By Keat Foong | MHN Online
Home equity loans seemed ubiquitous in the 2000s, and were often said to have contributed to the economic boom during that decade. Now that borrowers have to start repaying these lines of credits, however, lenders may be fearing a wave of defaults.
As the debt repayment schedule commences for home equity lines of credit, the concern is that many borrowers may face “payment shock” when they realize they have, for instance, “another $400 per month to pay” in loan servicing costs, explains Ezra Becker, vice president, Research and Consulting—Financial Services at TransUnion LLC.
