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Nesgroup address: misc.invest.real-estate - Date & Time for the message: Tue, 14 Jun 2005 16:52:51 GMT /

Author of the message: Michael Roback

Title of the message:
Using an Offst Account To Pay Down Mortgage ???

Text of the message:
> I did a refi a few months back and have a 10/1 5.25%. I have a first of about

> 650K and a second of about 50K.  I want to knock it down as quicly as possible
> so that when it hits the adjustable any fluctuation in rates will not be a
> problem.  I have been looking around the web and there are many people selling
> various versions of what I think is the same system, claiming that you could
> pay off a 30 year loan in 10 years or so.  They talk about setting up a offset
> account and putting all of your income in that account and moving money
> around.  I don't quite understand it yet and came here hoping that someone
> could help me out.  As best as I can gather what you do is find a tax free
> investment that will pay interest on your income that surpasses the rate on
> your loan and then take the interst and contribute to the loan to reduce
> principal on the loan.  They also talk about using a HELOC or Credit card



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