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Updated over 7 years ago, 07/22/2017
HELOC questions in regards to primary residence
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!