HELOCs are now “raging back”

By: Lexi Malen

As the 30 year fixed rate 1st mortgages have gone from the high 2’s to the mid 5’s in 2022 and along with our incredible home appreciation over the last few years home equity lines of credit (HELOC) are becoming predominant in the market.  For anyone that wants to tap the equity appreciation in their home with out disrupting the great on the first HELOC’s are the way to go.  If managed responsibly everyone should have a HELOC as it provides a source of funds that can be accessed quickly and at much better interest rates then 90%+ of credit cards.  Gem Home Loans can help you with a review of a HELOC opportunity.


Article: HELOCs Are Raging Back

Source: HousingWire.com

Article Highlights

  • A combination of fast-rising home values and the fact that nearly two-thirds of borrowers with at least some home equity have mortgage rates below 4% — and would not benefit from refinancing — is helping to propel a resurgent market for home-equity lines of credit (HELOCs).
  • The Federal Reserve Bank of New York’s second-quarter 2022 Household Debt and Credit Report shows that limits on HELOCs jumped by $18 billion in the second quarter of this year, “the first substantial increase in HELOC limits since 2011″.
  • HELOCs allow homeowners to tap the equity in their home without incurring a much higher first-lien mortgage via a cash-out refinancing.


Read Full Article on Housingwire.com



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