Anyone who had been diligently paying down a mortgage and others who had just sat back and watched their home appreciate in value were able to refinance and take out the difference between the value of the home and what was still owed, known as equity. Not only did they remove the increased equity in the home as cash, most people were paying lower monthly payments.
“People have literally picked up their house at the foundations and shook it upside down like a piggy bank,” said Ed Smith, chief executive of the Plaza Financial Group, a mortgage brokerage firm in La Mesa, Calif., near San Diego.
November 4, 2006
I normally resist the routine pedantry of pointing out the misusage of the word "literally." But this one's a lulu:
Posted by Ann Althouse at 5:19 PM