It used to be that getting a home equity line of credit was no sweat..as long as you had some equity in your home, a lender would allow you to borrow against it as you needed. However with the recent decline in the market, some lenders now view home equity lines as too risky to partake in, because of falling property values.
Traditionally, home equity lines of credit carry higher rate, and sometimes even an adjustable rate that is tied to the prime rate. For this reason, many homeowners would do better with a traditional refinance. It all depends on your situation, some borrowers who don't need a huge lump sum may do better with a home equity line because you can draw from it at your leisure...as opposed to pulling out a large sum that you will be obligated to pay back.
Home Equity lines will still be around for the most part, but as the market decreases there will be more and more lenders who are pulling away from them.
Date: 2008-05-16 17:06:03