In the midst of all the HELOC freeze turmoil, most major lenders continue to advertise. Just today I received an email advertising home equity lines of credit from Wells Fargo. They say:
“Rates are at their lowest levels in over 3 Years — there’s never been a better time to apply.”
That may be true for borrowers who have excellent credit, hold significant equity, and live in areas with stable home values. But, I’m afraid those who don’t meet these requirements won’t get the lowest rates in three years. They’ll be lucky if they can find a HELOC lender offering a loan with any rate.
For those who do meet the new, more stringent guidelines, there are some benefits to taking out a HELOC now. In addition to low rates, Wells Fargo is offering loans with no bank closing fees and a quarter point rate discount for customers making automatic payments.
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