Has anyone had any issues with a lender freezing their HELOC? This is an extremely scary thought for me since most of my reserves are parked in Lines of Credit. I’m now starting to contemplate pulling the funds out and sticking them in some other vehicle, all the while paying for the loss in interest from the lines, just to maintain liquidity.
Lenders tend to do this when their collateral decreases.
Stoney,
With the prime rate set to drop again here shortly pulling money out of that HELOC may not cost you as much as you think. Especially when you consider the tax benefits. As long as you invest wisely you should have no problem breaking even or even profiting.