The home equity lines of credit, known as Helocs, were originated before the housing market collapse when home values were still climbing. According to TransUnion, of the $474 billion in Heloc balances held by nearly 16 million consumers as of the end of 2013, nearly half of the loans were originated from 2005 to 2007, the peak year.
Many of these lines have a 10-year draw period, when borrowers may tap their credit and only make interest payments on the balance. As the draw periods come to an end starting next year, borrowers will have to begin paying both interest and principal on the outstanding balances. The TransUnion study estimates that more than half of the loans have balances of $100,000 or more.
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Neal Paskvan is a full time Realtor specializing in Downers grove, Darien,Woodridge, Westmont and Du page county Real Estate
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