Showing results for 
Search instead for 
Did you mean: 

HELOC refinance

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Valued Member

HELOC refinance

My wife and I are looking to increase the HELOC we have on our home to give us a little wiggle room for an addition we are doing.  The current HELOC is at 75% ltv when our home was appraised in January.  I know, we should have just gone to 80% right then and there.  Now that we do want to go to 80% and it's been more than 3 months the bank wants to re-appraise.  My wife's big concern is that our appraised value will drop, our ltv ratio will go above 80% and the bank will reduce our current HELOC amount.  Does this type of thing happen?  We've only drawn on about 60% of the available HELOC so there's room for the bank to cut it on us.  It's a local bank not a national if that matters.  Thanks for anyone's thoughts on this.

Message 1 of 3
Community Leader
Super Contributor

Re: HELOC refinance

It could very well happen, HELOC limits can be reduced pretty much at any time... and for years many homeowners in states with sinking home values have seen their HELOC limits get slashed.  You'd have to ask your loan officer to find some inside information to be sure.

Helping people with Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
In Irvine, CA and lending in all 50 states

Information that is needed to determine if you qualify for a mortgage

Message 2 of 3
Valued Contributor

Re: HELOC refinance

I certainly could happen.


If you have two different appraisers do the same home (even at the same time), you will very likely get two different numbers. Appraising is a combination of art and science. It's much more than just doing the math.


Property values are still going down in some areas. I would be tempted to leave well enough alone.

Message 3 of 3
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.