Home Equity Loans Tampa, FL
Shouldn't we be happy about these numbers going up this way? Sure it represents a recovery in home equity values the reason is that home prices are up 36% since the crisis that led to an increase in home equity values of 6 trillion and expanded the pool of available borrowers. So it means that the balance sheets are improving and repairing. That's the good news for Tampa Bay real estate but should we be anxious about people dipping into that? So it represents a recovery from artificially low levels of home equity lending unlike what we saw in the mid-2000's there's been no deterioration in underwriting for these borrowers credit scores are 40 points higher than before the bar of the income, the income of the borrower is 20% higher and so there's been no deterioration in the credit or the income of the borrower unlike what happened last time. If we look back at the financial crisis the most telling statistic is that credit spreads fell dramatically in the lead up to it. So as long as we're not seeing that kind of behavior taking undertaking risky loans for waterfront homes for sale in Tampa, FL as a result of getting cheap money we guess we don't see the same problem. We would like to add that we're not seeing any of the piggyback lending which also led to an incremental increase in leverage so this is based on quite a bit of equity in the borrower's home. Not to be an alarmist tho, but the trend line usually given if it starts here it could potentially only may get better to what it means for the economy at least for the short term ultimately the pendulum sometimes swings too far? Well it certainly can but again we think the issue that you want to look at is whether there is a tendency to undertake risky investment primarily because it's cheap to do it. So if you look at the markets they are rational in this sense it wasn't that people were doing crazy things and money was cheap to undertake these risky investments that's why they did it. Right now we don't think you see exactly that same kind of thing happening as you did back then. We think you're wise to be cautious and say let's look to the future and see where we're going but right now we don't see it. What are people using this money for then? Primarily to remodel their home more than anything else. Which is why you would see more condos for sale in Dunedin, FL last decade ago. Which is a little bit different than what happened last decade which wasn't really more along the line consolidation of lending. The growth rate in lending really slowed down in the second half of 2015. The growth rate was very strong in 2014 and the first half of 2015 but it really began to decelerate in the second half of 2015.