Beautiful home equity loans remained tight

Reporter HuQingYang comprehensive report

November 2005, 2009

Chinese head of purchasing house used to put too much, but when you need money to bank for Home equity loans (make), bank of Home owner often tell you, as the credit crunch, are difficult to loan, or provide the loan interest rate high, let the applicant backpedaling.

Since late last year, a 30-year fixed-rate mortgages are below 5%, very attractive, plus the federal government provides preferential tax credits to 8,000 yuan to buy room person, lets try.

By the end of 2006 DaiKuanBu personnel at the bank to lobby for the next home equity loans, 49 million Mr Has 5000 yuan, interest is to reduce Rate since early 2008, Mr. Wu 0.25%) received advising bank, cancel all home equity loans, and buy a new car and caught the great house decorate his anger when feeling not. After negotiations, bank, but because of the wrong and the concession Mr Houses to 30 million net amount to 5,000 yuan.

Mr. Wu again this year to another house loan applies to the bank for payment on net of university tuition son, the bank agreed to provide 10 million yuan, and the loan interest Rate 2% to add since Mr Count, loan interest Rate than the ordinary, equivalent to 5.25 percent mortgage rates are high, don't bargain.

Banks also has its expressions. Large quantities of homeowners, housing prices falling eye not net, even the loan amount still higher prices, housing, abandoned house refusal bank huge losses.

American bank (BOA), for example, in the third quarter of this year it home equity loans losses as 70 million yuan, more than 19 million in the second quarter of 1 million RMB 3,000 more than 10 times.

Application of home equity loans, and found the net amount approved than they expected much lower, bank. The appraisal company generally adopted lower prices, and secondly, valuations have been significantly from sliding, although recent peak, but there is still a better price 20%.

The bank provide housing shrink, poor condition of home equity loans, also caused application case is greatly reduced. The second quarter lower than the same period last year.

Industry analysts said prices rebounded, unless otherwise home equity loans to the market, the fastest and rejuvenation of the next year.

home equity loans

home equity loans