A. While homeowners generally need to stop thinking about their home as a piggy bank, those who have substantial equity and legitimate needs can take advantage of the current low rates to access some cash.  Review your total financial picture and eliminate credit card (rates are going up) and installment debt with a cash-out refinance to take advantage of current low rates.  Currently, Fannie Mae and Freddie Mac are allowing cash-outs up to a 90% LTV.   However, the premiums charged if the LTV is over 70% can get quite pricey.

Some equity line lenders are freezing existing credit lines.  The most common reasons given are: lowered home values, excessive lender risk and past late payments.   The issue of late payments can be invoked if you have missed your payment date, but are still within your grace period.

The pendulum has swung to a market place requiring excellent credit, verifiable income, down payments, solid reserves and secure home values.  In more volatile times like this, please rely on your real estate and mortgage professionals at Choice Finance and Choice Real Estate to help guide you through your options.
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Alex Echeandia, Choice Finance