HELOCs are “Raging Back”

A recent report on HousingWire says a combination of rising home values and the fact that nearly two-thirds of borrowers with at least some home equity have mortgage rates below 4% (with no benefit from a refinance) is helping to propel a resurgent market for home-equity lines of credit (aka HELOCs). Citing data from the The Federal Reserve Bank of New York’s Q2 2022 Household Debt and Credit Report they say limits on HELOCs jumped by $18 billion this year – which is the first substantial increase in HELOC limits since 2011. A home-equity line of credit (HELOC) allows a homeowner to tap equity in their home without incurring a much higher first-lien mortgage through a cash-out refinancing. Continue reading HERE...