Credit Card to Pay Off Mortgage
Author: supersport
Posted: Sat Oct 08, 2005 10:27 pm
Post subject: 0% card to pay down mortgage?
Well my wife and I are in disagreement.
I've purchased a rental property for $80,000. My idea is to take out several 0% credit cards and pay off as much of this loan as I can...maybe up to $60,000. (I have a credit score of 780 and make over $100,000 a year but I don't know how many card companys will actually go along with this)
Then, in essense I will be able to pay off most of this loan at a 0% rate. Even though I'm very dilligent about paying bills, I admit this sounds pretty daring and daunting. However, if you think about it, I'm $80,000 in the hole either way...it's all in how you look at it.
My wife thinks I've lost my mind to go into a $60,000 credit card hole. She may be right, but my way I'd save almost $80,000 in interest!
Anyone with an experience like this? I'm I out of my mind?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: mouse
Posted: Sat Oct 08, 2005 10:50 pm
Post subject: Re: 0% card to pay down mortgage?
supersport wrote:
Well my wife and I are in disagreement.
I've purchased a rental property for $80,000. My idea is to take out several 0% credit cards and pay off as much of this loan as I can...maybe up to $60,000. (I have a credit score of 780 and make over $100,000 a year but I don't know how many card companys will actually go along with this)
Then, in essense I will be able to pay off most of this loan at a 0% rate. Even though I'm very dilligent about paying bills, I admit this sounds pretty daring and daunting. However, if you think about it, I'm $80,000 in the hole either way...it's all in how you look at it.
My wife thinks I've lost my mind to go into a $60,000 credit card hole. She may be right, but my way I'd save almost $80,000 in interest!
Anyone with an experience like this? I'm I out of my mind?
How long does the 0.00% last????????
6 months?????
12 months?
I would assume NOT till paid
What is the "GO-TO"
Author: supersport
Posted: Sat Oct 08, 2005 11:02 pm
Post subject: Credit Card to Pay Off Mortgage
Well I'd probably hold out for a year of 0% interest. Then I'd have to transfer the balances.
Another option I guess would be to do it in $10,000-$15,000 chunks. Although I'd be paying alot of interest on the original loan this way, I could still save some money and probably better sell the idea to my wife.
I'm just curious if anyone's tried doing this. Done right, this could be a shrewd move.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: supersport
Posted: Sat Oct 08, 2005 11:04 pm
Post subject:
[quote="supersport"]Well I'd probably hold out for a year of 0% interest. Then I'd have to transfer the balances.
(to another 0% card)
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Polonius
Posted: Sat Oct 08, 2005 11:26 pm
Post subject: Credit Card to Pay Off Mortgage
I do it all the time.
Look, you're going to owe the money either way. There's no downside in paying less interest for as long as you can. It doesn't have to be 0% offers only. Anything less than the interest you'd be paying (considering that the mortgage interest is tax-deductible, and considering how much of your time would be involved as well) will save you money.
The worst thing that can happen is that you run out of low-priced balance transfer offers. Then you can get a HELOC on your rental or just go to a long-term mortgage instead. Possibly interest rates will have soared by then so you wind up without much of an advantage in the long run, but possibly you won't run out of offers...or mortgage rates will be basically the same or go down. No one can predict rates. But if you can save one or two year's interest, why the heck not?
I have a HELOC on which I pay 6.5% today. I moved most of it to credit card balance transfers on which I'm paying about 2% overall. There are 0% offers, 1.99% offers for 9 months, 3.9% offers "until paid"--whatever I can get. Works out to about 2% for me right now. If the offers dry up, I just pay off the credit cards from the HELOC and I'm still better off for doing it this way. My own credit card debt is around $160,000.
Your credit score will take a hit if you do this, but again so what? It will rise again when you pay off the balances.
Posted: Sat Oct 08, 2005 10:27 pm
Post subject: 0% card to pay down mortgage?
Well my wife and I are in disagreement.
I've purchased a rental property for $80,000. My idea is to take out several 0% credit cards and pay off as much of this loan as I can...maybe up to $60,000. (I have a credit score of 780 and make over $100,000 a year but I don't know how many card companys will actually go along with this)
Then, in essense I will be able to pay off most of this loan at a 0% rate. Even though I'm very dilligent about paying bills, I admit this sounds pretty daring and daunting. However, if you think about it, I'm $80,000 in the hole either way...it's all in how you look at it.
My wife thinks I've lost my mind to go into a $60,000 credit card hole. She may be right, but my way I'd save almost $80,000 in interest!
Anyone with an experience like this? I'm I out of my mind?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: mouse
Posted: Sat Oct 08, 2005 10:50 pm
Post subject: Re: 0% card to pay down mortgage?
supersport wrote:
Well my wife and I are in disagreement.
I've purchased a rental property for $80,000. My idea is to take out several 0% credit cards and pay off as much of this loan as I can...maybe up to $60,000. (I have a credit score of 780 and make over $100,000 a year but I don't know how many card companys will actually go along with this)
Then, in essense I will be able to pay off most of this loan at a 0% rate. Even though I'm very dilligent about paying bills, I admit this sounds pretty daring and daunting. However, if you think about it, I'm $80,000 in the hole either way...it's all in how you look at it.
My wife thinks I've lost my mind to go into a $60,000 credit card hole. She may be right, but my way I'd save almost $80,000 in interest!
Anyone with an experience like this? I'm I out of my mind?
How long does the 0.00% last????????
6 months?????
12 months?
I would assume NOT till paid
What is the "GO-TO"
Author: supersport
Posted: Sat Oct 08, 2005 11:02 pm
Post subject: Credit Card to Pay Off Mortgage
Well I'd probably hold out for a year of 0% interest. Then I'd have to transfer the balances.
Another option I guess would be to do it in $10,000-$15,000 chunks. Although I'd be paying alot of interest on the original loan this way, I could still save some money and probably better sell the idea to my wife.
I'm just curious if anyone's tried doing this. Done right, this could be a shrewd move.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: supersport
Posted: Sat Oct 08, 2005 11:04 pm
Post subject:
[quote="supersport"]Well I'd probably hold out for a year of 0% interest. Then I'd have to transfer the balances.
(to another 0% card)
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Polonius
Posted: Sat Oct 08, 2005 11:26 pm
Post subject: Credit Card to Pay Off Mortgage
I do it all the time.
Look, you're going to owe the money either way. There's no downside in paying less interest for as long as you can. It doesn't have to be 0% offers only. Anything less than the interest you'd be paying (considering that the mortgage interest is tax-deductible, and considering how much of your time would be involved as well) will save you money.
The worst thing that can happen is that you run out of low-priced balance transfer offers. Then you can get a HELOC on your rental or just go to a long-term mortgage instead. Possibly interest rates will have soared by then so you wind up without much of an advantage in the long run, but possibly you won't run out of offers...or mortgage rates will be basically the same or go down. No one can predict rates. But if you can save one or two year's interest, why the heck not?
I have a HELOC on which I pay 6.5% today. I moved most of it to credit card balance transfers on which I'm paying about 2% overall. There are 0% offers, 1.99% offers for 9 months, 3.9% offers "until paid"--whatever I can get. Works out to about 2% for me right now. If the offers dry up, I just pay off the credit cards from the HELOC and I'm still better off for doing it this way. My own credit card debt is around $160,000.
Your credit score will take a hit if you do this, but again so what? It will rise again when you pay off the balances.
posted by CardRatings.com at 3:27 PM
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