Interest rates are moving downward again this week. Now is the time if you have been thinking about refinancing for any reason.

It is time to consolidate bank home equity lines of credit. We have been refinancing many home equity lines of credit and have been pointing out some very disturbing information to our borrowers.

Many banks have language in the note that allows the bank to require a balloon payment if the home has a reduction in equity(value). The line is typically reviewed every 5 years. Don't let this sneak up and surprise you, Rob Kaiser will gladly review your home equity note as part of our application process.

I worked in the early 90s for a major regional bank that is still around and ran the alternative products division for home equity loans. I thought that I had seen it all, but I have even been surprised by the langauge some of these banks have put in their notes.

JT