Using A Home Equity Loan to Pay off your Mortgage?
Wednesday, April 30th, 2008So the Fed’s are continuing to bring the short term interest rates down, this is good news. Some will say it doesn’t matter, but lets take a look at what it really means.
Short term interest rates that are tied to the Prime are now a bit lower. Granted most people won’t notice because many people choose to live on credit card debt. If you are looking to make a difference in your personal finances, now is a time to aggressively attack those credit cards.
How, you ask? Well, now Home Equity Loans are much lower as well. Back in 2004 Home Equity Loans (a.k.a. HELOC’s) were all the buzz. As a loan officer, I think I did at least a few every week. They were like super sizing a loan “would you like a home equity loan with that? There is no additional cost and no extra closing costs as long as you keep it open for 3 years, and you never have to use it”. It worked like magic and it was what people wanted. The savvy consumers took advantage of them and converted high interest credit card payments into lower interest, partially tax-deductible payments.
Well, it’s 2008. and again, it’s a great time to get a Home Equity loan, but this time, I don’t just recommend paying off debts with it, I recommend paying off your mortgage with it. WHAT? Yes, you heard me right - I am recommending that you payoff your first mortgage with a Home Equity Loan. Before running out and doing this on your own, I will tell you that you have to work with a financial expert to make this work otherwise, you will be in lots of trouble. There is a special software that will take into account all of your debts including your first mortgage and show you how to leverage short term interest and its payment cycles to pay off all of your debts, mortgage included, in the shortest amount of time - usually less than 10 years.
If you want more information on how to get this done, you can visit UFirst, or call me at 800-453-9290
Until next time,
Anthony
Original post by Anthony