BobS
Undoubtedly your line of credit has been permanently reduced to the new amount.
I had two big HOLOCs with WaMu that were more than cut in half a few months ago. Both were unused at the time, but I was hoping to use them some time in the future for investments, so it was kind of a blow.
Fearing a repeat, I recently drew them both down to the max and put them into a 3% money market account in a credit union. Am paying about 6% for the HELOCs, so the net cost of keeping this liquidity is about 3%.
