The loans are a problem now because an increasing number are hitting their 10-year anniversary, at which point borrowers usually must start paying down the principal on the loans as well as the interest they had been paying all along.
More than $221 billion of these loans at the largest banks will hit this mark over the next four years, about 40 percent of the home equity lines of credit now outstanding.
2 comments:
Scoot Adams is brilliant in "Dilbert" but this is personal and moving:
http://www.dilbert.com/blog/entry/i_hope_my_father_dies_soon/
A lot of people were using their homes as an ATM, now it's time to pay that back... funny how so many people thought it would just keep going and never planned on having to pay.
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