Early last year sold equities to pay down my HELOC. At that time the interest rate was still fairly high.
The HELOC interest rate now is much lower (as are returns for deposit accounts).
I'm wondering if I should pull the cash out of the HELOC and put it into various accounts (depository, investment, etc...). The number isn't exactly $100k, but it's close enough for this kind of thinking.
Why am I thinking this way?
I've heard rumors that some banks have been freezing lines of credit in some areas - though nothing specific in Chicago. I assume the coasts were hit more heavily as the value of home equity dropped there much more severely than in the Midwest.
I need some or much of this money as emergency funds in case I lose my job. (it's not my only potential cash source, but an important one).
Also, considering that the market is quite low, maybe it's time to put some or all of it back into the market.
What would you do? I'm really chewing on this issue right now. If you pulled it out, where would you put it?
To feel more comfortable about my legal situation with the HELOC, I may ask a real estate attorney his opinion on whether the bank can freeze my HELOC. How would you confirm it?