DAD: ...and that's is how "points" are defined in the mortgage industry. Now, the difference between a home equity loan and an equity line of credit is...
Actually...a point is 1% of your loan amount. By paying points, you can lower your interest rate temporarily or over the life of your loan. Home equity lines are defined as open, revolving lines of credit. Much like a credit card, your monthly minimum payment depends on the balance you carry. See your tax advisor for interest deductability information. An equity loan is a fixed rate loan where a portion of you monthly payment goes towards principle and a portion goes to interest. A typical equity loan has a payback term of 15 years. Please try to stay awake next time.
Well, everyone in DC has a blog, don't they? So shouldn't someone named "Reagan" have one too?
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3 comments:
O, what a beautiful picture it is!
Actually...a point is 1% of your loan amount. By paying points, you can lower your interest rate temporarily or over the life of your loan.
Home equity lines are defined as open, revolving lines of credit. Much like a credit card, your monthly minimum payment depends on the balance you carry. See your tax advisor for interest deductability information. An equity loan is a fixed rate loan where a portion of you monthly payment goes towards principle and a portion goes to interest. A typical equity loan has a payback term of 15 years.
Please try to stay awake next time.
You sleep like a leopard sleeping in a strong tree.
Please wake up and ask your father, "What?"
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