Real Estate Secured HELOC

[TomRebstock]

TD sent me THE letter about changing my 2.5 year old HELOC at Prime to HELOC at prime + 1%

This won`t hurt me my cash flow covers.

Are any banks taking customers at prime plus 0.2% that anybody knows of?

Credit score is fine.

 

[luckyluciano]

I still have Prime. Are the allowed to change the agreement just like that?

 

[Thomas Beyer]

QUOTE (luckyluciano @ Sep 15 2009, 03:14 PM) Are they allowed to change the agreement just like that?
yes .. a key difference to a mortgage !

They can also pull it at any time !

 

[kboughen]

QUOTE (luckyluciano @ Sep 15 2009, 05:14 PM) I still have Prime. Are the allowed to change the agreement just like that?
A HELOC that is in second position (meaning you also have a first mortgage on the property) is at most risk of being increased by the Lender as they are generally setup with the ability to increase at the Lenders discretion (even though this may not have been made clear to you).


With a HELOC that is in first position (there are no other mortgages on the property), there is a better chance that it has been setup in a fixed relation to Prime (Prime + 0.00), if this is the case, your relation to Prime does not change throughout the Term.


If the HELOC is part of a re-advancing Mortgage Product such as a Matrix mortgage, there is a good chance that it has been setup in a fixed relation to Prime (Prime + 0.00), if this is the case, your relation to Prime does not change throughout the Term.


The above set ups are Lender specific. Your Mortgage Broker can confirm the details during the product evaluation process.