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Mortgage Broker News | 07 Jun 2018, 01:18 AM Agree 0
We're officially in a rising interest rate environment, and that could spell trouble for some homeowners who have taken out home equity lines of credit
  • Luke | 07 Jun 2018, 09:37 AM Agree 0
    I'm sorry Garrity...your payments could double?? Do we expect Prime to go up 4% in the next few years?
  • Bob | 07 Jun 2018, 03:19 PM Agree 0
    Many HELOC's have options of interest only payments of 5, 10 , 15 or 25 years - within this period of time before you have to pay into principal rates higher or lower based on the market. Since prime is is anywhere from 3.45% to 3.60% (TD) current, an option is definitely to start paying into principal now vs. later. There are risk in many ways. Another option to refinance and consolidate the HELOC into the mortgage. There is always risk to any variable term product, however history of risk have been very low compared to fixed.
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