Looking to apply for home equity lines of credit? Some larger banks have a pause on them
For homeowners looking to take out new applications for home equity lines of credit, they may be out of luck with some of the larger banks.
A few of the major banks in the United States still have a pause on accepting new applications for home equity lines of credit, known as HELOC, amid what they describe as economic uncertainty.
A HELOC is a line of credit that allows homeowners to borrow against the value of their homes, which can be used for large expenses ranging from home repairs or improvements.
Home equity lines of credit are still popular among homeowners in light of rising values and dwindling inventory in the market.
With mortgage rates high, and inventory levels still low, it’s a viable option for homeowners to upgrade their homes without having to move into a new one, and possibly have to do the same, says Melissa Hoff, of The Hoff Group at Compass.
” A lot of people are still going for HELOCs because their property values have gone up and they have money sitting there,” Hoff said. “In some cases, they are taking money out of their homes to do repairs rather than move somewhere else in today’s market.”