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Rekna · 05-05-2008, 12:12 AM

I'm trying to follow the logic of what this article (http://bankingandmortgagesecrets.com/) says about using your credit cards to pay off your mortgage early and it doesn't make sense to me. In their example a woman makes $5000 a month and spends $4000 a month. They have her borrow her maximum amount on her credit cards to make a balloon payment on her mortgage and then they pay off the credit card with the $1000 of extra cash around each month. Her credit card has a higher rate than her mortgage. Wouldn't it be smarter for her to just pay that extra $1000 each month into her mortgage and not put the debt on her credit card where she pays a higher interest rate?

Am I missing something or is this article just bad advice?

05-05-2008, 12:12 AM	#1 (permalink)
Rekna Junkie	The Mortgage Loophole Report.... I'm trying to follow the logic of what this article (http://bankingandmortgagesecrets.com/) says about using your credit cards to pay off your mortgage early and it doesn't make sense to me. In their example a woman makes $5000 a month and spends $4000 a month. They have her borrow her maximum amount on her credit cards to make a balloon payment on her mortgage and then they pay off the credit card with the $1000 of extra cash around each month. Her credit card has a higher rate than her mortgage. Wouldn't it be smarter for her to just pay that extra $1000 each month into her mortgage and not put the debt on her credit card where she pays a higher interest rate? Am I missing something or is this article just bad advice?