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How do HELOCs enter into this? I'm assuming many are now trapped into one of those that they were lured to during low rates? That is, it isn't just down payme
by taeric 3y ago
How do HELOCs enter into this? I'm assuming many are now trapped into one of those that they were lured to during low rates? That is, it isn't just down payments and moves, but people that were close to owning getting trapped in monthly payments?
- brianwawok 3y agoI think either HELOC or a very low down payment mortgage (0% down VA loan) run this risk. Say you buy a house for 300k with 0 down. After 3 years of living there, you still owe something like $280k. If the price fell to 200k.. you would need to come up with 80k to move (PLUS whatever the new down payment is). But odds are very good if you took a 0 down payment mortgage, you aren't able to easily scrap together 80k to cover it.
- taeric 3y agoMakes sense. Also, I realize you can view a HELOC as basically a move into the same location. That is, whether a house has a HELOC or a new mortgage doesn't really matter, and both are likely driven by the same dynamics.