Adding to the interesting saga of reseting HELOC’s (Home Equity Lines of Credit), TD Bank recently released the results of their Reset Measure Survey showing that 43% of U.S. homeowners would be affected and of those, 27% were unaware of their loans impending reset. The survey polled more than 800 homeowners nationwide with HELOC’s.
Key takeaways:
- Three-in-ten homeowners have received a Home Equity Line of Credit since 2014
- Over one-quarter do not know when the HELOC Draw Period ends
- 43% are not clear what will happen to their monthly payment when the Draw Period comes to an end
- Home renovations and debt consolidation are the most popular uses for a HELOC
“Many HELOCs allow borrowers to draw for 10 years and make interest- only payments,” said Mike Kinane, Senior Vice President, Home Equity, TD Bank. “When this draw period ends, borrowers are required to pay principal and interest, which may increase their monthly payments…”
Click here to read the news release from TDBank.com.
Click here for the survey results summary sheet.
