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| 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. |
Follow-Up Postings:
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- Posted by Dave_Donhoff (dwdonhoff@hotmail.com) on Fri, Feb 20, 04 at 18:42
| Hi Cindy, Dave, first let me thank you for all the info. you post,it's been very enlightening. My pleasure! A friend of mine asked me this question, I have no idea-if he switches to an interest only mortgage, can he prepay principal? Absolutely! 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? Sure! He'll be accelerating his payoff 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. It may, depending on the desired results and your future visions & expectations of the interest rate markets. All the best! |
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- Posted by CindyBelleZ6NJ (My Page) on Sat, Feb 21, 04 at 16:29
| Thank you Dave! As always, a pleasure to read your posts. |
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