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  • Alex Grant February 8, 2009, 1:11 am

    Hey Joe,

    What if you did have the money to throw an additional $1000 per month at your mortgage. I have a couple of rental properties with HELOCs on both. I am not going to pay UFF for their software because I don’t think I need it but I was thinking about using my HELOC as my checking account to pay it down faster. Does the idea of using your HELOC as a checking account so that money is flowing in and out often and canceling interest hold true?

  • JOE February 8, 2009, 10:38 pm

    If you wish to pay ahead and are comfortable sending $1000/mo, by all means, you should do so. As far as the HELOC goes, if the rate is below the mortgage rate, letting it run a balance won’t hurt you if you are certain it won’t get canceled on you. If the rate is above your mortgage rate, there’s very little to gain through the HELOC shuffle, I’d not bother.

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