Home-owners in the US face an increase in payments on their homes as interest-only periods on home-equity lines of credit, or Heloc loans, begin to expire, RealtyTrac said.
Principal payments become due on the loans – some $158bn in value – from this year and until 2018. Monthly payments will increase by an average $146 for the 3.3m households that have such loans.
RealtyTrac’s vice president, Daren Blomquist, said “we’re at higher risk of default because you have higher payments on homes that continue to be seriously underwater,” referring to homes with negative equity.
