I got a postcard in the mail today that said this:
“Use the equity in your home!”
“US Bank offers loans and lines up to 125% of the value of your home”
(I just picked my favorite lines from the postcard.)
The postcard is from US Bank. I don’t do business with US Bank but I did years and years ago. US Bank is where I was at before I discovered that banks are evil and that the only people I want to deal with are credit unions, where they don’t make a profit.
I’m not sure which line scares me the most. Saying it’s smart to spend the equity in your home is bad. But letting you borrow 125% of the value of your home is even scarier. Borrow 25% more than your home is worth? No thanks. That has disaster written all over it. If half of the people talking about the housing bubble are right and we start seeing declines in home values, that could make a bad situation even worse. With postcards like these coming around, it’s not hard to see how people end up losing their homes.
I’m going to just let my equity sit right where it is and keep building more.