allowed. Would you take a loan out on a car you still owed on?
I am not talking about some emergency, life or death case. I'm talking about people taking equity loans on their home for improvements, toys, vacations, etc.
This is ridiculous and very harmful to both the "renter to own" and the financial health of our financial system. It should, IMO, be outlawed.