DH and I took out a HELOC 3 years ago to finance a home remodel. The rate is still attractive - 3.49% - so we are still carrying a balance on it. In addition, we have credit capacity on it that we would like to keep as an "emergency cushion" in case the market crashes and we don't want to sell assets to fund our cash flow needs.
We recently RE'd and I was wondering if we are obligated to disclose our retirement to our mortgage bank and if so, would they be likely to "freeze" or call our debt? We have excellent credit (scores over 800) and our financial assets are about 10x our total HELOC capacity and 45x our HELOC outstanding balance. It seems the bank would have little incentive to reduce or eliminate our HELOC as long as we are current on payments and maintain our credit score, but I am wondering if the bank would likely take action to reduce their risk if they knew we no longer have W-2 incomes?
We recently RE'd and I was wondering if we are obligated to disclose our retirement to our mortgage bank and if so, would they be likely to "freeze" or call our debt? We have excellent credit (scores over 800) and our financial assets are about 10x our total HELOC capacity and 45x our HELOC outstanding balance. It seems the bank would have little incentive to reduce or eliminate our HELOC as long as we are current on payments and maintain our credit score, but I am wondering if the bank would likely take action to reduce their risk if they knew we no longer have W-2 incomes?