Bookmark Another mortgage gimmick or viable option?
Hey folks, been lurking on the forum for awhile. My wife and I are moving towards purchase on a Lynnwood home in late September. We'll be owning for the long-term, which means we want to be smart on financing.
I have contact with a few lenders. One, through Wells Fargo, held my last loan and has been a decent fellow the past 4 years. Recently he's gotten quite keen on a new way to pay off a mortgage, in a sense you have your savings and checking in an equity account of sorts. This helps pay down more interest than happens normally, supposedly saving years off of the loan. That's the theory at least.
Anyway, what better group of skeptics to bounce this idea off of! :twisted:
Here's the website, and I'm curious if you folks see it as a scam or viable alternative. Thanks for your thoughts!
I have contact with a few lenders. One, through Wells Fargo, held my last loan and has been a decent fellow the past 4 years. Recently he's gotten quite keen on a new way to pay off a mortgage, in a sense you have your savings and checking in an equity account of sorts. This helps pay down more interest than happens normally, supposedly saving years off of the loan. That's the theory at least.
Anyway, what better group of skeptics to bounce this idea off of! :twisted:
Here's the website, and I'm curious if you folks see it as a scam or viable alternative. Thanks for your thoughts!
Comments
Regarding using a home equity line of credit to "pay off your mortgage early," yes these products are slowly coming back. For the most part, these products are for people who are very wealthy. The average random home buyer or homeowner is not financially disciplined or sophisticated enough to understand what they're signing.
There is a reason why the plain vanilla 30 year fixed rate mortgage has been around since 1934. You want to pay off your mortgage earlier? Just make extra principal payments. Or get a 15 year mortgage.