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


Karen Jones is a Licensed Mortgage Loan Officer (NMLS 307015) located in Phoenix and serving Arizona and California consumers with their home lending needs. As a Banker of over 39 years, Karen is dedicated in ensuring that her clients are well educated and prepared for their new home purchase.  Learn more about our 100% Financing programs and obtain your Buyer Credit Approval before you start shopping. Let a home loan specialist guide you by contacting Home Loan Officer, Karen Jones from AmeriFirst Financial, Inc. located in Phoenix, Arizona.











AmeriFirst Financial, Inc., 1550 E. McKellips Road, Suite 117, Mesa, AZ  85203 (NMLS # 145368). 1-877-276-1974. Copyright 2018. 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.  The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Karen Jones does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Karen Jones will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.