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Rates Way Up; Almost 1% higher than Nov.; Equity Line = Seasoned Funds

Troubles still abound in Europe, however, and all is not rosy here in the U.S. Hence, we could see rates come back somewhat if significant negative news surfaces.

Note to borrowers locking in rates now: If rates come back, you can always refinance in a few months (usually at “no cost”). Many borrowers seem to forget this.

Now that homes have appreciated so much, many borrowers can tap into their extra equity with an Equity Line. Equity lines are considered “Seasoned Funds” too; they can be used for down payments, closing costs and reserves.

We have a borrower who is obtaining an equity line against her primary residence to be used for the purchase of an investment property. The equity line will close only a few days before her investment purchase and it will still be considered fully “seasoned.”

Jay Voorhees
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646