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| Joined TALKCalgary: | Sun Aug 20th, 2006 |
| Location: | Calgary, Alberta Canada |
| Posts: | 210 |
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The Banks offer what is called the HELOC, Home Equity Line of Credit the normal person takes advantage of this and uses the extra cash to take a vacation, revovate their house etc, which keeps them in perpetual debt. Does this sound like something that a financial institution should be doing to it's clientelle? Because the HELOC allows you to separate your interest payments and principle payments you are only required to pay the interest freeing up the principle payments. If you invest those other payments over the long haul becasue of compound interest you'll have some good coin saved up and be able to pay your house off sooner and still have cash in the bank.
Hate to jump in to the fray here, but I have a question about this, or rather I hope you will clarify what you are saying.
So as an example, say I have this line of credit with my bank. I use 4000 dollars to buy something for my house.
I then pay back my line of credit, interest only each month and take the money that I would have paid back in principal and invest it with your company?
By doing this I get some 'great' interest rate that will more than offset the interest I am going to be paying to the bank at say 8.25%?
Is that the idea?
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