mckgolfman m asked:


I have a condo that I rent out and I have a line of credit that is at a lower interest rate than my mortgage. I am thinking about taking out some of that money to lower my primary home’s mortgage principal. I would still make the same payments and I think the tax situation with the interest on both loans is a wash. The credit line would not amortize the same as a structured mortgage, so more of the payment would go towards the principal instead of interest at first, so I think I can come out way ahead in the long run. Am I right? Are there any pitfalls I am not considering?
How can you say a mortgage and home equity line of credit amortizes the same? A mortgage has interest calculated the entire length of the loan and you pay it up front while the line of credit has an interest rate on the principal each month that is reduced by the amount I pay in excess of the prior month’s finance charge.

Debra

dwanal asked:


I’ve been approved for a 1st mortgage at a fixed rate of 7.38 and a 2n mortgage interest only at 10.425. This loan is for an investment property. I’ve been told that the 2nd loan is Home equity line of credit. How much will my payments go up on the 2nd mortgage and should I look for another loan. Thank You.

CLINT

costumes.us.com asked:


I am searching for the best mortgage calculators. Interest Only calculators and simple home mortgage calculators and loan calculators. I used the ones at http://www.1mortgagecalculator.net/index2.php and they seem pretty good. Just looking for comparisons.

THEODORE

Terry Edwards asked:


A home equity loan is a great choice for the homeowner who is looking for funds to use in improving their home, or paying off debts. But, there are so many other uses with this type of loan. Here are just a few of them.

Home equity loans or a home equity line of credit, will let you borrow money against your first mortgage. Most lenders will allow you to borrow up to 80% of your first mortgage, and you can use the money for whatever you desire.

Some ways in which people utilize the money from these loans include:

Paying off their first mortgage - If you have a high interest first mortgage and get a low interest equity loan, you can pay off the original and save a lot of money in the long run.

Paying off bills or debt - Now you can get rid of those high interest credit cards, or pay off those personal loans, etc.

Home improvements - This can be an opportunity to add on a new addition to your home and drive up your homes value; thereby improving your investment.

Personal items - You can get a new car, take a once in a lifetime vacation with the family or do any number of things with the money from your loan.

Paying off college expenses - These loans provide a way to put the kids through college and give them the education you’ve wanted them to have.

As you can see, a home equity loan can be used for just about anything. It may be just the answer you’ve been looking for in finding that extra cash you need.

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ALDEN