For a small number of homeowners, the mortgage crisis has created the “perfect storm”: rates have dropped significantly but their HELOC limits have stayed the same. For those who have a home equity line of credit with a limit exceeding the principle owed on their original home loan, it can be tempting to pay of [...] [...more]
Many homeowners worry that a HELOC freeze will have a negative affect on their credit. Although this is a possibility if your HELOC shows up as a revolving line credit reports, most people should not see a dramatic change. WLNS News reports: “For those carrying a balance, fortunately, most credit reports differentiate credit cards from [...] [...more]
Many retirees have trouble choosing between a home equity line of credit (HELOC) and a reverse mortgage. While HELOC loans are more widely available, reverse mortgages can only be taken out by homeowners over the age of 61. A recent release on Fox Business explains: “Reverse mortgages have become an increasingly important financial tool for [...] [...more]
As it has become more difficult to take out a home equity line of credit (HELOC), many borrowers have turned to friends and family members for help. If you’ve been asked to co-sign a HELOC loan, think twice before putting a pen to the dotted line. As a co-signer you may be required to pay [...] [...more]
Contractors and hardware stores may not be very busy this Spring. Experts predict that the decline in home equity lines of credit (HELOCs) means fewer home improvement projects around the nation. USA Today reports: “Spring is typically the big season for home remodeling, but this year’s falloff will be felt across many kinds of related [...] [...more]
Thousands of borrowers have already received HELCO freeze notices. If you’ve escaped the HELOC freeze so far, it may be time to evaluate your finances and figure out how a frozen home equity line would affect you. Examiner.com reports: “…What is the purpose of the HELOC? If it’s a rainy day fund like it is [...] [...more]
If you haven’t checked out our new Squidoo lens, HELOC Loans, you’re missing out! Take a look for a quick overview of the most important HELOC concepts including: HELOCs vs. home equity loans, qualifying for a HELOC, the HELOC freeze, pros and cons of equity loans, and more. Check it out, take the poll, and [...] [...more]
Low home equity lending rates have prompted many borrowers to pay off higher-interest debt with a HELOC loan. BankingMyWay reports: “Those carrying considerable debt may have difficulty using balance transfers to consolidate it all. New credit cards may not have a high enough limit. In these cases, a home equity loan may be a more [...] [...more]
Here’s some unexpected good news on the home equity front: e-Trade’s troubling home equity loan portfolio actually saw some improvements in the first couple months of 2009. Reuters explains: “Delinquent home equity loans — which represent E*Trade’s greatest exposure to loan losses — totaled $753 million in February, up 1 percent from the end of [...] [...more]
We all know that lenders have been freezing HELOC loans to hedge against foreclosures in the down market. But, many banks have another reason: current HELOC rates are lower than they planned for. Smart Money reports: “…Many lenders are not making much money off HELOCs. The cut-throat competition during the mortgage boom had lenders slashing [...] [...more]
