June 30, 2008
The Next Big Chill: HELOCs
You thought it was hard to get a loan even if you had perfect credit? Well, how would you feel if you already had a line of credit to suddenly find that it is frozen?
That is what seems to be the latest step in the credit crunch that is now affecting homeowners. And not just newly minted homeowners who may only have little equity in their home, given recent market declines. As reported in the Wall Street Journal today, banks are taking this new move to protect themselves in light of the declining housing market. Fearful that they are lending out more than the collateral is worth, banks are pulling back on the easy credit they doled out a few years back.
Homeowners in the midst of drawing upon their home equity line of credit find themselves without any credit and no cash to pay for those purchases they had planned. So, if you are a homeowner and planning to draw upon some funds, check first to see that your line hasn’t been reduced. And if you are a potential homebuyer, just another indication that credit is no longer so easy to come by. What will be next?
Teek said:
Jenny,
Great article and right on target.
Homeowners that want loans, but can no longer get equity from their homes still have a choice.
Visit: http://www.afsloansonline.com for unsecured home improvement loans or unsecured personal loans for vacations, bills, weddings or whatever the reason.
They can help you find unsecured loans and personal credit lines at competitive rates. That’s the key. None of this payday 99% interest stuff.
Read through thier site and maybe you can still get the financing you were planning on.
The catch - You must have very good credit.
July 1, 2008 7:22 AM
David said:
People will have to (re)-learn that credit is not money. Credit is a liability, not an asset. Cash is an asset, not liability.
July 1, 2008 8:09 AM