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1) A lender can reduce (or freeze) your HELOC. 2) Pulling money out of your house during a downturn is dumb. You now have to pay interest on that, and in a few
by reverend_gonzo 9y ago
1) A lender can reduce (or freeze) your HELOC.
2) Pulling money out of your house during a downturn is dumb. You now have to pay interest on that, and in a few years or so, you're going to have a lump sum payment to pay off that loan.
If you just keep pulling money willy-nilly, you're very likely to lose that house.
- mooreds 9y agoAgreed you shouldn't pull 'willy-nilly' but it can be an additional source of 'income' and can help with short term cash flow (which can be crucial if you move from being an employee to a contractor). Like any other tool, be aware of the way it can help or hurt you.