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 HELOC. Reuters [...] [...more]
Need to repair your roof or update your kitchen? In many cases, a HELOC can help you borrow money at a lower interest rate than a credit card or unsecured loan. New Jersey Business News explains: “The closing costs for a home equity product are often substantially less than those associated with a first mortgage, giving it [...] [...more]
Now that HELOC rates are so low, many borrowers are looking for smart ways to use their lines. In a recent Scripps News column, a reader asked if he should use a HELOC to pay off his car loan. Columnist Steve Bucci pointed out both the pros and cons and said that the reader should weigh [...] [...more]
Now that HELOC rates are so low, many homeowners are tempted to pay off their original home loans with home equity. While this strategy may seem like a smart move at first glance, there are some serious risks. Banking My Way explains: “…There is a serious problem — because HELOC rates are variable, you can’t be sure [...] [...more]
Some financial experts advise clients to take out a HELOC as a security against potential job loss. But, this strategy only works if the homeowner is currently employed when the equity loan closes. WalletPop reports: “That’s a possible step to take before you lose your job, but not after you’ve lost it. Why? You most likely won’t [...] [...more]
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 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 [...] [...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 back [...] [...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 practical option. [...] [...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 puts it [...] [...more]
