Quote:
Originally Posted by simmer2
I qualified for an LOC just fine. And I find that stat hard to believe that he's doing LOC's 4:1 over mortgages. With people's spending habits, I firmly believe that the LOC is more of a detriment than a help to most people.
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I would ask if that 4 to 1 ratio was on 1st mortgages. For example, I just did a LOC/2nd mortgage with TD @ prime (right now 6.25%) because the g'friend has had some credit card debts, so we consolidated.
In the main point, I would definitely say that the mortgage is the way to go, but to try and get as many options as possible for quick repayment, so that if you have the extra $ you can put it on. Most people don't seem to realize that most mortgages have the option to double your payments, or to put a lump sum on once a year. Make sure what your options on this are, expand them if possible, and you get the flexibility of a LOC to some degree with the lower interest of a mortgage.