building your life debt free? -Christian
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A mate of mine went on a interest free credit card balance transfer bonanza. He racked up over $100,000.00 in interest free cc loans for six months and stuck it all in his mortgage offset. Lots of paper work and moving money back and forth initially but it seems to be working for him
Well, if you can get those sort of credit card offers, then I say go for it, for sure :-)
Christian Graus Driven to the arms of OSX by Vista. Read my blog to find out how I've worked around bugs in Microsoft tools and frameworks.
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Christian Graus wrote:
At the end of the day, the most you can offset your house by is a months salary
yep - too true - but when you average it out, every month you effectively reduce the interest by a little by keeping the money in there - and you can access it if you need to. Takes discipline though! Paying extra off a traditional mortgage is good - but a lot of people won't risk it as they know it's pretty much locked in. My sister-in-Law is the direct opposite - emigrated to oz with loads of (hubby's) money, bought a house for cash, a pair of identical cars (well, why not, eh?) big TV etc. etc. Then they were a little short on cash - so borrowed $80k against the house. Paid off the credit cards, then lost all sense of reason and started spending the rest like it was a gift. of course, it ran out, so they borrowed more. And spent it. Then had to both get full time jobs (they'd been studying & working part time) to cover the payments. now they're not only back to square one debt-wise, but they also have the worse hose on the best street - and it's so bad that she told me the other day that she won't get it valued by a real estate agent because she's too embarrassed by the state of the place! we're actually tempted to buy it from them as an investment, tart it up and make a bundle...
___________________________________________ .\\axxx (That's an 'M')
_Maxxx_ wrote:
Then they were a little short on cash - so borrowed $80k against the house. Paid off the credit cards, then lost all sense of reason and started spending the rest like it was a gift.
Yes, I've seen people who do that. It's a mess.
_Maxxx_ wrote:
we're actually tempted to buy it from them as an investment, tart it up and make a bundle...
LOL - that would show them !!!!
Christian Graus Driven to the arms of OSX by Vista. Read my blog to find out how I've worked around bugs in Microsoft tools and frameworks.
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Many lenders offer balance transfers at 0% for six months on new credit cards. see here[^] Take your existing cc with say 10k limit, take a cash advance for the full amount, stick it on your mortgage. Go to city bank for example, get a new cc from them, transfer the balance from your existing cc at 0% for six months. In six months take the 10K from your mortgage and pay off the new cc. Get your wife to do the same, your parents, your inlaws etc. If you can find a cc with 0% balance transfer, no annual fee and no exit free it's essentially free money.
Even if you don't have a stupid of CC debt to slosh around the fee on convenience checks will likely work out to be less than your mortgage rate. OTOH if the type of loan you're discussing is what I think it is[^], it's apparently a very uncommon product in the US.
3x12=36 2x12=24 1x12=12 0x12=18
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Even if you don't have a stupid of CC debt to slosh around the fee on convenience checks will likely work out to be less than your mortgage rate. OTOH if the type of loan you're discussing is what I think it is[^], it's apparently a very uncommon product in the US.
3x12=36 2x12=24 1x12=12 0x12=18
Dan Neely wrote:
Even if you don't have a stupid of CC debt to slosh around the fee on convenience checks will likely work out to be less than your mortgage rate.
Not sure what you mean by convenience checks. Checks (Cheques) are not very common here these days.
Dan Neely wrote:
TOH if the type of loan you're discussing is what I think it is[^], it's apparently a very uncommon product in the US.
Many mortgage providers here offer what they call an offset account which is very similar to what your link describes.