HELOC loans. Can you change the payment?

Question

Hi. I am wondering if its possible to changed a HELOC loan as in terms of the payment. It's 1% now even though the agreed upon payment was to be interest only. I got shocked when I opened the letter I recieved and was told I owed $200 even though the bank and I had agreed to interest only. I never would have signed if I had known it was the 1% and now since its past the so many days to cancel I can't cancel. I honestly feel like I was duped in so many ways. Was so excited to finally get ahead and maybe do some remodeling and now I cant even use the HELOC for what I want because of the payment. I was told it would be interest only and its not. So frustrated. What can I do?

Nicole Pierce · Answer

I also just read a few things etc that even said HELOC loans are usually interest only during the draw period

Nicole Pierce · Answer

Am I able to switch to interest only? That is what was discussed when I talked to the lender etc except they told me I signed for the 1%. Only found that out when I saw the bill as I agreed to interest only but they told me I signed for 1% and now I cant afford any of my bills because this bill is higher than what I was told I would pay because it should have been interest only. Can I just change it to interest only

Jeremy Roberts · Answer

@Nicole Pierce I think you have to weigh the expense of an early termination fee against lower payments. The lender is likely telling you the 1% is better because you'll build equity faster. It might be worth considering.

Nicole Pierce · Answer

And how exactly does getting another lender work cause will they just transfer my loan and I pay the penalty fee to cancel

Nicole Pierce · Answer

I called and pretty much tols they cant help me even thought the person I talked to said I could do interest free wxcpet now that so many days are up I cant cancel etc. And I told them that is what was agreed upon I was told I could get interest only she looked it up and said nope you have the one percent which is better this way. Its not better if it makes it harder to pay my bills

Patricia Steiner · Answer

Contact the lender. The billing may be a mistake.  If not, request the loan be paid off by an equity credit line that offers that payment option.  Equity Credit Lines are available at every bank - and they're proactively soliciting that business. Push comes to shove, change lenders.  But talk to the lender first - and even his/her manager.