I did hear from one client recently that their HELOC line had been reduced, which terrified them because that was their cushion.
Apparently had to do with their credit score, not property value.
You should have a lien recorded as a 2nd for $100K.
If it is from a bank or credit union, I would deposit your withdrawl into an account with them. It would be hard for them to bounce it and charge you a fee.
One thing that you should know is that if you are planning a refi of your first anytime soon, taking a draw on your HELOC will require cash out pricing on your refi to pay off both loans. If you aren’t planning a refi then it doesn’t matter.
Your rate/fee could be slightly higher and could be avoided if you know.
There are many people today that have access to funds that will push their liens to over 100% of todays value.
