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"Noozer" <dont.spam@me.here> wrote
> What is this kind of mortgage/loan called?
> So... When I go to the bank what do I ask for?
I normally never wish to be a smart aleck,
but to above question I am tempted to answer,
"A teaser, to get you off your current wonderful mortgage!"
> 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.
You are doing very well.
The overall economy is doing well.
But economic cycles (despite many who would wish so)
haven't been repealed.
If I'm near correct in understanding you have a 15, 20, 25, or 30
year fixed mortgage at 4.8%, I'd definitely keep it.
I'll not try to post predicting when, but I am confident that
at some time of that loan, interest rates will noticably rise.
So in that regard, I agree with Venus.
(Let us all hope we never see 18% mortgage rates again!
Those were kinda grim times. But likely to see up to 10%.)
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Re: What is this kind of mortgage/loan called?
