Guide to 'Home Equity Loans'

A Home Equity Line of Credit Freeze or Credit Line Reduction  can happen to anyone. Home price declines or a change in your financial situation can trigger a credit line freeze or reduction. This brief article compiled from a Federal Reserve document gives you some tips for dealing with a HELOC reduction or freeze. The main issue is don’t panic. The lender is required to send you a notice when your Home Equity Line of Credit is frozen or reduced. Read the notice carefully and contact the lender immediately with your questions or concerns.

Home Equity Lines of Credit  can have risky features that could make it difficult for you to repay your balance. Remember that failure to repay your home equity credit line could cause you to lose your home. Shop around various lenders and find the best line of credit terms that meet your borrowing needs without unduly risking your home. Ask your lender about other loan products, such as a traditional home equity loan.