Calculated Risk: More on Banks Reducing HELOCs
by Tom on July 7, 2008
in Market Musings, Mortgage Matters, banks
Check out what CR has to say on this issue.A couple of thoughts about this:1. If banks are cutting existing home equity lines of credit, you can be pretty much guaranteed that unless you are an A+ borrower, it’s going to be harder and harder to do what’s known as a piggy back mortgage (where you do a first mortgage for 80% and a second for the difference between that and your downpayment).2. If you have an equity line and you are thinking or planning to use it for something major some time soon, you might want to think seriously about borrowing it sooner even if it means that you end up paying more interest on it.3. This underscores the importance of planning ahead in today’s market and working with professionals who know what is going on in the market.If I can be of help, let me know.Tom
