Originally Posted by Ken11
I own outright.
Value is about 5 yrs living expenses.
Id look for an LOC to cover 3 years worth of expenses.
The possibility of and LOC being canceled when the equity is free and clear is something I may need to understand better.
Were LOC's canceled under such circumstances?
All equity should work pretty well.
When the Bank Freezes Your Line of Credit - WSJ.com
Across the U.S., sellers with good credit who have never been late on a mortgage payment are getting their home equity lines of credit (HELOCs) frozen or downgraded. Major lenders like Bank of America, Citibank, Countrywide Financial Corp., Washington Mutual Bank and USAA have announced that they're cutting back HELOCs in areas where home prices have taken a hit.
But judging by a recent post about HELOCs on WSJ.com's Developments blog
and one reader's comments to that blog, lines of credit aren't just being frozen in places where prices have declined. Take Manhattan, where median condo prices jumped 13.2% to $945,276 in the first quarter of this year over the same period a year earlier, according to real estate firm Prudential Douglas Elliman. In response to that blog post, one New York couple wrote in and said that despite their "excellent credit" and a $300,000 household income, their credit line was slashed as the result of a bank appraisal that came in at half the market value for their $1 million apartment. They had to pay for a new appraisal to get their line of credit reinstated."