 |
Lowering Monthly Costs |
| |
 |
Hi, l would like to lower my monthly mortgage payment and I was told that I should do a home equity line of credit, which charges interest only for so many years. Is this a good option to take? We've been in our home for two years and plan on moving in 10 years or so. Could you look into this option and let me know exactly what the home equity line of credit is? Certain mortgage companies are letting many people know about this option. What about having a 40-year mortgage instead of 30 years? We are looking at options of lowering our monthly payments. Any other ideas? We cannot afford to do the biweekly payments |
| |
| |
 |
A bi-weekly plan would cost more, not less, because it involves sending the equivalent of one extra payment a year. It can shorten the remaining time but that's not your goal. A home equity line of credit is simply another form of mortgage. The risky part is that usually it involves an adjustable interest rate that could go up in the future. I don't know the details of what you're being offered, or what closing costs might be involved, so I can't say more. In general, though, I don't think much of interest-only loans or 40-year mortgages. They're like renting the house rather than buying it, and the monthly payment isn't all that much lower anyhow
|
| |
|
Edith
Originally published on January 1, 2005 |
| |
| |
|
Back to Summary
|
< Previous | Next > |
| |
|
|
