Guest Blogger: Scott Evans Talks About HELOC
In my last post, I shared an article by Scott Evans about ARM Rates. This is a continuation of mortgages. Scott Evans wrote about Home Equity Line Resets
Home Equity Line Resets
For some, other looming issues are Home Equity Line of Credit (HELOC) loans that were taken out between 2006 and 2008. A typical HELOC provides a 10-year interest-only payment option but then will convert to a fully amortizing 15-or 20-year loan (where you would be paying the principal back). This can increase your payment considerably depending on the size of your loan. If you fall into this category, it is best to be proactive and check your paperwork. It doesn’t hurt to call your existing lender to see if they offer any alternative arrangements.
The delinquency rates on these loans are increasing at many of the large banks, so some are working in advance to offer different structures to mitigate the risk of default. With home values increasing, sometimes we can consolidate your first and second mortgages and provide you a slightly lower rate, protecting your HELOC rate from increasing later on.
We offer a unique, side-by-side video comparison, of several different refinancing options specific to you, depending on how long you plan to stay in your home. Even if you aren’t sure or don’t think you will stay in your home long, oftentimes we can refinance with very little in closing costs… Call us to explore what options we have available for you.--- SDE
Robert D. Bordett CFP, CDFA
Collaborative Practice and Mediation Services