Mortgages

Some people may not realize that there are a number of kinds of mortgages other than your usual home mortgage when you bought your house. If you have good credit, the possibilities are almost endless. Our daughter wished to add a large family room onto their home and because they had good credit, they took out a home equity loan. They also found that with all the changes in interest rates that they could refinance their home to a much lower interest rate and have it paid off much sooner. Because they were faithful in their payments, they have built up considerable equity in their home and it makes it possible for them to do all kinds of changes to their home. Now they are planning a double garage and it is possible because they have good credit.

Freddie Mac: Home Equity Borrowing Down

In the first three months of the year, 56 percent of homeowners refinanced their mortgages and cashed out at least 5 percent of their equity, according to Freddie Mac on Friday. That is a four year low, and down from the peak in mid 2006 of 88 percent. Homeowner's inability to tap their home equity often affects their spending and investment decisions, which is why economists watch the rate so closely. From January through March, Freddie Mac said borrowers cashed $29 billion in home equity, down more than 19 percent from $36 billion in the fourth quarter of 2007.