Homeowners in states like California and New York have seen the worst of the mortgage crisis. But, negative equity seems to be spreading inland – making more homeowners ineligible for HELOC loans. A recent report summarized on the Calculated Risk blog explains: “Going forward, the largest increases in the share of negative equity will most [...] [...more]
When deciding how to leverage the money in their homes, borrowers often have a difficult time deciding whether to take out a home equity line of credit (HELOC) or a home equity installment loan. There’s no right answer. Instead, the best answer often depends on the reason the borrower wants a second mortgage loan. BankingMyWay [...] [...more]
Some parents believe that paying for a kid to go to college is a good reason to take out a HELOC. But, almost all experts agree that people should use extreme caution when using a home equity line of credit to fund tuition expenses. CNBC On the Money expert Carmen Wong Ulrich explains: “Whether it’s [...] [...more]
Due to the troubled economy, many homeowners are looking for sources of emergency cash. If you need funds to get you through the next few months because of unemployment or other circumstances, consider the source carefully. Credit Cards: Using a credit card cash advance is an easy and quick way to withdraw a large sum [...] [...more]
The federal loan modification program, Making Home Affordable, provides a way for struggling homeowners to lower their monthly mortgage payments. Qualifying applicants can receive an interest rate reduction, making their new rate as low as 2% for a minimum of five years. They can also receive an annual incentive of up to $1,000, applied to [...] [...more]
As banks are hit hard by the the financial crisis, they become more stingy with their credit card offers. In many cases, they’re cutting the lines of existing customers and increasing their rates. The American Chronicle reports: “Today, rates for more than half of all cardholders have skyrocketed while interest rates are at their lowest [...] [...more]
Many potential borrowers worry that their HELOC will show up as a giant (and sometimes maxed-out) credit card on their FICO reports. But, in most cases, there’s no need for concern. Credit.com explains: “The majority of time a HELOC is reported to the credit bureaus it is also accompanied by descriptive text, called a narrative [...] [...more]
If you’re thinking about taking out a reverse mortgage, consider a HELOC instead. Financial experts on MSNBC suggest that home equity lines of credit are a better bet: “Reverse mortgages work by basically taking out the equity in your home — selling back what you own in the home — however, reverse mortgages in particular [...] [...more]
In the midst of this economic crisis, a growing number of HELOC borrowers are going to credit counseling agencies to get help with their debt. Unfortunately, some are surprised to find that their HELOC debit card is not the same as a credit card and their outstanding balance cannot be renegotiated or reduced in the [...] [...more]
If you don’t pay your home equity line of credit, your HELOC lender could force foreclosure proceedings. But, many HELOC lenders are reluctant to start the process and would rather work out a solution with borrowers. The San Francisco Chronicle explains: “…Most second trust holders are reluctant to institute foreclosure proceedings. There is an expense [...] [...more]
