Can’t use your house as an ATM this Christmas?

[djrobsd]

I’m curious how the housing market will affect holiday spending, as the equity lines dry up and people can’t tap their HELOCS to fund their holiday spending extraveganzas?

Are banks re-evaluating people’s HELOCS? I.e. if you have a $30,000 equity line that’s not being used, and your house is now worth 10% less, are banks taking these away from people as the housing market tightens?

I’d be curious if that could be the next big blow to housing, if banks will just start closing people’s lines of credit, since they know full well the house is no longer worth the equity line they granted the homeowner.. Especially those banks that gave people 110% equity lines. 😉

[citydweller]

Based on my experience this morning, I would have to say the answer to your question is “No”.

I got a HELOC with B of A in 2003, when my condo was appraised at about 35% more than it is worth now. I spent part of what was available to me, then locked the rate on that portion that I had borrowed (at 6.5%, when the adjustable rate would have been just 4.25%, but is now around 7.75%). I set up an automatic payment plan where my monthly payments were just deducted from my checking account.

So, today I called their customer service line to tell them that I would like to start making additional payments to pay down the principle. Before she would make the transfer she wanted to know if I was aware that I had X amount of dollars available!!! and for a limited time only, any money I borrowed would only be charged 6.25%!!!! until March of 2008!!!

What part of “paying down principle” didn’t she get? Why would I go from wanting to pay down my loan to wanting borrow even more? I guess some people would find 4 months of 6.25% interest too hard to resist.

And getting back to your question, if I did decide to borrow the X amount of dollars available to me, I would certainly be upside down, owing more than I could sell my condo for.

[citydweller]

Based on my experience this morning, I would have to say the answer to your question is “No”.

I got a HELOC with B of A in 2003, when my condo was appraised at about 35% more than it is worth now. I spent part of what was available to me, then locked the rate on that portion that I had borrowed (at 6.5%, when the adjustable rate would have been just 4.25%, but is now around 7.75%). I set up an automatic payment plan where my monthly payments were just deducted from my checking account.

So, today I called their customer service line to tell them that I would like to start making additional payments to pay down the principle. Before she would make the transfer she wanted to know if I was aware that I had X amount of dollars available!!! and for a limited time only, any money I borrowed would only be charged 6.25%!!!! until March of 2008!!!

What part of “paying down principle” didn’t she get? Why would I go from wanting to pay down my loan to wanting borrow even more? I guess some people would find 4 months of 6.25% interest too hard to resist.

And getting back to your question, if I did decide to borrow the X amount of dollars available to me, I would certainly be upside down, owing more than I could sell my condo for.

[citydweller]

Based on my experience this morning, I would have to say the answer to your question is “No”.

I got a HELOC with B of A in 2003, when my condo was appraised at about 35% more than it is worth now. I spent part of what was available to me, then locked the rate on that portion that I had borrowed (at 6.5%, when the adjustable rate would have been just 4.25%, but is now around 7.75%). I set up an automatic payment plan where my monthly payments were just deducted from my checking account.

So, today I called their customer service line to tell them that I would like to start making additional payments to pay down the principle. Before she would make the transfer she wanted to know if I was aware that I had X amount of dollars available!!! and for a limited time only, any money I borrowed would only be charged 6.25%!!!! until March of 2008!!!

What part of “paying down principle” didn’t she get? Why would I go from wanting to pay down my loan to wanting borrow even more? I guess some people would find 4 months of 6.25% interest too hard to resist.

And getting back to your question, if I did decide to borrow the X amount of dollars available to me, I would certainly be upside down, owing more than I could sell my condo for.

[citydweller]

Based on my experience this morning, I would have to say the answer to your question is “No”.

I got a HELOC with B of A in 2003, when my condo was appraised at about 35% more than it is worth now. I spent part of what was available to me, then locked the rate on that portion that I had borrowed (at 6.5%, when the adjustable rate would have been just 4.25%, but is now around 7.75%). I set up an automatic payment plan where my monthly payments were just deducted from my checking account.

So, today I called their customer service line to tell them that I would like to start making additional payments to pay down the principle. Before she would make the transfer she wanted to know if I was aware that I had X amount of dollars available!!! and for a limited time only, any money I borrowed would only be charged 6.25%!!!! until March of 2008!!!

What part of “paying down principle” didn’t she get? Why would I go from wanting to pay down my loan to wanting borrow even more? I guess some people would find 4 months of 6.25% interest too hard to resist.

And getting back to your question, if I did decide to borrow the X amount of dollars available to me, I would certainly be upside down, owing more than I could sell my condo for.

[citydweller]

Based on my experience this morning, I would have to say the answer to your question is “No”.

I got a HELOC with B of A in 2003, when my condo was appraised at about 35% more than it is worth now. I spent part of what was available to me, then locked the rate on that portion that I had borrowed (at 6.5%, when the adjustable rate would have been just 4.25%, but is now around 7.75%). I set up an automatic payment plan where my monthly payments were just deducted from my checking account.

So, today I called their customer service line to tell them that I would like to start making additional payments to pay down the principle. Before she would make the transfer she wanted to know if I was aware that I had X amount of dollars available!!! and for a limited time only, any money I borrowed would only be charged 6.25%!!!! until March of 2008!!!

What part of “paying down principle” didn’t she get? Why would I go from wanting to pay down my loan to wanting borrow even more? I guess some people would find 4 months of 6.25% interest too hard to resist.

And getting back to your question, if I did decide to borrow the X amount of dollars available to me, I would certainly be upside down, owing more than I could sell my condo for.

[nla]

I can’t resist it.

It’s principal not principle. You mentioned it twice, so I don’t think it’s a typographical error.

[nla]

I can’t resist it.

It’s principal not principle. You mentioned it twice, so I don’t think it’s a typographical error.

[nla]

I can’t resist it.

It’s principal not principle. You mentioned it twice, so I don’t think it’s a typographical error.

[nla]

I can’t resist it.

It’s principal not principle. You mentioned it twice, so I don’t think it’s a typographical error.

[nla]

I can’t resist it.

It’s principal not principle. You mentioned it twice, so I don’t think it’s a typographical error.

[djrobsd]

That’s just wrong. By the way, if you use a Mac instead of a PC, it auto spell checks all your posts on the web for you as you’re typing them… One more reason to use a Mac, but wayyyyyyyyyyyyyyyyyy off topic for this site.

[djrobsd]

That’s just wrong. By the way, if you use a Mac instead of a PC, it auto spell checks all your posts on the web for you as you’re typing them… One more reason to use a Mac, but wayyyyyyyyyyyyyyyyyy off topic for this site.

[djrobsd]

That’s just wrong. By the way, if you use a Mac instead of a PC, it auto spell checks all your posts on the web for you as you’re typing them… One more reason to use a Mac, but wayyyyyyyyyyyyyyyyyy off topic for this site.

[djrobsd]

That’s just wrong. By the way, if you use a Mac instead of a PC, it auto spell checks all your posts on the web for you as you’re typing them… One more reason to use a Mac, but wayyyyyyyyyyyyyyyyyy off topic for this site.

[Author]

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