HOW’S THAT HOME EQUITY LOAN DOING?

The linked column, by Gretchen Morgenson, from today’s NY Times, “Here Comes the Catch in Home Equity Loans”, http://www.nytimes.com/2012/07/15/business/for-many-home-equity-loans-payment-shock-is-near.html?ref=economy, points-out that, for many Homeowners, the Piper will be Coming to their House Soon to be Paid. The Payment of Interest Only Option will be running-out for many Homeowners, according to a Report , Published by The U.S. Comptroller of the Currency noted that, between 2014 and 2017. At that time, both Principal and Interest will be due.

The problem that many will encounter is actually threefold: Interest rates are Adjustable and may very well rise at some point; the combined P & I will certainly add to the Amount of the Monthly Payments and Re-financing (assumably into a Fixed-Rate Mortgage) could be difficult if the Current Home Values have declined significantly since the Mortgages were originated.

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