:)
I have more details now about this program as it applies to my family. Our monthly payment will be about $100 less that we pay now. We will pay our insurance and taxes ourselves, so we will have to budget carefully. The lender is actually offering a fixed interest rate of 6.25%. And if rates drop, we pay around $100 and can "re-fix" it anytime. The closing cost will be $1500, rolled into the line of credit.
There is an annual fee of $50. But no other costs, such as this $3500 for the software some of you are talking about.
Our line of credit will be for $119,000. (We have a small little house because I stay home with our baby.) But after just the first year, we'll have thousands more in equity than with a traditional mortgage.
I can't see why people wouldn't do this, to be honest. Well, if you're not good at budgeting carefully, it wouldn't work, I guess. You have a lot of money available anytime.
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