New credit card legislation takes effect later this month. However, borrowers have already encountered negative consequences from the more stringent requirements including reduced lines, higher fees, and increased interest rates. Borrowers dealing with undesirable changes from their credit card issuers may be able to mitigate some of these problems by transferring their debt to a [...] [...more]
A growing number of homeowners are walking away from their homes, giving their keys and their worries to the bank. It’s important to note, however, that this isn’t aways possible for borrowers who have a HELOC. Homeowners living in a “recourse state” will still be responsible to pay off their home equity line, even if [...] [...more]
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]
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]
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]
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]
Under the federal Truth in Lending Act, the HELOC consumer is granted certain rights. Most importantly, you have the right to be given information about your HELOC before agreeing to the loan or paying any fees. You also have the right to cancel your home equity line of credit within a specified time frame. Read [...] [...more]
Homeowners have two major home equity borrowing options: the home equity loan and the home equity line of credit (HELOC). Both options allow homeowners to take out a loan based on the existing equity in their properties. In both cases, the property is used as collateral and may be foreclosed upon should the borrower default [...] [...more]
If you are using over 40% of your available credit, paying off your credit cards with a home equity line of credit may improve your credit score. However, there are some risks involved. Applying and opening a home equity line of credit will give your credit score a ding. However, you may be able to [...] [...more]
More than one homeowner has signed the paperwork for a home equity line of credit, only to decide hours later that the high fees and risk to the property’s title just aren’t worth it. Fortunately, HELOC borrowers are legally permitted to back out of a deal if they notify the lender within three business days. [...] [...more]
