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]
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]
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]
Recent rate cuts have made it possible for homeowners to take out a HELOC at record low rates. For those who can qualify, it’s extremely tempting to take out a home equity line of credit. However, unlike second mortgage loans, HELOCs have rates that can adjust upward. Reuters reports: “Home equity lines of credit (HELOC) [...] [...more]
In past years, I’ve argued that a home equity line of credit is generally a smarter choice than a home equity loan. Lines of credit allow borrowers to withdraw money only when they need it and pay interest only when the money is withdrawn. Pay down the line and stop paying interest. However, now that [...] [...more]
Homeowners have two major home equity borrowing options: the home equity loan and the home equity line of credit (HELOC). Both options allow homeowners to take out a loan based on the existing equity in their properties. In both cases, the property is used as collateral and may be foreclosed upon should the borrower default [...] [...more]
In the midst of all the HELOC freeze turmoil, most major lenders continue to advertise. Just today I received an email advertising home equity lines of credit from Wells Fargo. They say: “Rates are at their lowest levels in over 3 Years — there’s never been a better time to apply.” That may be true [...] [...more]
A new loan product called a “shared equity agreement” allows borrowers to take out money and pay nothing back until they sell their property. Sound too good to be true? That’s because it is. Here’s the catch: the borrower must agree to pay back the money borrowed plus half of the home’s appreciation value between [...] [...more]
A new report from J.D. Power and Associates ranks home equity lenders according to the results of a customer satisfaction survey. As I reported earlier this week, overall customer satisfaction has improved since last year. However, not all HELOC lenders faired equally. Here are the results, on a scale of one to one-thousand: Bank of [...] [...more]
In the midst of HELOC line reductions and increasingly strict lending standards, a new study from J.D. Power and Associates comes as a surprise. Apparently, HELOC customer satisfaction is up this year: “Despite an economy affected by a stagnant housing market, decreasing home values and upheaval among lenders, overall customer satisfaction with the home equity [...] [...more]
