Home Equity Loans and Home Equity Lines of Credit - Results of Pandemic
If you are thinking about getting a Home Equity Loan or a HELOC in the near future - you might want to check out this article. With the escalating price of real estate, most specifically, homes, lenders are starting to protect themselves from a dive in the marketplace values.
This is especially important if you still have a primary mortgage on the home. Not as important if you don't have a primary mortgage but you still have to deal with many financial institutions that just aren't offering this type of Home Equity at this time. So just a heads up for anybody planning to gain access to this type of equity in your home.
Just as many individuals and families are looking to tighten their budgets and minimize their risks, banks and other lending institutions are doing the same. For individuals, minimizing risk might mean canceling a gym membership or opening a new credit card without an annual fee, but for banks, it includes taking steps like tightening up requirements for new loans or pausing HELOC applications.
more at the link describing how some large lenders are currently handling this ~