take advantage of home equity line of credit

When the prime rate keeps on going down, you may think of paying part of your higher rate regular mortagage by your lower rate HELOC. This practice applies to:

- Your current regular mortagage rate (usually fixed) is higher than HELOC rate (usually float with prime rate, ask your bank), and

- Your current mortagage allows you to make extra lump sum to speedup your payment, eg max 20% of original principle every year.

You can save hundreds of bucks by doing this.

The risk: only when the prime rate shoots up, your floating HELOC rate becomes higher than your original mortagage rate. But I do not think it's gonna happen at least by the end of next year. In any case, you can practice this by only small amount for just a year or two.

Do your own math and good luck

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• 回复：take advantage of home equity line of credit -CALoanAgent- ♂ (0 bytes) () 10/26/2008 postreply 21:21:03