 Quote:
Originally Posted by rayvt
A HELOC is not an emergency fund. Every HELOC I've had (two) had a clause right there in it that said the bank could decline to advance you any money whenever they wanted to.Better not count on taking a draw and depositing the money into another account at the same bank, either. There was also a clause giving them the right to offset---take money from another of your accounts and apply as a payment to the HELOC.
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Good point - - I took out a HELOC for an emergency fund a couple of years before I finished paying off my house, and found (much to my dismay) that the fine print gives them all kinds of outs, especially if your financial situation changes (as in an emergency, I suppose). If I used it in such a situation, I would know that if they found out what was going on I'd be in trouble. I haven't ever used it, and I should probably cancel it now since I don't need it.
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