Banks Cancelling HELOCs

I've been reading that banks have been cancelling HELOCs. I have a substantial amount that I've never used and if it was cancelled it might become a hassle to reinstate it. So, I was thinking of taking the full amount and putting it somewhere with the intent to just trade off on the interest due. That is, right now it would be 3.5%.

Any suggestions on where to get 4%. I have some funds in ATOIX but the NAV can fluctuate a little and I'm not sure about that.

Thanks.

 

BUMP

 

This sounds like a bad idea.

 

they can't cancel it unless there was something fraudulent you did. otherwise all they can do is freeze it (ie, not allow further withdrawals).

i suggest you use the heloc now while you can. they won't tell you until after the fact that they're freezing it. otherwise it defeats the purpose of freezing it if the borrower knows it's about to happen.

 

It's much easier to have the money and owe the lender than try and borrow it when you need it.

 

You gamble with your house collateral. The rate of interest you pay now for the HELOC is fixed or variable? Most HELOC interest rates are changed with time to the index of prime rate. So if you think the chance of prime rate go lower is good, then you will be ok, but my opinion is you will get caught with a higher rate over time, and the money you borrow with HELOC will not outperform in interest of the (new and changed) HELOC interest that is correlated to the prime rate.
What is your draw time of the HELOC loan?

 

http://www.wsjprimerate.us/wsjprimerate/blog.htm

Here is where to look to see possibility of prime rate change in the future. Right now it is not changed with the fed rate staying the same. How will you know what is in the future?