Bonanza36

Should You Tap Your Heloc Before It's Frozen?

I am in the mortgage capital markets. I don't need the money, but tapped 100% of the HELOC anyways.

From my perspective, the credit crisis is getting worse, not better. When auction rate securities free up, and the financials can raise capital at something less that double digit yields, the I may pay down the Heloc.

For the time being, having access to the funds is worth 5% and can easily match that cost of funds in today's market with energy trusts.