Why Home Equity Loans Shouldn't Be Restricted

For a progressive business magazine, one whose editorials customarily reflect a refreshing blend of social consciousness with an understanding of business needs and economics, you made a disappointing call for restriction of the use of home-equity loans ("Let's put limits on home-equity loans," Editorials, July 6).

HELs are indeed used for many purposes other than just home improvements or education. Simply put, what is wrong with that? It is a middle-class tool for taking some of the sting out of financing by being able to deduct the interest and having a ready source of (not-too-expensive) finance available.

Furthermore, there is no inequity in this type of loan being available only to people who are homeowners. Lest we forget, homes are what drive our country's economic machine. The middle class that uses these loans and that buys these houses is in good part responsible for the success or failure of our country's economic life.

There is nothing inequitable about allowing that group ready (and interest-deductible) access to the capital it has worked so hard to secure.

Kalman A. Barson

Bridgewater, N.J.

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