Many HELOC borrowers are surprised when they’re turned down for mortgage refinancing programs. Why are banks sending them away? Because a growing number of HELOC / second mortgage lenders are refusing to subordinate their loans (agree to be paid after the primary lender in case of foreclosure). The Chicago Tribune reports: “Find out if your [...] [...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 [...] [...more]
Many desperate homeowners are concerned that their HELOC lenders won’t give approval for their participation in the federal Making Home Affordable mortgage modification program. Good news: you do not need to get approval from your HELOC lender in order to apply or have your mortgage modified. The Daily Camera explains some of the qualifications necessary: [...] [...more]
Nationwide Bank is offering an extremely low rate on home equity lines of credit (HELOCs) right now. Their advertised interest: 3.25%. Bankaholic reports: “Nationwide Bank has about the best deal around on HELOCs — if you can get one… Its line of credit is available in all states, carries no annual fee, and pays the [...] [...more]
According to recent statistics, home equity loan delinquencies have skyrocketed to a record number. Bloomberg reports: “Late payments on home-equity loans rose to a record in 2008’s fourth quarter as job losses and the deepening recession put a strain on borrowers, the American Bankers Association reported. Delinquencies increased to 3.03 percent of accounts in the [...] [...more]
In the current economy, many homeowners are worried about losing their jobs. Some experts suggest that taking out a home equity line of credit (HELOC) is a smart way to be prepared for a few months without any paychecks coming in. BankingMyWay reports: “One way is to get a home equity line of credit, or [...] [...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 homeowners worry that a HELOC freeze will have a negative affect on their credit. Although this is a possibility if your HELOC shows up as a revolving line credit reports, most people should not see a dramatic change. WLNS News reports: “For those carrying a balance, fortunately, most credit reports differentiate credit cards from [...] [...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 for [...] [...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 [...] [...more]
