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]
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]
A lot of homeowners are drooling over recent rate cuts and considering jumping on the refinance band-wagon. If these low rates are tempting you as well, be aware that your home equity line of credit could impede your decision to refinance. In order to change the original loan, you need to get permission from the [...] [...more]
Interest on home equity lines of credit are extremely low right now, even when compared to traditional home loans. Some financial advisers say that borrowers should consider taking out a HELOC rather than doing a traditional refinance if they want to save on withdrawing equity. CNN Money reports: “HELOCs can be hard to get right [...] [...more]
