Many homeowners took out Home Equity Lines of Credit (HELOCs) on their homes almost ten years ago. Sometimes these loans were taken out to purchase their homes and avoid mortgage insurance. Other times they were taken out to finance renovations.  It was a great strategy because rates have remained low on these adjustables for so long.

What some don’t know is that many HELOCs will expire as soon as ten years from origination. That can mean a reset for some or, worse, a large balloon payment. A balloon payment could result in a financial disaster for many homeowners. The question is – what should you do?

1.  First, find out when your HELOC either resets as fully amortized or might balloon.

2.  Second, get with me and I can present the best alternatives for either refinancing or helping you obtain a new HELOC or a fixed rate second mortgage.

Homes in most areas have appreciated during the past five years and interest rates have remained relatively low. But they are predicted to rise over the next several years and therefore adjustable rate HELOCs will also rise. This may be the ideal time to refinance your mortgage and/or replace your HELOC.  

My goal is to give you the best advice possible. I look forward to hearing from you.