Portage, Valparaiso and NW Indiana Mortgage Company

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.