Hi All,
It seems like the economy might be heading into a recession at this point. I have an available line of credit on my home that has a variable interest rate. With market downturns, there is always huge opportunity to grow wealth. I'm currently evaluating the risk/benefits of cashing out my HELOC to have my money in cash and just paying interest so that I can jump on opportunities that arise within the next few months to 2 years.
I'm thinking about cashing out because if the market were to do a downturn, the banks can choose to halt HELOCS like they did during the beginning of the COVID pandemic. Even if HELCOS aren't holted, a market downturn would effect the equity in the home therefore causing HELOC to lessen in value if reevaluated by the bank.
Has anyone else considered this option?
It seems like the economy might be heading into a recession at this point. I have an available line of credit on my home that has a variable interest rate. With market downturns, there is always huge opportunity to grow wealth. I'm currently evaluating the risk/benefits of cashing out my HELOC to have my money in cash and just paying interest so that I can jump on opportunities that arise within the next few months to 2 years.
I'm thinking about cashing out because if the market were to do a downturn, the banks can choose to halt HELOCS like they did during the beginning of the COVID pandemic. Even if HELCOS aren't holted, a market downturn would effect the equity in the home therefore causing HELOC to lessen in value if reevaluated by the bank.
Has anyone else considered this option?
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