Choosing a home equity line of credit can be difficult. When speaking with HELOC lenders you may receive so many different terms and rates that it becomes practically impossible to keep track. This printable worksheet can help. Use it to organize the HELOC information lenders give you. By the time you’re finished speaking with three [...] [...more]
Homeowners in almost every state are feeling the effects of the home equity crisis. Those who took out large HELOC loans are now struggling with upside down mortgages and the possibility of foreclosure. But, borrowers in one state are less exposed. Thanks to more strident state laws, fewer Texans are facing these problems. The Houston [...] [...more]
The mortgage crisis has created an entire new industry: the foreclosure review company. These organizations review clients’ loan documents looking for mistakes. If a mistake is found (which apparently is pretty commonplace with high-risk California loans), the client can use it as leverage to stop the foreclosure proceedings. One such company, CancelYourForeclosure.com, explains their work: [...] [...more]
One of the advantages of borrowing money through a home equity line of credit is the possibility of deducting interest from your taxes. To put it simply: If your HELOC was used to improve your home, you may deduct interest on lines up to $1 million ($500,000 married filing separately). If your HELOC used for [...] [...more]
Good news for HELOC borrowers – thanks to an emergency federal rate cut, your home equity bill may be getting smaller. Today, the government slashed the federal funds rate by half a percentage point. The New York Times reports: “The Fed said in a statement that, because of weakening economic activity, it had cut the [...] [...more]
If you can no longer pay your first mortgage, your HELOC lender may be able to recoup some of their money via short sale or foreclosure. However, it’s rarely as simple as “turning in the keys.” There are two factors to consider when facing foreclosure: First, HELOCs are subordinate to primary home loans. This means [...] [...more]
Home equity line customers may soon be enjoying a decreased interest rate, if market rumors come to fruition. The Associated Press reports: “Many believe the Fed will ratchet down a key lending rate to banks — now at 2 percent. In turn, the prime lending rate — now at 5 percent — for certain credit [...] [...more]
If you already have some form of business credit, you may soon be receiving home equity line offers, encouraging you to use your home as collateral for a new loan. Seattle PI explains: “During the past few months I’ve seen that mortgage brokers have switched their marketing focus from big credit card spenders in need [...] [...more]
If you are using over 40% of your available credit, paying off your credit cards with a HELOC may improve your credit score. However, there are some risks involved. Applying and opening a HELOC will give your credit score a ding. However, you may be able to increase your score significantly by transferring your credit [...] [...more]
What a week. There has been some unprecedented instability amongst major home equity lenders during the past few days. Talk of a bailout, stock plunges, and bank failures have topped the headlines. Now it’s looking like only a handful of major HELOC lenders will come out of this. The next time you go to take [...] [...more]
