Comments on: Equity Line of Credit: Seek Other Financial Shelter

By: Queercents » Blog Archive » FHA Mortgages May Be the Way to Go

Queercents » Blog Archive » FHA Mortgages May Be the Way to Go — Thu, 21 May 2009 15:58:49 +0000

[...] purse strings. Down payment requirements are bigger, credit and income is severely scrutinized, and home equity lines of credit and second mortgages are being curtailed. Meanwhile, the FHA is assuming greater responsibility for [...]

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By: moom

moom — Tue, 16 Dec 2008 06:37:45 +0000

The Fed has a plan to get Fannie Mae to lend at that rate to try to stabilize the housing market. But I don't know the current state of progress on that.

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By: Nina

Nina — Fri, 05 Dec 2008 13:28:24 +0000

Serena: In most places, home values have decreased which is why the lenders are suspending or reducing the amount of the lines. Again though, it depends on how much equity you still have in the property. I hadn't heard the 4.5 number, but that's a really good rate for a 30-year fixed. You make an excellent point... the requirements to access credit are much more stringent than two years ago - gone are the days of sub-prime borrowers... which isn't necessarily a bad thing.

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By: Serena

Serena — Thu, 04 Dec 2008 15:24:55 +0000

Nina, I have a question. Hypothetically assuming that your LOC was still available, what would happen to the LOC in the instance of your home value depreciating? Totally unrelated, but I heard a story on NPR this morning on the way to the airport about the possibility of home interest rates being lowered to 4.5% by the end of the year to boost home sales. But if people don't have access to credit, how is this move really going to affect the housing market?

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