|
It sounds like an Option ARM (Adjustable Rate Mortgage. It could also be a
HELOC (Home Equity Line Of Credit) that is in a 1st position. Normally a
HELOC is a 2nd, but there are banks that offer them as a First. There are
some that allow -- actually, they demand -- that the borrower deposit all of
his paycheck into the mortgage account, then use HELOC checks issued against
the account to pay for day to day living expenses. This sounds odd on the
face of it, but the nuts and bolts actually make sense to the right kind of
borrower.
"Noozer" <dont.spam@me.here> wrote in message
news:XJ3bh.387640$5R2.372574@pd7urf3no...
>I had a friend describe a loan that he obtained from his bank instead of a
>regular mortgage. It sounds like the perfect thing for us, but I am not sure
>of it's official name.
>
> Basically, it's a very large, low interest line of credit. The interest
> rate floats and I could lock it in at any time.
>
> We currently have a line of credit with a large limit, several credit
> cards with high limits (paid off each month), and our mortgage (locked at
> 4.8%). We've got more than $200,000 equity in our home, much more than all
> of our current debts combined.
>
> So... When I go to the bank what do I ask for?
>
|
|
Re: What is this kind of mortgage/loan called?
