Florida’s new Senate President is speaking out against banks that hoard federal bailout money while simultaneously reducing customer’s HELOC lines. A recent release from his office explains: “…Mike Haridopolos today called for hearings in Tallassee to investigate claims that after banks received hundreds of billions in federal bailout money they squeezed consumers and fraudulently or [...] [...more]
Chase Manhattan Bank is currently facing a class action suit after freezing a few too many HELOC lines. The lead plantiff, Mary Yakas, filed the suit after her HELOC was frozen in late 2008 based on Chase’s Automated Valuation Model. Courthouse News Service reports: “Yakas filed a class action, alleging breach of contract and unjust [...] [...more]
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 [...] [...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, [...] [...more]
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 [...] [...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 [...] [...more]
It’s been months since banks first began closing HELOC lines due to the worsening real estate market. But, customers continue to receive HELOC freeze and closure notices in the mail. Monitor Bank Rates gives this concerning antedote: “A close friend of mine had his HELOC closed by JP Morgage Chase on a home he and [...] [...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 [...] [...more]
If you’ve been waiting to take advantage of low HELOC rates, now may be the time. PenFed is offering HELOCs at just 3.25%. Monitor Bank Rates explains: “Pentagon Federal Credit Union is offering a home equity line of credit (HELOC) with an annual percentage yield (APR) of 3.25 percent. The rate is prime plus 0 [...] [...more]
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]
