What You Should Know About HELOC Reset
Now that several years have passed since the housing crisis and its aftermath, many people who borrowed against their home equity are getting close to a HELOC reset.
HELOC, or Home Equity Line of Credit, allowed thousands of homeowners to get financial relief by tapping into the equity in their homes. This might have gotten them through the financial crisis initially, but after a set number of years (usually 10), those loans will reset. This reset increases the monthly payment amount significantly.
This is a scary situation for a lot of borrowers. Reuters reports that over the next four years, over $221 billion in HELOC loans will reset. We’re ready to help these homeowners deal with the resets as they come.
Around $30 billion in HELOC loans will reset this year, and $53 billion next year. The pace will keep accelerating, with $111 billion in HELOC loans resetting in 2018. Many of these borrowers will be unable to handle the new higher payments after the reset.
There are many different programs available, and our certified housing counselors can work with individuals to come up with the best plan for each situation.
We’ve created a dedicated site for people facing a HELOC reset; visit us at HELOCHelp.org to get started or learn more. We have FAQs about HELOC resets that can answer more specific questions about the different programs available that can help.
If you’ve got a HELOC that is scheduled to eventually reset (which includes nearly 40% of HELOC loans) then check out our HELOC Reset site and get help. Don’t wait until the last minute to act.