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Archie
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Posted: Thu Apr 17, 2008 11:50 pm Post subject: |
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| Does opening a Heloc with high limit affect FICO score? |
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larry

Joined: 27 Jun 2007
Posts: 3328
474.49 Dollars($)
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Posted: Fri Apr 18, 2008 12:29 am Post subject: |
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Hi Archie,
Welcome to the forum.
I don't think that a opening a high limit HELOC affect your score. Instead if you can make the payments on time regularly then it can help you to increase your credit score.
Feel free to ask if you have any further questions.
Best of luck,
Larry |
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Samantha
 Community Mentor

Joined: 16 Sep 2005
Posts: 1602 Location: MASSACHUSETTS
149.70 Dollars($)
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Posted: Sat Apr 19, 2008 4:31 am Post subject: RE: does high heloc limit affect credit score? |
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Heloc being a revolving debt, when the credit bureaus calculate your credit score, they'll consider the ratio between your outstanding debt and available credit, not how much of credit is available to you.
If you can maintain a debt to available credit ratio of 25% or even lower, your score would remain unaffected. Beyond this ratio, there may be a negative influence on your score.
Hope this helps...
God bless you.
Samantha _________________ Know how to compare lenders with mortgage booklet |
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tameca
 Guest
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Posted: Fri Jan 02, 2009 1:05 pm Post subject: Should I second morgage my home? |
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| I hate my current job but feel stuck because of my mortgage.MY husband and I have started the ground floor work of 3 apartments at the back of our home, but we need about $50,000 to complete the work. Sould we mortgage our home?. I just do not know what to do. We are thinking about finishing the apartments and selling the entire building, which when completed should sell for about $300,000,but we are afraid if it will be sold, how quickly and if it will be sold at our price. If sold we can pay of our first mortgage and pay of the loan. What should we do? |
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jameshogg

Joined: 20 Dec 2005
Posts: 4291 Location: nevada
509.34 Dollars($)
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R
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Posted: Sun Feb 01, 2009 12:08 pm Post subject: Change secure line of credit to unsecure revolving credit |
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Does any one know how this scenario works?
2nd lender changes the secure heloc to unsecure revolving credit card and keep it on your credit at the time of short sell? Then the borrower has to carry it like a credit card and keep making the monthly payments.
What would be the effect on credit score and obtaining future loans?
Thanks |
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Caron
 Moderator
Joined: 19 Jul 2005
Posts: 1562 Location: florida
266.58 Dollars($)
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Posted: Fri Feb 06, 2009 6:03 am Post subject: |
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Hi R,
There's nothing to worry about it. Basically, the mortgage balance couldn't be recovered through the sale. This is why the lender wants you to pay the rest in the form of an unsecured loan. The loan becomes unsecured because the collateral has been lost due to short sale.
The short sale will reduce your credit score by 80-100 points. But the second mortgage changing to an unsecured heloc won't affect your credit in any way. However, you need to keep making on-time payments in order to pay off the unsecured loan.
Good luck _________________ Mortgage Shopping made easy with booklet |
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Klas
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Posted: Tue Jun 16, 2009 6:16 pm Post subject: Line of credit after short sale |
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I live in California with my wife. In 2005 she became ill and could not work, so by the summer of 2007 we defaulted on our house. The bank agreed on short sale and the house was sold January 2008. When we bought the property the bank set up the finance with two loans, the mortgage loan (80%) and a line of credit (10%). The last 10% we put down. The property was sold for $215 000 less that we paid for it. We received a 1099-C this year for the mortgage loan but nothing for line of credit.
My question is now: There is a company that bought the HELOC debt from the bank who is calling me and they want me to pay the loan back. We don’t have the finance now ($65 000), and I don’t know if we ever will. So what can I do? |
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eric1
 Community Experts

Joined: 04 Jan 2009
Posts: 1172
175.80 Dollars($)
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Guest-j123
 Guest
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Posted: Fri Nov 20, 2009 2:09 am Post subject: Refinance & HELOC |
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Can the outstanding balance of a HELOC be included in a refinance of a 1st and 2nd mortgage to a single loan? Is this scenario even allowed?  |
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savior70

Joined: 25 Mar 2009
Posts: 1422 Location: Florida
168.75 Dollars($)
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Posted: Sat Nov 21, 2009 6:32 am Post subject: |
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Hi Guest,
You can refinance both the first mortgage and the home equity loan into a single loan. But there has to be enough equity for you to be able to do so. In fact if there's enough equity in the property and you can refinance both the loans together at a lower interest rate, you can save a lot of money in interest. |
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