Two questions for Dave if you're out there
Dave, first let me thank you for all the info. you post,it's been very enlightening. A friend of mine asked me this question, I have no idea-if he switches to an interest only mortgage, can he prepay principal? His thought is his conventional fixed rate mortgage is at 6%; he can get an interest only at 4%-he wants to make the same payment every month as he is making now on the conventional 6% mortgage, allocating the "extra" to an extra principal payment-does it work that way? Also, does it make sense when one's mortgage gets below $100,000 to take a home equity line to pay off the mortgage if there are no prepayment penalities? Thank you.