Article : Home equity lines of credit yanked

Last Updated: Wednesday, Feb 20 2008 12:04 PM

About two weeks ago, real estate agent Lynette Madden was on the phone with a client who had just received a disturbing letter in the mail.

Countrywide Home Loans was suspending his home equity line of credit, the letter read, because the company believed the value of his property had significantly declined from the date when the loan was made. ...read all...

Article : Shelter from the Storm

By Maggie Gilmour Fri Feb 15, 8:08 AM ET

The numbers are grim, even if they seem familiar by now. In 2007, lenders filed foreclosure notices on 90,782 homes in Illinois, up 25.3% from a year earlier. That tally puts the state among the top 10 nationally in foreclosures, says RealtyTrac, an online real-estate database. The figures are likely to go even higher in 2008. Subprime mortgages with adjustable rates -- given to home buyers with less than pristine credit -- will become more costly in 2008 as teaser rates expire. The Center for Responsible Lending predicts that in the next two to three years, 25,000 people in the Cook County area will lose their homes...read all...

Home Equity Line of Credit | News

S&P: Mortgage bond credit worsens
Wed, Feb 27 2008, 19:59 GMT


Omega Executes Investment Agreement for $20,000,000 "Equity Line of Credit" With Investment Banker
updated 9:36 a.m. ET Feb. 25, 2008

JPMorgan Chase details loan standards
February 27, 2008 5:09 PM ET

Link to a forum : Home Equity Loan or Home Equity Line of Credit??

Tue, Apr 17, 07 (6 posts)
First post of this forum :

"We are doing some major renovations in our home. We just don't know whether to apply for a home equity loan or a HELOC. The interest rates are different (HELOC is prime+.5), home equity loan is fixed. Is it better to take out the home equity loan with fixed rate and start paying on whole amount? Or apply for the HELOC, make payments on what we use but pay the higher interest rate? Also, is there a home equity loan where you just pay the interest?

I might add that this loan is to pay for renovations to our new home. When we sell our old home, the loan will be paid off. Any help in deciding which is the best loan to apply for will be greatly appreciated. It is so confusing !!"

see this forum at : http://ths.gardenweb.com/forums/load/finance/msg041507205839.html?9

Link to a forum : Home equity line of credit or refinance

Mon, Feb 4, 08 (5 posts)
First post of this forum :

"We are going to be undergoing a major remodel costs of which will hover between $150-160. We are six years into a 15 year loan and have paid off all but $150. Which would be the best way to go given the way the economy is going?

We would like to pay off the loan within 5-6 years if all goes well with my husband's company. Usually he gets an end of the year bonus (last year it was his entire's year salary) but the forecast is grim for the next little while. Any advise would be appreciated."

see this forum at : http://ths.gardenweb.com/forums/load/finance/msg0220520825427.html?4

Home Equity Line of Credit | News & Articles

Is Home Equity Debt Inherently Evil?By Hayli Morison | January 14th, 2008

Home equity rates are finally falling thanks to the Federal Reserve

By Carolyn Siegel
Interest.com Associate Editor

Home Equity Line Basics Submitted By: Carrie Reeder

All About Home Equity Line of Credit Loans Submitted By: Tim Paul

Refinancing Your Home Equity Line of Credit

Home Equity Loan vs. Home Equity Line of Credit

Financing Home Loans in 2008

Be ready for a tough year financially...

Here are the latest Home Equity Loan Videos available.

Unless you are a high-income earner with little debt, the year ahead could be a tough one as inflation is expected to continue to rise in the short term.

January 12, 2008

By Laura du Preez


If you are struggling to keep your head above water financially now, it's time to implement some corrective measures, because difficult times are likely to continue, with some relief likely only towards the latter half of the year.

If you have incurred a lot of debt, your most immediate danger is keeping up high debt repayments while the cost of living increases.

Set up a budget
The first and most important thing you need to do is to draw up a budget. A budget showing your income and all your expenses will enable you to determine what is happening to your money.

This is a good time to add up all your expenses over the past year and work out on average what you are spending on your home loan or rent, electricity and water, groceries, transport, insurance, clothing, school fees, security, and so on.

You need to ascertain whether you are spending more than you are earning and, if so, to take the necessary steps to ensure that you live within your means.

Prem Govender, the chairperson of the Financial Planning Institute, says you should reduce your debts as much as possible.

You may, for example, need to trade in an expensive vehicle you are still paying for for one that is cheaper both to run and to repay.

Govender says you should put on hold any plans to buy luxuries, especially if you need to borrow funds to finance such items.

If you must incur debt for essential items, she says, make sure you can afford to repay that debt even if interest rates do go up further.

Consolidate you debts
There may also be ways you can reduce your debt repayments by consolidating your debts. For example, if you have a flexible home loan and have repaid some of the loan, you could borrow more from that loan to repay a credit card debt that is attracting a higher rate of interest than your home loan.

The higher home loan should incur less interest than the original home loan and credit card, but if you want to save on the interest you will be charged, you will need to make increased payments into your home loan to settle the additional debt over the same period as you would have repaid the credit card.


Source: http://www.persfin.co.za/index.php?fArticleId=4203435&fSectionId=596&fSetId=300