- Mortgage Equity Withdrawal - MEW
- The removal of equity from the value of a home through the use of a loan against the market value of the property. A mortgage equity withdrawal (MEW) reduces the real value of a property by the number of new liabilities against it.
During times of economic boom and rising home prices, mortgage equity withdrawals are a common practice. If the value of the property increases at the same rate as the mortgage equity withdrawals, the real value of the home remains constant. Issues arise, as they did in the financial crisis of 2007-2009, where home prices decrease to below the value of the liabilities outstanding - this creates a negative real value of the property to the owner.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Mortgage Equity Withdrawal — The amount of equity that consumers withdraw from their homes through home equity loans or lines of credit and cash out refinances. Mortgage equity withdrawal is a relevant variable in the prediction of consumer spending and, therefore, gross… … Investment dictionary
Home equity loan — A home equity loan (sometimes abbreviated HEL) is a type of loan in which the borrower uses the equity in their home as collateral. These loans are sometimes useful to help finance major home repairs, medical bills or college education. A home… … Wikipedia
Commercial mortgage — Finance Financial markets Bond market … Wikipedia
History of private equity and venture capital — The history of private equity and venture capital and the development of these asset classes has occurred through a series of boom and bust cycles since the middle of the 20th century. Within the broader private equity industry, two distinct sub… … Wikipedia
ОТВЛЕЧЕНИЕ КАПИТАЛА — (equity withdrawal) Получение нового или увеличение уже существующего ипотечного кредита (mortgage) на цели, отличные от покупки или улучшения недвижимости, выступающей обеспечением этого кредита. Отвлечение капитала иногда вызывает критику за то … Экономический словарь
United States — a republic in the N Western Hemisphere comprising 48 conterminous states, the District of Columbia, and Alaska in North America, and Hawaii in the N Pacific. 267,954,767; conterminous United States, 3,022,387 sq. mi. (7,827,982 sq. km); with… … Universalium
Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… … Universalium
United Kingdom — a kingdom in NW Europe, consisting of Great Britain and Northern Ireland: formerly comprising Great Britain and Ireland 1801 1922. 58,610,182; 94,242 sq. mi. (244,100 sq. km). Cap.: London. Abbr.: U.K. Official name, United Kingdom of Great… … Universalium
Late-2000s financial crisis — The TED spread (in red) increased significantly during the financial crisis, reflecting an increase in perceived credit risk … Wikipedia
Citigroup — Not to be confused with CIT Group, another large financial services company. Citigroup Inc. Type Public Traded as NYSE: … Wikipedia
ECONOMIC AFFAIRS — THE PRE MANDATE (LATE OTTOMAN) PERIOD Geography and Borders In September 1923 a new political entity was formally recognized by the international community. Palestine, or Ereẓ Israel as Jews have continued to refer to it for 2,000 years,… … Encyclopedia of Judaism