A good portion of those, that still own their homes, were 10 year interest only loans. Have you been paying your principal? Or have you taken advantage of these really low rates and just paid the minimum....the Interest Only?
I read an article this morning that makes me realize I better share the info! I've got a HELOC, it got frozen, of course, when the housing market plummeted. It is one of those 10 years and will come due in about four more.
But, I pay principal on mine. Quite a bit of extra principal, every dang month. Honestly, some months I pay less, but most I pay quite a bit extra. But, I'm not a risk taker. Never have been, doubt that will change either.
So I pay extra, regardless of the market. But, there is incentive. If my townhouse, upside down now a rental, doesn't come back to anywhere close to what I paid for it when the 10 years is up...I've got to make sure I'm ready to pay that HELOC off.
If you haven't really been thinking about this, I suggest you do.
It's going to matter sooner or later.
And, sticking your head in the sand won't make the balance go away.
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