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