Need advice on increasing my heloc

[Maximus330I]

I closed on my house a few months ago from Countrywide and used a 80/20 loan. The price of the house was 350k, thus 280k is at 5.75% fixed for 30 years and 70k is a heloc with a rate of prime+2.5%. The reason the heloc is so high is because the loan was 100%ltv. In the past few months my house has appreciated to 375k and counting. It's insane here in CA. Once my heloc hits my credit, it will destroy my fico because it will be reported as a revolving loan. Thus, fico will see it as a maxed out credit line of 70k :shock: I anticipate the house reaching 400k within 6 months or so. Is it possible to refi and to get a higher credit limit? Thus, if the house is worth 400k, my heloc could be as much as 80k (20%). I dont want to spend a whole lot of money on the refi btw. I suppose it wouldnt be worth it to me to refi the heloc until the house reaches a level of about 450K+. Any insights are appreciated.

[willtygart]

now that you are in the country wide system you are an easy canidate for refi's..the only question will be the value...which typically you will have to own the home for 12 months to use the new value..even if your scores drop because of the heloc, you should be able to easily refi the heloc into a second lien (wouldnt touch your first if i was you) because cw will look more on your payment history with them and your other accounts as opposed to your actual score........since you DID go through the retail side i suggest you mention this to your loan officer...though be aware that they may not be interested in you anymore because they already go their money from the bigger sized first ....an the second mortgage will not be as attractive (profitble) to them. Good luck and welcome back!

[Maximus330I]

Thanks Will for the info. I will definitely wait a year or 2 until my house appreciates some more. The only thing that sucks is that the prime rate will inevitably increase. Thanks again.