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]
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]
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]
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]
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]
