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Is it true that I can get my line of credit cut off with a HELOC?

I want to apply but having second thoughts if this is true by euice876 from Tipton, Tennessee. Jan 19th 2021 Reply

Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,300 contributions

It is true. All lenders that issue any form of revolving credit, whether it's a Credit Card or A HELOC, includes language in their agreements that allow them to reduce available credit, even reducing it to zero. Typically, the triggers are a borrower having a delinquency on the account, or a credit score that falls below a certain level or falling values of homes that secure the HELOC. Depending on what you intend to use he money for, and when and how you will pay it back will determine if it is better to get a HELOPC or to do a cash-out refinance. Discuss your plans with a Licensed Mortgage Loan Originator to bet a better idea on your options. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ At NEXA, we've got you covered. We are licensed in all states except MA and NY and we are pending approval in VA, so give us a call. ~ 480-889-9000.

Jan 20th 2021
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,476 contributions

YES. A home equity line of credit can be lowered or cancelled at anytime for your ability to take more money. It happened a LOT back in 2007 and 2008 when the real estate markets crashed, and has also been happening a little bit since COVID.

Jan 22nd 2021
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