We have not discussed the impact of increasing interest rates on piggyback loans and HELOCs. The amount of those is possibly higher, and I wonder how many people will be able to make those payments once they double?
HELOCS are a little different – they are lines of CREDIT and hence more like a credit card, but with a lowish rate. The HELOC rates have been going up since Easy Al started raising rates. Mine did anyway! Before I dumped it for a HEL (Home Equity Loan) at a fixed rate.
HELOCs were tempting a couple of years back because they offered tons of money at 4% APR. That was better than most auto dealers could give you, and it was tax deductible! Once the rates started going up, it’s another story!
