Home Equity Lines and Personal Lines of Credit

As discussed in my April post on Zillow “Don’t Get Burned by the HELOC Freeze” Banks and Lenders began Freezing Home Equity Lines of Credit (HELOC). The wrath did not focus on poor credit score or delinquent borrowers, it was an across the board freeze.  With the current financial crisis we are undergoing the Banks have begun to freeze Personal Lines of Credit (LOC).  This will affect everyone, just because you may have a 800 credit score does not mean your LOC will be fine or you are immune from this crisis.   If you think you might need to access your LOC or HELOC in the next few months (Christmas is less than 3 months away) you may want to borrow from your Lines. An individual can always find a credit union or internet bank offering an above average non CD interest savings account to place the idle funds in to help offset the monthly payment.  Better Save than Sorry in this Market/Economy. 

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