It is human nature to procrastinate, and usually it is costly. It is also human nature to live in denial and not deal with impending negative consequences.
Even though checking on your (or your client’s) HELOC (Home Equity Line of Credit) terms is not difficult, many borrowers will be shocked to find that their nice, low, interest only payment that fits into their budget has become a big, bad Principal and Interest payment that exceeds their budget and changes their lives.
Folks age 62 and over may have a solution that will delight them and allow them to maintain a lifestyle that would be impossible without this solution. We are talking about the HECM (Home Equity Conversion Mortgage).
I can explain how this solution can be implemented and do a quick check on a specific situation to determine if it will work. Ask me! Don’t let clients face consequences beyond their control and beyond their ability to contend with. Even if there is no reset looming, just about every HELOC has restrictions based on changing property value and or rising interest rates. It is vital to understand what call provisions (yes most have one!) and limitations might affect borrowers.
Please take a look at this enlightening yet frightening article: