Why did the bank charge you interest on your home Equity loan?

The equity is yours -- Yes -- BEFORE you give that equity up for more debt. It's your COLLATERAL for the LOAN they give you. The equity you accumulated in the past is no longer your equity once you have given it up.





Because you gave up that equity for another loan... Banks would be out of business very quickly if they didn't charge interest on loans they make.

Not sure what you don't understand here... it's pretty simple really.

That is because you are borrowing on what you how much you paid off on your loan. It is you equity but you are risking having to pay more, to pay off you home. Better to not do it, I know from experience.

Never borrow on the amount that you have paid off, your house could go down in value, the equity is what you borrow from what they think your house is worth, remember you need to pay off what you paid for the house, not pay 2 to 3 times more that what you paid the first time.

It can be hard when you need money, but if you don't want to stay in the house, it would be better to sale it and downside and save money.

I never liked borrowing my husband did, now he regrets it, but I did not fight him, he had to learn himself.

Equity has positive value.
Debt has negative value.

Why would someone give up positive value for negative value?

the banks will most likely crash and burn.and the days of corruption will end .

These are not real banks, they are retail commercial banks "selling" the use of their fiat currency (commercial paper).

This commercial paper is backed by employees energy and labor.

It needs energy and labor to back it...it is just paper. The value comes from us, but the paper comes from them.

But folks still think and refer to the fiat currency commercial paper as money.... therefore, the confusion will remain.

Last Edited by Donny Boy on 10/13/2013 09:17 PM