Comments on: Home equity loans

By: gardiloo1

gardiloo1 — Sat, 30 Jan 2010 23:05:11 +0000

I love these videos, very educational and true…but perhaps give some home owners a better wrap than people who will go on a 100K vacation…perhaps they spent it on education! The result is the same

By: khanacademy

khanacademy — Sat, 30 Jan 2010 22:51:02 +0000

You're right. Although I wanted to show how home equity withdrawal made people feel rich and consume more. Education, for the most part, is an investment and, assuming the student is responsible, will generate a return.

By: nathanbanks

nathanbanks — Sat, 30 Jan 2010 22:00:59 +0000

You originally bought a house for a million and a half dolalrs, and a year later, the value of the house went up to 1.5 million???? Im confused.

Also 75% of 1.5 million is $1,125,000 not $1,075,000

By: joesteinbock

joesteinbock — Sat, 30 Jan 2010 21:01:39 +0000

Hey strawman….read and pay attention….
He said he originally bought it for 1 million AND he said the 1.075 is an approximation.

By: thetempun

thetempun — Sat, 30 Jan 2010 20:06:48 +0000

Should I Be Watching This I'm fifteen ? But I NEED To Learn This.

By: quitejaded

quitejaded — Sat, 30 Jan 2010 19:29:37 +0000

Its never too early to learn about managing your money.

I just don't really understand why you owe the bank 325k when its coming out of your house.

By: machvis

machvis — Sat, 30 Jan 2010 19:05:48 +0000

Just a question Sal> If I bought a car than we should write the car in assets, in this case 100K and cash will decrease by 100K, So equity should stay the same. Am I wrong?

By: dontblamethemessenge

dontblamethemessenge — Sat, 30 Jan 2010 18:37:19 +0000

In the Netherlands they also have the option to get the "overvalue" of the house from the bank. So people could use that amount of money, not for holidays but only for improving the house.
I have a house but i did not really understand the concept until this video, thanks for that.
Luckily i did not use that "overvalue" because this overvalue will go down as the prices decrease of houses. So this overvalue is a kind of buffer for decreasing house prices.

By: ThatIsNotDeadWhich

ThatIsNotDeadWhich — Sat, 30 Jan 2010 18:22:50 +0000

Yes and no. Assuming that the car is actually worth 100K, you're right. But if you live in a reasonably densely populated city with a half-decent public transit system, chances are that the car isn't worth the book value.

In much of Scandinavia, for example, commuting by car is actually more expensive than commuting by train *just in terms of running costs* – which argubly makes the car an asset with a *negative* value in purely economic terms.

By: davidmichael3d

davidmichael3d — Sat, 30 Jan 2010 18:20:00 +0000

These videos are absolutely brilliant. Well done for noticing the recession in early 2008! Many economists only became sure of that in 2009.