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News & Press: Industry News

Home Equity Loans Face Rate Reset

Monday, December 19, 2016  
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Home Equity Loans Face Rate Reset

Many home equity loans taken out 10 and 11 years ago, are facing interest rate resets just as rates are beginning to rise. According to Barron’s Magazine, around 840,000 of the loans reset this year and a million more in 2017. The home equity loan reset, combined with rising interest rates, is predicted to negatively impact refinancing in 2017. Areas where homeowner’s equity has remained low will be harder hit than areas, including many in California, that have seen a nice recovery from the lows of the housing bubble and subprime lending. The impact of rising refinance rates and home equity loan interest rate resets may be exacerbated for homeowners who used PACE financing for energy improvements the resulted in reducing their home equity.

California Land Title Association

1215 K Street #1816 Sacramento, CA 95814-3905
Email:  |  Phone: 916-444-2647  |   Fax: 916-444-2851