News and Music Discovery
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Loans From Hell

Consumer advocates are warning the public to stay away from a new type of home-equity loan, which many homeowners are finding attractive. Traditional home-equity loans require the borrower to have an equity stake of at least 10% before using the home as collateral. The new loans throw out such restrictions and allow homeowners to borrow tens of thousands of dollars without having any equity. NPR's Elaine Korry reports.

Copyright 1997 NPR