My broker said the HELOC rate was fixed, but the fine print showed a 2% jump after 5 years.

I was looking at a home equity line for a kitchen reno in Austin, and the initial offer looked solid. I read every page and found a clause that would have added over $200 a month later on. Has anyone else caught a sneaky rate change buried in their loan papers?

3 comments

3 Comments

barnes.karen1mo ago

A two percent jump after five years is the kind of detail that pays for a broker's vacation. Good on you for actually reading it all. That's how they get you, counting on the paperwork fatigue. My cousin got caught by a similar trick with an auto loan, and it took him years to dig out.

bettywood1mo ago

Tell me about it, @barnes.karen. My old mortgage had a nasty little clause like that buried on page seven.

skyler1901mo ago

Ugh, it's everywhere now. They hide the real cost in the terms for everything, even phone plans and gym memberships. You have to read every line like it's a trap.

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