Set it and forget it...mostly!

There is a strategy that not everyone may be aware of for setting up their Mortgage/HELOC (Home Equity Line of Credit).

The advantages:

- Flexible repayment options (ie/ small mortgage component and larger HELOC component allows for the absolute lowest payment when needed…for example, job loss/change, large short-term expense). But, when things return to normal, you can accelerate payments to maximize on interest cost savings

- A HELOC for life…once set-up, there should be no need to re-apply for a mortgage or credit…EVER!!! Of course things can happen like a falling out with your Lender, better rates elsewhere, selling your home, etc. Whatever the change, you have this as an option to go back to anytime you choose! Once this structure is implemented I’m pretty sure you will never want to change back again!

- Low interest rate borrowing…mortgage rates for mortgage component and HELOC rates for the revolving portion. Just a note…some may argue that HELOC rates are higher, so how does this make sense?? There are things you can do throughout the year that maximize on interest savings and as long as you are disciplined with your money/budget this can actually be a lower annual COST than traditional mortgage products.

- This strategy has been around and can be set up with pretty much any institution that offers mortgages and HELOC products

- This is truly a “set it and forget it” plan…regardless of Lender OR if you need/want to switch to a different lender (as long as they offer the mortgage and HELOC) this is ALWAYS an option…so you have the flexibility of the structure and choice of Lenders!!

Have fun...this really works...IF YOU ARE DISCIPLINED!!!