Use Caution When Considering Home Eauitv Loans
the new tax code, every bank and
mortgage twipiny in America la
puahing this concept. Basically with
this loan, you are converting your
home equity to a single line of credit.
A typical home equity loan works
something like this: The bank will
allow up to borrow up to 80 percent of
the equity in your home, lees the mor
tgage value, with the loan not to ex
ceed your annual salary. You receive
either a credit card and -or checks
and redeve monthly statements on
your account.
The salea pitch is that you can still
the blanket of your home
On the surface, the idea I* attractive,
but there an aerioui pitfalls to tUs
credit approach.
The biggest problem with home
equity loans is human nature. Take a
look at how many of us utilise our
credit cards. With a regular credit
card, we teod to charge up to our
credit Umit. At that point, we arrange
our purchases and payments so that a
balance is just below the
limit. The critical point is that there
is a limit.
Home equity loans have a charge
limit near the equity in your home.
There is no credit ceiling until your
home equity, which is the major
financial asset for most Americans,
Parking In Front
Of Courthouse
Now Prohibited
Folks won't be able to park in
front of the Madison County Cour
thouse anymore - at least, not
without risking a parking ticket.
The Marshall Board of
Aldermen unanimously agreed
last week to place "No Parking''
signs in front of the courthouse,
and to ask municipal police of
ficers to enforce the regulation.
The board had received several
requests for the signs because
school buses and other large
vehicles have had difficulty turn
ing left onto Main Street from
Bridge Street when cars are park
ed in front of the courthouse.
Signs with a different message
also won board approval last
week.
Marshall officials, after receiv
ing complaints from nearby
residents, agreed to post "No
Dumping" signs on Smith Hollow
Road. Residents complained that
the dumping of garbage along the
road had created a haven for rats
and created a health hazard.
The board agreed to ask
Madison County Sheriff Dedrick
Brown to enforce the regulation if
the dumping continues.
In other action, the board
agreed to help pay for two planters
to be placed in town, and for
several SO-gallon drums to be used
as garbage containers
The board meeting has original
ly been scheduled for April 30, but
had to be postponed by one day
when Alderman John Dodson fail
ed to show up for the meeting.
Alderman Ed NUes had previously
told the board he would be out of
town on that day, and that left only
Mayor Anita Ward, a non-voting
member of the board, and Alder
man Faye Reid.
Because there was no quorum,
the meeting was continued until
the following day.
Weaverville Board
Rescinds Ordiirace
The WeaverviUe Town Council
recently rescinded an earlier or
dinance prohibiting the use of town
vehicles for the purpose of transpor
tation to and from home and unof
ficial business.
"We've received calls about town
vehicles in West Asheville," said
Alderman David Bell. "We had to do
something when people call in and
complain."
WeaverviUe Mayor Reese Lasher
pointed out that the complaints were
from anonymous sources.
"Those were anonymous calls,"
Lasher said. "If people won't give
their names, how do we know if it's
the truth?"
After lengthy discussion, the board
agreed to rescind the ordinance, ap
proved in March, and ae-enact the old
policy, which enables town officials to
commute and make incidental stops
when on call or official business.
The board also heard from
members of the volunteer fire depart
ment who came to show support for
the town's only paid fireman,
Douglas Sims.
Sims was recently reprimanded by
Town Manager Charles Home for
allegedly playing basketball while oo
duty.
According to fireman John Penley,
Sims was washing the town's two fire
trucks while volunteers were playing
ball. Sims stopped the ball from going
over an embankment and threw it
back. He was then reprimanded by
Home with a letter to be placed in his
personnel file for a period of 90 day*.
The board agreed to investigate the
matter and see that Sims is given a
meeting last Wednesday to review
Home, the town manager.
At the continuation meeting, the
board met in executive session for
nearly two hours to review Home's
Job performance. No action was
taken at last Wednesday's session.
_.r. ;
Ron Holland's Report
is gone. What hapen* If the following
occur*:
? You decide to buy another home
and there is no equity remaining for a
down payment 7
? You are laid off, and are unable to
make the monthly payments on the
loan?
? Interest rates rise so that the in
terest on the loan, which is tied to the
prime rate, is no longer reasonable?
? The government changes the tax
- ?
code again so that the Interact is no
longer deductible?
? Yea get ready to retire and all of
your home equity is dispersed among
depreciating goods and services?
Credit is like Are - a useful tool, but
it must be handled with care. Home
equity loans aren't just another type
of credit card, but an entirely new
type of credit. You exchange stable,
appreciating home value for
depreciating consumer goods and
Burnsville Man
Charged With Armed
Robbery, Stabbing
A Burnsville man has been charged
with armed robbery and assault with
a deadly weapon in connection with
the weekend stabbing and robbery of
a Madison County man.
Richard Marlow, who lives in the
Forks of Ivy community near the
Madison-Buncombe county line, was
robbed of $12 in cash and stabbed in
the stomach and arm, said Madison
County Sheriff Dedrick Brown.
"They knifed him in the stomach
and cut his arm to the bone," Brown
said.
Authorities say the robbery took
place in Yancey County, while the
stabbing occurred on the Madison
County side of the line.
Marlow was transported to
Memorial Mission Hospital and
released after being treated for his in
juries.
Yancey authorities have charged
Carroll Penland Jr. with armed rob
bery, while Madison authorities have
charged him with assault with a
deadly weapon inflicting serious in
jury, Brown said.
The Madison Sheriff's Department
was kept busy over the weekend on a
number of drunk and disorderly calls
and domestic disputes, Brown said.
Madison deputies were notified by
Rutherford County authorities that
two men wanted on breaking and
entering and drug charges may be in
the county, said Chief Deputy Dal
Peek.
Deputies discovered that the men
had been in Madison County, but left
before Rutherford authorities had
given them the message.
Madison County authorities are
also looking for juvenile offenders
from Crossnore, Peek said.
Bullet-Proof Vest
Fund Established
A fund has been set up at First
Citizens Bank in Marshall to raise
money to purchase bullet-proof vests
for the Madison County Sheriff's
Department.
A group of concerned citizens has
set up the fund, and is planning a
number of fund-raising events for
later in the spring.
The department is in need of five or
six vests, at a cost of more than $300
each, said Madison County Chief
Deputy Dal Peek.
MARS THEATRE
NowShowing! SHOWTIME: 7:30
Black Widow
May 7, 8, 9, 1987
M. V
services. The risk you run is waking
up several years down the road and
discovering that your borne equity
has ben replaced with dejmciating
automobiles, clothes, past vacations,
etc.
Home equity loans are a credit tool
worth considering, but make sure you
understand the dangers and have the
temperament to properly utilize the
?ervice.
Baa Holland is vice prmMmt el ta
vestmeats with First Tryea
Securities. His ftnaaciai column will
appear hi The News Reeeri ea a
regular basis.
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