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Both loans are usually for shorter terms than first mortgages.
When you borrow money for a home equity line of credit, the amount typically is capped at no more than 80 of your homes value.
Lenders may not be so willing to work with you if you have ignored their calls and letters offering help.
Bank of America, for instance, is notifying customers 24 months ahead of the end of draw phase, so borrowers can plan ahead.When the repayment period begins, youll need to make principal-and-interest payments to repay your principal balance within a specific time frame.This can be a problem if you have to move and must sell your home.Talk with a home equity specialist at for more information.Helocs come in two varieties: One with an interest-only mzansi whores draw period.If you have a home equity line of credit, you have been able to draw (or access) funds as needed, up to your credit limit, for a specific number of years.What if the new monthly payments during the repayment period are too high for me to manage?The last thing you should do is try to duck the problem.You may have other options to repay your outstanding balance.The combination may increase your monthly payments substantially, especially if you made interest-only payments during the draw period.When the interest-only loan matures, there will be a balance due at loan maturity.How large a line of credit do I qualify for?
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