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Updated over 7 years ago, 07/22/2017

User Stats

7
Posts
3
Votes
Mary Smith
  • Atlanta, GA
3
Votes |
7
Posts

HELOC questions in regards to primary residence

Mary Smith
  • Atlanta, GA
Posted

Hi, here's my scenario:

I bought a house in cash for 42k - then took out a 34k HELOC on it. It is/was my primary residence.

Now I'm under contract to buy another home - that I will be moving into - so my primary residence is changing (I will be taking out a fixed rate 20 year primary residence mortgage for that property) with another lender. 

Will this effect my ability to keep the HELOC open? Currently it has a zero balance. If I use the HELOC and the lender finds out it's not my primary residence anymore will there be ramifications?

Could I even potentially ask for a larger line of credit once my initial property purchase has seasoned? 

This seems like a question for my lender - but I was wondering if people knew in general HELOC terms.

Thanks!

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