I think it honestly depends upon where you are, geographically. These tales of pulled HELOC and reduced credit lines are not inaccurate, they’re just coming from areas of the former real estate bubble. We never experienced that here in NC, well, maybe on the coast and around recreational lakes, but the vast majority of homeowners haven’t been hugely impacted. Not yet, anyway, if ever. Prices have softened and begun to fall back, but houses in my neighborhood are for sale or have sold for a price that is similar to last year. They’re just selling very slowly, up to six months on the market. We haven’t had a foreclosure nearby in many years, though.
I’ve had a rough time this year, myself. Gone from an excellent income, to no income, to mediocre income that is just enough to pay the bills. Kept everything current and still have good emergency savings, though. No reduction to my available credit, and no absence of offers to refinance.
Rates are very attractive right now, if you’re looking at all, by the way. Got an offer of 4.75% for a fifteen year refi, 5.25% on 30. If it falls below 5 on 30, I might just go for it, to cut my overhead.
House prices are down in my subdivision, although still higher on this model than what we paid for it. And turnover is *very* slow.
I don’t want to refinance because the upfront costs add to the loan balance, unless we throw in cash I’d rather use elsewhere. I’m always concerned that we’re going to have to move suddenly, especially because we’ve been in this house longer than I’ve ever lived in a house my entire life. Bad enough to move with all the pets, without having to overprice the house!