During the housing boom of the early 2000s, Home Equity Lines of Credit (HELOC) were originated at a record pace. A HELOC is a loan in which the lender agrees to lend a maximum amount within an agreed period (called a term), where the collateral is the borrower's equity in his/her house. In particular, between 2004 and 2008, a significant number of HELOCs with terms of 10 years were created. The draw period for these lines of credit are coming to an end, evoking conversation on what happens now.
Here is a brief summary of important facts anyone with an existing HELOC should get familiar with:
Which changes can you expect to come to your repayment terms now that your line of credit is amortizing?
So what should you do?
Navigating changes to your HELOC can be difficult and an experienced Mortgage Banker can help you find the answers to your specific questions. Contact me to discuss your situation and how we can find a solution to meet your needs.
Topics: Mortgage, Home Equity, Understanding your heloc, repaying your heloc, draw period, what you need to know about heloc, home equity line of credit, HELOC, Eric Gates, Apex Home Loans, prime rate, Homeownership