HELOC

[Charles Stubblebine]

If you open up a HELOC from the equity on a SFH and then decide to sell the SFH a few years later what would be the monetary consequences if any? Does the HELOC prevent you from selling if you have a HELOC open on the SFH?

Thank you, 

Charlie 

[Account Closed]

Charlie, The HELOC is a second mortgage, a lien in second place on your property. It won't prevent you from selling, but you will have to settle and close the HELOC with the lender prior to being able to transfer your title to the new owner.

Monetarily, you'll owe principle plus any accrued interest. Some lenders MAY charge some sort of termination fee if you didn't hold the HELOC for a number of years, that will depend on the overall terms you settled on with the lender.

Does that help?