Watch Out For That Equity Line

Many borrowers don’t realize that when they take out a home equity line of credit (HELOC), they are entitled to make interest only payments for just the first 10 years of the loan. At that point, the borrower cannot take any more draws and must begin paying back the balance over 15 years with fully amortizing payments. On a HELOC of $200,000, this can amount to an increase of $1,000 or more per month.

Many took out HELOCs 8-10 years ago so the clock is ticking on the low, interest only payments.  Now might be an ideal time to combine your first loan with the HELOC and lock in a low fixed rate or 5 or 7 year ARM. This way you’ll tied down a rate for a fixed period of time and avoid the payment shock when your HELOC recasts. Give us a call and we’ll do the numbers.


CPC Mortgage was founded in 1986 by Ed Cree and John Patterson. We are a full service mortgage broker offering competitive rates and programs on conventional conforming and jumbo loans, FHA, VA and reverse mortgages. Over the years we’ve arranged financing on over 6,000 loans totaling just under $2 billion. The backbone of our business for over 28 years has been to advise our clients as if it was our own money. We have never spent money on mass market advertising, relying instead on referrals from real estate agents and former clients. If you treat people right, they will come back and they will tell their friends. We’re proud of our track record and will continue to stress customer service to all of our clients.

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