In late 2008 and early 2009, taking out a HELOC loan was very difficult. Burned by defaults and falling home prices, lenders were exercising extreme caution when it came to underwriting decisions.

But, 2010 may be the year that frozen HELOCs begin to thaw.

PBS’ Nightly Business Report explains:

“As housing prices and the economy begin to stabilize, many lenders are writing lines again. They’re not the unbelievable deals they used to be, but they can still be a relatively cheap way to borrow. For example, it can be wise to pay for a new car with funds from a HELOC, since some auto loans charge far higher interest rates than HELOCS do.”

If your area wasn’t hit too hard with the real estate downturn or if you hold a significant amount of equity due to paying down your mortgage, you may be able to qualify for a low-interest HELOC. Give it a try…even if it didn’t look so promising last year.

See Also:

How to Qualify for a HELOC

Tags | Heloc, HELOC Lenders, home equity line of credit