A full refinance may be a good idea right now

Posted by Steve Dalton / Category:

Second mortgages are being messed with, you may be better refinancing the entire thing. Take cash out if you want a fall back, but equity lines are getting messy
clipped from activerain.com

Many of us use obtain an equity line of credit to have as an emergency fund.  Why tie up cash if you can write yourself a check when you need it.  Isn't this one of the ways the banks market the equity line?

Yesterday I received a panic call from a past client that had obtained the line of credit in November 2006 when his home appraised for $675,000.  His equity line bank reviewed his file, ran an AVM to determine a current value that was 19% lower.  This dropped the loan to value below what was necessary to qualify for the equity loan so the bank notified them that the line of credit was being cancelled.

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