Question for any mortgage experts out there. I have a large heloc line. If I don’t use the line, I am at risk that the bank will decide to take it away. If I use the line (even if I keep it in cash), can the bank call me on it (i.e., slash the line anyway and tell me to pay it back)?

For the readers out there that follow the comments, you’ll know this question came up yesterday, but as we know only about 10% of you actively participate in comments, we thought we’d put this to the front and fish for some more (not necessarily better) answers.

Mortgage experts? This one is for you….

One reply yesterday from our very own “the Banker”

Great question. Draw the money and draw it today. It certainly depends on your equity situation and the neighborhood/city that you live. But, it is far better to pay the interest for a few months as opposed to having the line freeze up. If the lending standards lighten, then perhaps you cost yourself some “mortgage interest,” perhaps a writeoff, unless you exceed the cap.
Until, there is truly resolve, banks will continue to constrict. But, look for my next post, perhaps this housing bill may make a little sense.

Any other experts, please answer in the comments below.