According to reports, some home equity line of credit lenders are freezing accounts based on declining credit scores. The Arizona Republic reports: “It also might be smart to check your credit report, evaluate your credit score and make fixes if necessary. Sometimes a drop in credit quality triggers a freeze, not just a declining home value. Unfortunately, a [...] [...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. Borrowers [...] [...more]
If your home equity line has recently been frozen, beware of “quick-fix” alternatives, such as the Rex Agreement now being advertised. Rex, Inc. is offering homeowners the chance to tap into their equity, despite the fact that their bank has reduced or canceled their lines. Here’s what the company has to say: “The REX Agreement, available in 13 [...] [...more]
Dozens of major banks have frozen home equity lines of credit. Due to the large number of frozen HELOCs, some financial advisers are recommending that homeowners tap their equity before it becomes too late. Not everyone agrees, however. Some more conservative advisers suggest that homeowners wait it out and avoid taking out money prematurely. Conde Nast’s Portfolio.com [...] [...more]
As students are preparing for September courses, now is a good time to remind families that the home equity line is not the best source of college tuition funds. BusinessWeek reports that many borrowers are using their home equity loans to pay for school - even if it’s just out of convenience: “A forthcoming survey by student-lending [...] [...more]
Before filling out that home equity line application, consider getting rid of your private mortgage insurance (PMI). If you put less than 20% down on your home, chances are the bank charges you PMI every month - fees that could exceed a thousand dollars a year. Most borrowers are able to get rid of PMI during [...] [...more]
HELOC borrowers may soon have a new line of protection against identity theft. A law coming into effect later this year requires banks to add security measures fighting against identity thieves. Soon all banks offering home equity line of credit loans will need to have an identity protection program. The Chicago Tribune reports: “One of the schemes [...] [...more]
If your HELOC has been frozen or reduced, you may be able to fight back. Many home equity lenders are offering borrowers the chance to reverse these actions by proving their home’s value. Kiplinger reports: “Lenders who pull the plug will invite you to contact them to discuss your situation and appeal the decision. You may have [...] [...more]
If you’re a homeowner looking to purchase a new property, you may be able to use a home equity line of credit (HELOC) as a down payment. In order for this to work, your current property must have a significant amount of equity (usually at least $20,000 worth). If you are planning to sell your current [...] [...more]
Many home equity lines offer an interest-only feature. Interest-only HELOCs are risky to the borrower; however they do provide more manageable monthly payments during the first few years. Here’s how these credit lines work: First - The interest-only HELOC is opened. The borrower agrees to a set number of years for the withdrawal period and a set [...] [...more]
