How to Avoid Bank Fees

Banks now make a big piece of their revenue from those little fees they charge you here and there. A savvy consumer can get out of paying them. Most banks are making much of their money from inconvenience or convenience. More than a third of bank revenue now is generated from fees on consumer accounts. A wise customer can take advantage of the services banks are offering without paying fees.

Typically most of the heavy fees will show up on your checking account. You can negotiate with the bank to remove them. They do not want to lose you as a customer. So speak up you have nothing to lose. Worst case you can go to another bank.

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My Home Equity Line from Chase was just closed

I just wanted to report on a client of mine that just had their home equity line of credit closed. If you took out a high LTV or loan to value credit line or second mortgage you may be getting a letter shortly telling you that your line has been frozen or taken away. Banks that issued second mortgages are starting to get gun shy about leaving their credit lines open with declining property values and rising foreclosures. Do not assume that your line will always be there. If you are tapping into your equity every month to survive you may want to look for alternatives to get the cash that you need.

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Citi Mortgage anounces mortgage cutbacks on 2nd mortgages

Citi Mortgage, a division of Citibank, is cutting their loan to value limits on second mortgages to 85% ltv in areas of the country that are deemed to have declining markets. This is just another symptom of the the mortgage meltdown this country is experiencing. Chase has cut their lending limits to 75% ltv on second mortgages. Six months ago both of these lenders would lend up to 100% of the value of your home.

Lenders are cautious now. You need to do your homework now if you are trying to get mortgage financing on a home. Just because you want to do something, does not mean that the banks will be willing to work with you.

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