Your English writing platform
Discover LudwigExact(5)
Now, as home prices fall, loans are harder to get and home equity borrowing is tapering off.
Consumer spending has been weakened by rising mortgage payments, falling home values, a drop in home equity borrowing and volatility in the stock market.
Ms. Melendez says that although Wells has not made changes to its lending criteria, it has been seeing increased demand for home equity borrowing, largely to pay for home improvements and college education.
Still, yesterday's action suggested that the funds rate itself — which directly affects what businesses pays for loans and what ordinary Americans pay for home equity borrowing, car loans and various other consumer credit — would soon be cut.
But does this point to a return to the "my house is an ATM" mentality that characterized excessive home equity borrowing from 2004 through 2007, just before the crash?
Similar(55)
Last year the homeowning population extracted $640 billion, primarily via home-equity borrowing and cash-out refinancing, or because buyers tend to take out bigger mortgages than the balances owed by sellers.
Yet some limits suggested by the panel could reemerge for example, denying a deduction for second homes or for the $100,000 in home-equity borrowing for nonhouse purposes.
For example, consumer spending may be boosted by "equity withdrawal": borrowing by home-owners against the increased value of their property.
The easy money also fed a corporate buyout binge, with private equity firms borrowing huge sums to buy up public companies and pay themselves big dividends.
The next thing to look out for is the return of equity withdrawal, borrowing against the rising value of a home.
This is the eye-popping bet placed by Senator Kerry on his candidacy -- the posh home on Beacon Hill that he put up as equity in borrowing $6.4 million to keep his campaign going as it wobbled through last winter.
Write better and faster with AI suggestions while staying true to your unique style.
Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com