Home
Forums
New Posts
Illini Basketball
Illini Football
Sports Talk
Log in
Register
What's new
Menu
Log in
Register
Install the app
Install
Forums
General
Chat
Finances
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="Ransom Stoddard" data-source="post: 1311899" data-attributes="member: 10336"><p>That would shock the heck out of me. Typically equity lines are at a higher rate than a standard mortgage because they're in a higher risk position. If the borrower defaults the holder on the first is the first to get paid, and if the LTV is upside down the holder on the equity line is left holding the proverbial bag.</p><p></p><p>My guess is they were offering you the HELOC <em>in addition</em> to your standard in order to maximize your debt (yes, they do that, all day long). It wouldn't make sense for the lender to pay off your existing first with a HELOC unless it was already under 50% or so of your home value.</p></blockquote><p></p>
[QUOTE="Ransom Stoddard, post: 1311899, member: 10336"] That would shock the heck out of me. Typically equity lines are at a higher rate than a standard mortgage because they're in a higher risk position. If the borrower defaults the holder on the first is the first to get paid, and if the LTV is upside down the holder on the equity line is left holding the proverbial bag. My guess is they were offering you the HELOC [I]in addition[/I] to your standard in order to maximize your debt (yes, they do that, all day long). It wouldn't make sense for the lender to pay off your existing first with a HELOC unless it was already under 50% or so of your home value. [/QUOTE]
Verification
Post reply
Forums
General
Chat
Finances
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.
Accept
Learn more…