Southern Californians are materializing their dreams of making a Hollywood movie, buying fancy cars, boats, second homes and even living on their home equity. Loan providers are warning borrowers from using home-equity money on idealistic acquisitions like luxury cars, which have long-term payoffs.
Only a lack of imagination or really bad credit stands in the way of funding the next hit at Sundance or a new Porsche Boxster to drive to the premiere. Borrowers who want the money for items such as college tuition are advised to get home-equity loans, which feature set interest rates and payments that are amortized over a longer span.
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