Mortgage

New Day is a mortgage company that specializes in home loans for veterans. They offer no money down initial loans with no cost refi loans. The ads encourage taking a new loan every time the value of the house increases. Over the past ten years houses have increased 5% per year on average. A $300,000 home will increase in value to $488,000 in ten years. This person may have qualified for $300,000 loan but his income may not have kept up and he no longer qualifies for a larger loan. Since he has borrowed every year he has no equity and is in danger of losing the home. If home values suddenly decline as was the case in the last mortgage crisis he could be in trouble. This is all too familiar and happened only a few years ago in 2008.