Home Equity Lines of Credit

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Filed under: HELOC

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Unlike 30 year mortgages, the interest rates on most Home Equity Lines of Credit (HELOC) are based on the Prime Lending Rate. So when you hear the FED talking about raising interest rates, HELOCs are directly related to these hikes. In fact, if the Prime rate goes up, the interest rate (and the payment) on your HELOC will go up immediately.

For families or individuals who have set their household budgets based on their current HELOC payments, this increase can have traumatic results on your finances.

The smart way to approach a HELOC is to look for ways to protect yourself from FED rate hikes which, at some point in the future, will almost certainly occur.

If you have a HELOC and would like to discuss your options, please feel free to give me a call.

Check out my video this week for more information.

 

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