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.

[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.

[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.

[citydweller]

Thanks nla, you’re right it wasn’t just a typo. I debated between the two spellings and chose the wrong one…dang!

[kev374]

The malls are packed and people seem to be on a buying binge even now. If not the HELOCs I am sure the credit cards are being maxed out. Or perhaps they are spending every last penny they make.

But in any case, running up ridiculous amounts of debt and then crying for a handout seems to be the American way. People are just spoiled these days, it’s the “I deserve to have it now” attitude!

[Coronita]

The malls are packed and people seem to be on a buying binge even now. If not the HELOCs I am sure the credit cards are being maxed out. Or perhaps they are spending every last penny they make.

But in any case, running up ridiculous amounts of debt and then crying for a handout seems to be the American way. People are just spoiled these days, it's the "I deserve to have it now" attitude!

 

You know, I've always been curious. How much does the average consumer spend on the winter holidays (to be politically correct)?

[Fearful]

I met socially with a nice lady who is in the clothing business. She says that early indications are this is a really bad retail season. The demand is just not there.

[Fearful]

I met socially with a nice lady who is in the clothing business. She says that early indications are this is a really bad retail season. The demand is just not there.

[Fearful]

I met socially with a nice lady who is in the clothing business. She says that early indications are this is a really bad retail season. The demand is just not there.

[Fearful]

I met socially with a nice lady who is in the clothing business. She says that early indications are this is a really bad retail season. The demand is just not there.

[Fearful]

I met socially with a nice lady who is in the clothing business. She says that early indications are this is a really bad retail season. The demand is just not there.

[Coronita]

The malls are packed and people seem to be on a buying binge even now. If not the HELOCs I am sure the credit cards are being maxed out. Or perhaps they are spending every last penny they make.

But in any case, running up ridiculous amounts of debt and then crying for a handout seems to be the American way. People are just spoiled these days, it's the "I deserve to have it now" attitude!

 

You know, I've always been curious. How much does the average consumer spend on the winter holidays (to be politically correct)?

[Coronita]

The malls are packed and people seem to be on a buying binge even now. If not the HELOCs I am sure the credit cards are being maxed out. Or perhaps they are spending every last penny they make.

But in any case, running up ridiculous amounts of debt and then crying for a handout seems to be the American way. People are just spoiled these days, it's the "I deserve to have it now" attitude!

 

You know, I've always been curious. How much does the average consumer spend on the winter holidays (to be politically correct)?

[Coronita]

The malls are packed and people seem to be on a buying binge even now. If not the HELOCs I am sure the credit cards are being maxed out. Or perhaps they are spending every last penny they make.

But in any case, running up ridiculous amounts of debt and then crying for a handout seems to be the American way. People are just spoiled these days, it's the "I deserve to have it now" attitude!

 

You know, I've always been curious. How much does the average consumer spend on the winter holidays (to be politically correct)?

[Coronita]

The malls are packed and people seem to be on a buying binge even now. If not the HELOCs I am sure the credit cards are being maxed out. Or perhaps they are spending every last penny they make.

But in any case, running up ridiculous amounts of debt and then crying for a handout seems to be the American way. People are just spoiled these days, it's the "I deserve to have it now" attitude!

 

You know, I've always been curious. How much does the average consumer spend on the winter holidays (to be politically correct)?

[kev374]

The malls are packed and people seem to be on a buying binge even now. If not the HELOCs I am sure the credit cards are being maxed out. Or perhaps they are spending every last penny they make.

But in any case, running up ridiculous amounts of debt and then crying for a handout seems to be the American way. People are just spoiled these days, it’s the “I deserve to have it now” attitude!

[kev374]

The malls are packed and people seem to be on a buying binge even now. If not the HELOCs I am sure the credit cards are being maxed out. Or perhaps they are spending every last penny they make.

But in any case, running up ridiculous amounts of debt and then crying for a handout seems to be the American way. People are just spoiled these days, it’s the “I deserve to have it now” attitude!

[kev374]

The malls are packed and people seem to be on a buying binge even now. If not the HELOCs I am sure the credit cards are being maxed out. Or perhaps they are spending every last penny they make.

But in any case, running up ridiculous amounts of debt and then crying for a handout seems to be the American way. People are just spoiled these days, it’s the “I deserve to have it now” attitude!

[kev374]

The malls are packed and people seem to be on a buying binge even now. If not the HELOCs I am sure the credit cards are being maxed out. Or perhaps they are spending every last penny they make.

But in any case, running up ridiculous amounts of debt and then crying for a handout seems to be the American way. People are just spoiled these days, it’s the “I deserve to have it now” attitude!

[citydweller]

Thanks nla, you’re right it wasn’t just a typo. I debated between the two spellings and chose the wrong one…dang!

[citydweller]

Thanks nla, you’re right it wasn’t just a typo. I debated between the two spellings and chose the wrong one…dang!

[citydweller]

Thanks nla, you’re right it wasn’t just a typo. I debated between the two spellings and chose the wrong one…dang!

[citydweller]

Thanks nla, you’re right it wasn’t just a typo. I debated between the two spellings and chose the wrong one…dang!

[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.

[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.

[Coronita]

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?

 

 

You don't have to worry about this. I'm sure the average american consumer will find new and more creative ways to spend money that they don't have, or at least re-leverage existing means of spending money they don't have. Afterall, why live in poverty when you can live in debt? No HELOC to tap, no problem max out a few more CC. CC maxed out, borrow against the 401k. Apply for more CC's.

 

 

What you need to worry about is what the retailers are doing this year. Actually, I think they are anticipating weaker spending. Anyone else notice that Black friday events are starting earlier this year? Also, a lot of high end retailers are giving unusual discounts. For example, Gucci is offering 10% discounts of purchases (never done before). Of course, spending $1000-$3000 on a purse is an interesting concept it itself.

 

 

[Coronita]

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?

 

 

You don't have to worry about this. I'm sure the average american consumer will find new and more creative ways to spend money that they don't have, or at least re-leverage existing means of spending money they don't have. Afterall, why live in poverty when you can live in debt? No HELOC to tap, no problem max out a few more CC. CC maxed out, borrow against the 401k. Apply for more CC's.

 

 

What you need to worry about is what the retailers are doing this year. Actually, I think they are anticipating weaker spending. Anyone else notice that Black friday events are starting earlier this year? Also, a lot of high end retailers are giving unusual discounts. For example, Gucci is offering 10% discounts of purchases (never done before). Of course, spending $1000-$3000 on a purse is an interesting concept it itself.

 

 

[Coronita]

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?

 

 

You don't have to worry about this. I'm sure the average american consumer will find new and more creative ways to spend money that they don't have, or at least re-leverage existing means of spending money they don't have. Afterall, why live in poverty when you can live in debt? No HELOC to tap, no problem max out a few more CC. CC maxed out, borrow against the 401k. Apply for more CC's.

 

 

What you need to worry about is what the retailers are doing this year. Actually, I think they are anticipating weaker spending. Anyone else notice that Black friday events are starting earlier this year? Also, a lot of high end retailers are giving unusual discounts. For example, Gucci is offering 10% discounts of purchases (never done before). Of course, spending $1000-$3000 on a purse is an interesting concept it itself.

 

 

[Coronita]

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?

 

 

You don't have to worry about this. I'm sure the average american consumer will find new and more creative ways to spend money that they don't have, or at least re-leverage existing means of spending money they don't have. Afterall, why live in poverty when you can live in debt? No HELOC to tap, no problem max out a few more CC. CC maxed out, borrow against the 401k. Apply for more CC's.

 

 

What you need to worry about is what the retailers are doing this year. Actually, I think they are anticipating weaker spending. Anyone else notice that Black friday events are starting earlier this year? Also, a lot of high end retailers are giving unusual discounts. For example, Gucci is offering 10% discounts of purchases (never done before). Of course, spending $1000-$3000 on a purse is an interesting concept it itself.

 

 

[Coronita]

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?

 

 

You don't have to worry about this. I'm sure the average american consumer will find new and more creative ways to spend money that they don't have, or at least re-leverage existing means of spending money they don't have. Afterall, why live in poverty when you can live in debt? No HELOC to tap, no problem max out a few more CC. CC maxed out, borrow against the 401k. Apply for more CC's.

 

 

What you need to worry about is what the retailers are doing this year. Actually, I think they are anticipating weaker spending. Anyone else notice that Black friday events are starting earlier this year? Also, a lot of high end retailers are giving unusual discounts. For example, Gucci is offering 10% discounts of purchases (never done before). Of course, spending $1000-$3000 on a purse is an interesting concept it itself.

 

 

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