Can Your Lender Cancel Your HELOC?

Category: Academics

Home equity lines of credit (HELOCs) are a popular way for homeowners to access the equity in their homes, but they can come with risks. This article discusses whether a lender can cancel a HELOC and under what circumstances. It explores reasons why a lender may choose to cancel a HELOC, such as changes in the borrower's credit or employment status, and what homeowners can do to prevent this from happening. The article also offers tips for homeowners on how to use a HELOC responsibly and avoid the risk of cancellation. By understanding the potential risks of a HELOC and taking steps to mitigate them, homeowners can access the equity in their homes and avoid financial trouble.