Access to a HELOC is NOT guaranteed. What about a HECM?
Last week the average $30,000 HELOC or home equity line of credit loan was 7.32%. Keep in mind those were the averages before the Federal Reserve hiked its short-term rates another 75 basis points in the first week of this month. Vikram Gupta, executive vice president and head of home equity at PNC Bank told Time, “The home equity product is still great to have. So, if you can qualify for one now, I recommend doing it because things are only going to get worse. You might not be able to qualify for it six months from now”. What Mr. Gupta fails to mention is that you may qualify for a HELOC today, only to have your credit line frozen or reduced at the lender’s discretion in the future.
