Quote:
Originally Posted by J-DaWg
Has anyone ever heard of buying a house with a line of credit? A friend has told me it can be done,. That way monthly you are only required to pay the interest and whatever you pay above the interest goes straight to the principal. You could pay off a house in no time with a plan like that, and if you were having a tight month you could just pay the interest!
Anyone heard of this?
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Most banks offer an interest only loan anyways.
Quote:
Originally Posted by J-DaWg
You could pay off a house in no time with a plan like that,
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Not sure how making interest only payments would make the loan get paid down quicker, but OK. Again, most home loans allow you to make extra principal payments if you want with no charge.
Benefits of loan - fixed rate.
Benefits of LOC - possible lower rate, but it will go up eventually at this point in time. Also, banks will probably want to secure the line with the house, or charge you a much higher rate.