In past years, I’ve argued that a home equity line of credit is generally a smarter choice than a home equity loan. Lines of credit allow borrowers to withdraw money only when they need it and pay interest only when the money is withdrawn. Pay down the line and stop paying interest. However, now that banks [...] [...more]
As I’ve previously posted, using a home equity line to invest in stocks is a bad idea. Since HELOC rates are down and stocks are falling, this idea is coming up more often in conversations and financial forums. Three words: Don’t Do It. Stock investing is making a wager with your home. If stocks fall further, [...] [...more]
Because of the recent home equity line of credit freezes, many borrowers are choosing to withdraw their available balance and save it for future use. This isn’t a good strategy if you don’t plan on using the money soon - your withdrawal will cost you. However, low interest rates make it possible for borrowers to [...] [...more]
Several stocks have plummeted to half their value from earlier in the year, and many experts are saying that now is the time to buy low. But, if you don’t have cash on hand, it’s best to avoid draining your home equity line of credit to play the market. Chris Farrell from American Public Media Marketplace [...] [...more]
Since home equity lines of credit have become so difficult, there’s been an increase of companies offering “HELOC alternatives.” Generally, these are just your average personal loans aimed at creditworthy customers. First Again is one such company. Their recent press release explains: “According to Gary Miller, cofounder and CEO of FirstAgain, [...] [...more]
Now that home equity lines are more difficult to take out, college students are looking to other ways to make tuition payments. Mercury News reports: “The bursting housing bubble and tighter lending requirements makes it harder for parents to rely on home equity to foot tuition bills.“A lot of upper-income families, particularly in the Bay Area, [...] [...more]
If your home equity line of credit has been frozen illegally, you may be able to appeal the decision. According to a recent Market Watch article, there are several ways to go about complaining. Here’s my summary of the options with additional links and phone numbers, which will hopefully be of use to a few [...] [...more]
Don’t plan on taking out a home equity line of credit from J.P. Morgan anytime soon. According to MarketWatch, their HELOC originations dropped a whopping 77% when compared to last year: “Home equity loan origination dropped more dramatically, falling 77% on a year-to-year basis. “Declines reflect tighter underwriting standards and the overall reduction in liquidity in [...] [...more]
A new program is being advertised to help lenders detect potential fraud in home equity lines of credit / loans. A press release for the FraudMark software claims that it can identify up to 60% of fraudulent loans by reviewing 10% of the total applications. “BasePoint Analytics(TM), a leading provider of [...] [...more]
This has been the big question of the past few months. Some financial advisers suggest that borrowers cash out their HELOCs to protect against possible freezes. But, others are suggesting that panic-stricken withdrawals are a bad bet. KSN News reports: “If they are paying interest just to hold that money to me that’s counterproductive,” said Darryl Bauchert [...] [...more]
