The terms in the title of this week’s post may not ring any bells. Yet understanding them is absolutely vital to the financial health of a vast number of retirees and near retirees.
One of the most popular mortgage options over the past few decades has been the HELOC, or Home Equity Line of Credit. The convenience and flexibility of this instrument has attracted tens of millions of borrowers with many billions of dollars in used and available credit. The numbers are staggering. But danger lurks for millions of homeowners. Especially since the crisis of 2008, these loans have some fine print that can bite you! Especially if you are not in the prime earning years. Millions of folks in retirement have already or are about to be shocked by huge payment increases. It’s no joke and it can be devastating. This important information can be seen here.