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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, due [...] [...more]
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Due to recent cuts, the prime rate is very low right now (5.25%). That means most HELOC borrowers are paying less in interest every month. Some financial advisers have suggested that the rate cuts make today a smart time to take out an adjustable rate home equity line. However, not everyone agrees. While HELOC rates are [...] [...more]
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Some HELOC lenders are no longer agreeing to first-mortgage refinances, forcing customers to either payoff or refinance their HELOCs before refinancing their original home loans. How Can This Happen? When a borrower takes out a HELOC, the HELOC lender agrees to be subordinate to the first mortgage lender. In a nutshell: if the home must be foreclosed [...] [...more]
