Is Your Equity Credit Line Coming Due?

Do you have a Home Equity Line of Credit (HELOC) coming due? If your HELOC is getting close to its 10th year, and you still have a balance owed, you most likely will be seeing a large spike in the monthly payment once your enter the repayment term of your HELOC.

Being proactive and preparing for the change that will occur is highly recommended and most banks are notifying their clients 6-12 months in advance, giving them plenty of time to plan.

HELOC programs were sold to homeowners in 2005-2006 prior to the recession when home values were higher than where they are today. And most consumers do not want the larger payments that are going to start to be required. Homeowners need to know that they have options:

  • Payoff Your Equity Line of Credit. You can use assets from your bank account or investment account to pay off the line of credit or pay it down to make the term portion of the loan more affordable.
  • Sell Your Home and Buy A New Home. You can sell your current home and pay off both the first and 2nd Equity Line of Credit and then purchase a new home that is affordable to your budget.
  • Refinance the HELOC and Your Current First Mortgage Into a New Mortgage.  By refinancing the HELOC into a new primary mortgage, you could take advantage of a fixed interest rate that is still low by historical standards. Consider refinancing into a 15- or 20-year mortgage to reduce total interest payments.

Equity Credit Line Coming Due

 

There are pros and cons to each strategy and you need to explore the best options for you and your personal financial plan.

Home values have regained since the recession, however in many instances values are not as high as the values of when you were granted the HELOC in 2005-2006.

EQLOC’s that were taken out in 2005-2006 were 2nd mortgages that consumers used for various reasons. And it many cases, the EQLOC was not Purchase Money.  (Purchase money means that it was used to purchase the home itself). If your equity credit line was not a Purchase Money 2nd, then you do have this addtional concern and that is the current value of your home.

If your home values have not regained the full value, then you may need to bring in additional funds to bring you to an 80% LTV (Loan-to-value).   Most refinances require a Loan-to-value (LTV) of 80% or lower.

We do have a solution:

AmeriFirst Financial, Inc. features a home loan that allows you to refinance your first and second mortgage into a new home loan:

  • Consumers are able to finance up to 90% of the current value of their home with no PMI.
  • Consumers can choose either an ARM (Adjustable Rate Mortgage) if they plan on staying in the home for another 5-7 years
  • or they can refinance to longer terms 15, 20 and even 30 years for peace of mind of fixed mortgage payments.

This 90% Refinance program is serving hundreds of Arizona homeowners keep their home and not forcing them to move.

If you would like to explore your personal situation, please contact at:

 

90% Refinance Mortgage

 

Visit me online at www.kjones.amerifirst.us

 

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AmeriFirst Financial, Inc., 1550 E. McKellips Road, Suite 117, Mesa, AZ  85203 (NMLS # 145368). 1-877-276-1974. Copyright 2015. All Rights Reserved. This is not an offer to enter into an agreement.  Not all customers will qualify.  Information, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all products are available in all states or for all loan amounts. Other restrictions and limitations apply. AZ: Arizona Mortgage Banker License No. BK0013635; CA: Licensed by The Department of Business Oversight under the California Residential Mortgage Lending Act; CO: Regulated by the Division of Real Estate; WA: Washington Consumer Loan Company License No. CL-145368. AmeriFirst Financial, Inc. is an independent mortgage lender and is not affiliated with the Department of Housing and Urban Development (HUD) or the Federal Housing Administration (FHA).

 

Equity Credit Line Coming Due

AmeriFirst Financial, Inc., 1550 E. McKellips Road, Suite 117, Mesa, AZ  85203 (NMLS # 145368). 1-877-276-1974. Copyright 2017. All Rights Reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all products are available in all states or for all loan amounts. Other restrictions and limitations apply. Click Here for Licensing Information. The services provided by Karen Jones are not a condition, nor do they create any obligation for any form of remuneration for any real estate settlement service related to any referral.

 

 

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