Grant Shipley gshipley at
Mon Sep 19 15:16:17 MDT 2005

On 9/19/05, Sasha Pachev <sasha at> wrote:
> I understand your reasoning. The solution for the problem is refinancing your
> regular mortgage to a home equity loan, which is what we did. With UCCU, your
> monthly payment becomes 1.2% of the principal you currently owe or $150,
> whichever is greater. If you keep the line of credit open for at least two
> years, there are absolutely no closing costs. If you close the line of credit
> earlier, they charge you $250. You can pay it off in less than 2 years, and just
> keep the line of credit open with zero balance and no interest the rest of the
> time to avoid the fee.
> You can make a payment anytime, and you can take the money back out anytime.
> This allows you to get very aggressive in paying off the mortgage - lets say you
> have been paying off extra $500/month for a year, and at the end lost your
> sources of income. You can take the extra $6000 out to live off (including
> making the mandatory payments), and actually be better off than you would have
> been had you not paid the extra - all this time you have been paying less
> interest because your principal was smaller than it would have been for the
> entire year.

This is very interesting and I would certainly like to look into it
more.  Does anyone know what the current rate is?  I currently have my
mortgage at 5.0 for a 30 year fixed.  It dropped this low for one day
and I just happened to refi that very day.  This is the lowest rate I
have heard of for a 30 year fixed without buying down points.

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