This is very popular right now because it lets you draw some money out of your home and improve cash flow. If you do this, resist the temptation to draw too much equity out of your home.
More Quotes from Keith Gumbinger:
If you plan to be in your house for decades, on the other hand, you might consider paying points to lock in the best long-term rates. Points, which cost one-half of a percent to 1 percent of the loan and are paid up front, let you buy a better interest rate. If you pay points up front, it's harder to get your money back, ... When rates are high, borrowers have to pay points to trim rates any way they can, but with rates so low there is really no need to pay those points.Keith Gumbinger
Welcome to the cold reality. A lot of people selected short-term interest rate product and are now beginning to see how these things benefit the lender.
Keith Gumbinger
Someone who will be out of their home within five years to seven years can save some money with an ARM. But you have to be aware of the reality that interest rates are likely to be somewhat to significantly higher in three years, five years, 10 years down the road from today.
Keith Gumbinger
The optimal thing to do is to lock in your interest rate.
Keith Gumbinger
If you're the gambling sort, you could get into an interest-only product and bet that the market will build equity for you.
Keith Gumbinger
For some people a home equity line of credit is a brand new shovel for digging themselves further into debt.
Keith Gumbinger
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