Posts

2nd Mortgage vs. HELOC (Home Equity Line); Which Is Better?

Yesterday’s blog, 5 Reasons to Get a HELOC, was inspired by a question from my nephew – as he is a perfect candidate for a HELOC. He is in his early thirties – and he has a family to support, about a half-million in equity, a very low rate first mortgage, an excellent job, and […]Read More

Bridge Loans Explained (Buying Before Selling Current House)

We often have buyers come to us who want to buy a new residence before selling their current residence. If they do not have enough cash for a down payment, we often just recommend that they get a home equity line of credit (HELOC) against their current home. HELOCs are awesome because they are usually […]Read More

Beware Of Fake Vendors Pretending To Be Us; Paying Off HELOC = Cash Out

BEWARE OF VENDORS IMPERSONATING LENDERS This is a quick reminder that some vendors, particularly sellers of “mortgage protection insurance” or other insurance products, often reach out to new homebuyers shortly after close. These vendors often see the name of the funding mortgage bank on county records and then reach out to homebuyers, pretending to be […]Read More

HELOCs For Bridge Loans; Online Lender Horror Stories

MORE ONLINE LENDING HORROR STORIES In response to my blog about Quicken’s pending IPO on Friday, I received several reminders of online lending/call-center horror stories. With every instance, the call-center loan-officer did a perfunctory “pre-qualification” without doing a full pre-approval, and transactions blew up as a result. The call-center loan officers are trained largely for […]Read More

HELOCs Fading; Jumbo Rates Way Higher; FAQs

Two of the nation’s largest banks announced that they will no longer originate new Home Equity Lines of Credit (HELOCs). This is of course in response to the COVID-19 crisis. We still offer HELOCs but only to 90% Combined Loan to Value (95% CLTV no longer exists) and only for purchase money financing. In Texas, […]Read More

Elephant In Room: Housing Prices; HELOCs Too

Chase stopped accepting applications for home equity lines of credit (HELOCs). I mentioned this previously, but in 2008, HELOC lenders not only stopped taking applications but they also froze existing HELOCs. Given the trends, HELOC borrowers in need of cash might consider drawing on their HELOCs now before they are frozen (as I mentioned in a […]Read More

Fat Down Payment – Equity Line After Close To Reclaim Liquidity

We had two borrowers this week have to drain every penny of their substantial stashes of liquid funds in order to make their offers more competitive. Large down payments of course allow us to push files through underwriting faster, and they often make appraised value (and appraisals) a non-issue. We reminded both borrowers they would […]Read More