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Us - New Wave Of Mortgage Trouble On The Horizon?

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http://www.foxbusiness.com/economy-policy/2013/11/26/new-wave-mortgage-trouble-on-horizon/

U.S. borrowers are increasingly missing payments on home equity lines of credit they took out during the housing bubble, a trend that could deal another blow to the country's biggest banks.

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.

For a typical consumer, that shift can translate to their monthly payment more than tripling, a particular burden for the subprime borrowers that often took out these loans. And payments will rise further when the Federal Reserve starts to hike rates, because the loans usually carry floating interest rates.

Tick tock...

Still I'm sure the US won't be bailing out it's banks again....

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http://www.foxbusiness.com/economy-policy/2013/11/26/new-wave-mortgage-trouble-on-horizon/

Tick tock...

Still I'm sure the US won't be bailing out it's banks again....

...so they were IR only for 10 years....morons ....this is a missell ..just like our lot ....what do they expect ... the brokers grabbed their commission ...has a 10 year safe fuse ...try getting that commission back now.... :rolleyes:

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