The federal loan modification program, Making Home Affordable, provides a way for struggling homeowners to lower their monthly mortgage payments. Qualifying applicants can receive an interest rate reduction, making their new rate as low as 2% for a minimum of five years. They can also receive an annual incentive of up to $1,000, applied to [...] [...more]
As banks are hit hard by the the financial crisis, they become more stingy with their credit card offers. In many cases, they’re cutting the lines of existing customers and increasing their rates. The American Chronicle reports: “Today, rates for more than half of all cardholders have skyrocketed while interest rates are at their lowest [...] [...more]
Many potential borrowers worry that their HELOC will show up as a giant (and sometimes maxed-out) credit card on their FICO reports. But, in most cases, there’s no need for concern. Credit.com explains: “The majority of time a HELOC is reported to the credit bureaus it is also accompanied by descriptive text, called a narrative [...] [...more]
If you’re thinking about taking out a reverse mortgage, consider a HELOC instead. Financial experts on MSNBC suggest that home equity lines of credit are a better bet: “Reverse mortgages work by basically taking out the equity in your home — selling back what you own in the home — however, reverse mortgages in particular [...] [...more]
In the midst of this economic crisis, a growing number of HELOC borrowers are going to credit counseling agencies to get help with their debt. Unfortunately, some are surprised to find that their HELOC debit card is not the same as a credit card and their outstanding balance cannot be renegotiated or reduced in the [...] [...more]
If you don’t pay your home equity line of credit, your HELOC lender could force foreclosure proceedings. But, many HELOC lenders are reluctant to start the process and would rather work out a solution with borrowers. The San Francisco Chronicle explains: “…Most second trust holders are reluctant to institute foreclosure proceedings. There is an expense [...] [...more]
If your home equity line of credit has been reduced by your lender, think twice before reapplying. There are two major drawbacks to canceling your current HELOC and opening a new line: First, your HELOC lender may be able to charge you an early cancellation fee. Second, your home may appraise for a lot less [...] [...more]
Here’s a disturbing trend: some HELOC lenders are refusing to let borrowers refinance their original home loans unless the borrowers go through their company. When a homeowner applies to refinance a property, he must first get permission from the second lien holder (i.e. the HELOC lender). In the past permission was taken for granted. But, [...] [...more]
Retailers are suffering this year, in part because consumers are no longer drawing on home equity lines of credit to fund unnecessary purchases. Bloomberg reports: “The drop in home values is contributing to the decline in spending because home equity was a major source of cash for purchases of expensive items like autos during the [...] [...more]
If your HELOC is scheduled to expire soon, think about renewing the line now. If you want to apply to renew the line, you may need months of preparation. MarketWatch reports: “If you have a home equity line of credit expiring in the next few months, don’t wait until the last minute. Wells Fargo recommends [...] [...more]
