Hit a weird milestone on a 15-year HELOC this morning

I been paying on this home equity line since 2010, way before rates went crazy. Thought I was making progress but then I logged in today and saw the principal balance hit exactly $50,000. That number stuck out because that's what I borrowed originally back when I redid my kitchen and added a bathroom. So after 15 years of payments I'm right back where I started, just with way higher interest this time. It's like all that time and money went to nothing but the bank's pocket. The adjustable rate jumped twice in the last 3 years and it ate up any ground I made. Anyone else look at their line and realize you basically ran in place for a decade?

3 comments

3 Comments

lauras837d ago

Are you sure the kitchen and bathroom actually added enough value to the house to justify 15 years of treading water with that HELOC? Because if the appraisal didn't go up with the market, you basically paid to give the bank a free vacation.

thomas.parker7d ago

You said "15 years of treading water" like that's some kind of tragedy. But let's be real, most homeowners aren't flipping houses for a quick profit anyway. They're living there. A nice kitchen and a solid bathroom make a house more comfortable to live in day to day. You can't put a price on not hating your own home. Plus if they've been in the house for 15 years since the reno, they likely built up equity from market appreciation too, not just the kitchen. The HELOC payment was probably manageable or they wouldn't have done it. I think you're overthinking this.

patriciareed5d ago

Right, because nothing says "winning at life" like owing the bank for a 15 year old kitchen that's already out of style. At this point the HELOC should come with a complimentary plaque and a participation trophy.