Refinance My Mortgage Mortgage Cycling Pay Your Mortgage Off In Less Than 10 Years


Refinance My Mortgage Mortgage Cycling Pay Your Mortgage Off In Less
Than 10 Years 1

Refinance my Mortgage - Mortgage Cycling Pay your Mortgage off in​ less than 10 years
Refinance my Mortgage - Mortgage Cycling Pay your Mortgage off in​ less than 10 years
With mortgage rates near 20-year lows,​ competition in​ the​ mortgage industry is​ fierce .​
It seems like every day a​ new mortgage loan strategy comes out that is​ suppose to​ be the​ best thing since sliced bread .​
Whether it's a​ mortgage with no closing costs or​ an​ interest only mortgage,​ everyone is​ claiming they can save you​ a​ ton of​ money .​
Now someone has come out with something called Mortgage Cycling .​
Mortgage Cycling could save you​ thousands of​ dollars or​ it​ could cost you​ your home.
Refinance my mortgage and Mortgage cycling is​ a​ program that advertises itself as​ a​ method to​ payoff your mortgage in​ 10 years or​ less without making biweekly mortgage payments or​ changing your current mortgage .​
Does mortgage cycling work as​ advertised? the​ answer is​ unequivocally yes ? with a​ few caveats .​
I'm going to​ let you​ in​ on​ the​ secret to​ mortgage cycling.
Refinance my mortgage and Mortgage cycling is​ based on​ making huge lump sum principal payments every 6-10 months .​
What this means is​ mortgage cycling works well for those who have at​ least a​ few hundred dollars in​ extra cash at​ the​ end of​ each month .​
The problem is​ most people don't have that kind of​ cash available.
Refinance my mortgage and Mortgage Cycling relies on​ using a​ revolving Home Equity Line of​ Credit to​ make huge lump sum payments against their original mortgage principal balance .​
When you​ take out a​ home equity line of​ credit,​ you​ pay for many of​ the​ same expenses as​ when you​ financed your original mortgage such as​ an​ application fee,​ title search,​ appraisal,​ attorney fees,​ and points .​
You also may find most loans have large one-time upfront fees,​ others have closing costs,​ and some have continuing costs,​ such as​ annual fees .​
You could find yourself paying hundreds of​ dollars to​ establish a​ home equity line of​ credit .​
Most home equity lines of​ credit also carry what is​ known as​ interest rate risk.
Home equity line of​ credit interest rates are typically variable .​
The Federal Reserve is​ currently in​ the​ process of​ raising the​ overnight federal funds rate .​
As the​ Fed continues to​ raise rates,​ it​ is​ all but inevitable that variable interest rates for mortgages will also rise .​
Your savings may not be as​ great as​ anticipated.
While Refinance my mortgage and Mortgage Cycling does have some additional costs for most people,​ that is​ not what makes this mortgage reduction strategy risky .​
If you​ use a​ Home Equity Line of​ Credit and money gets tight,​ you​ could lose your home and the​ equity you​ have built up .​
Home equity lines of​ credit require you​ to​ use your home as​ collateral for the​ loan .​
This may put your home at​ risk if​ you​ are late or​ cannot make your monthly payments .​
And if​ you​ sell your home,​ most lines of​ credit require you​ to​ pay off your credit line at​ that time.
Refinance my mortgage and Mortgage Cycling requires you​ to​ make mortgage payments and Home Equity Line of​ Credit payments for up to​ 10 years .​
For most people mortgage cycling is​ an​ extremely risky way to​ payoff a​ mortgage .​
Mortgage cycling should be used only after a​ careful assessment of​ the​ risks and benefits .​
Prepaying your mortgage is​ smart .​
You should explore all of​ the​ mortgage reduction alternatives before choosing Refinance my mortgage and Mortgage Cycling as​ a​ mortgage reduction strategy.



Refinance My Mortgage Mortgage Cycling Pay Your Mortgage Off In Less Than 10 Years



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