If your home equity line of credit has been reduced by your lender, think twice before reapplying. There are two major drawbacks to canceling your current HELOC and opening a new line: First, your HELOC lender may be able to charge you an early cancellation fee. Second, your home may appraise for a lot less [...] [...more]
Here’s a disturbing trend: some HELOC lenders are refusing to let borrowers refinance their original home loans unless the borrowers go through their company. When a homeowner applies to refinance a property, he must first get permission from the second lien holder (i.e. the HELOC lender). In the past permission was taken for granted. But, [...] [...more]
Retailers are suffering this year, in part because consumers are no longer drawing on home equity lines of credit to fund unnecessary purchases. Bloomberg reports: “The drop in home values is contributing to the decline in spending because home equity was a major source of cash for purchases of expensive items like autos during the [...] [...more]
If your HELOC is scheduled to expire soon, think about renewing the line now. If you want to apply to renew the line, you may need months of preparation. MarketWatch reports: “If you have a home equity line of credit expiring in the next few months, don’t wait until the last minute. Wells Fargo recommends [...] [...more]
It’s possible to take out a HELOC with few or even no fees. Unlike other home loans, home equity lines are often designed to work more like a credit card. You only pay interest when you withdraw money and you aren’t stuck with a lot of unnecessary charges for taking out a line. However, in [...] [...more]
Here’s some advice you don’t hear every day. Contrary to what has always been suggested, some financial experts are telling HELOC borrowers to hold off on paying back their lines. Liz Pulliam Weston of the Los Angeles Times explains: “If you’re convinced you’re on track there and you don’t have any credit card debt, the [...] [...more]
If you’re a HELOC borrower facing foreclosure, Obama’s new Homeowner Affordability and Sustainability Plan has something for you. The housing plan has a provision that allows “mortgage cram-downs,” a highly controversial practice that allows bankruptcy judges to alter the terms of a mortgage at their discretion. Basically, when the plan becomes law, you could file [...] [...more]
If you have a HELOC from Wells Fargo, be on the look out for a “plain looking” envelope in the mail that alerts you to an interest rate adjustment to over 10%. According to borrower reports, some homeowners are receiving these increases without missing any payments or otherwise violating the terms of the home equity [...] [...more]
New statistics show that the year of denial may be coming to an end. Everyone knows that home prices have been declining, but no one wants to admit that their own properties have been affected. I’ll admit to watching homes in my neighborhood sell for less while rationalizing my own inflated value saying “Well, my [...] [...more]
Suffolk County Credit Union (NY) will soon offer residents a new type of HELOC, available for the purpose of making home improvements following universal design guidelines. These lines are intended to make homes a safer place for current and future residents, and include allowance for improvements such as installing safety valves to keep burning-hot water [...] [...more]
