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The savings would be something around 1000-1400 vs making an extra 5400 payment a month if the credit card didn’t charge anything to take the draw down.
Instead of using money from other investments to use this, I am wondering if it is possible to
get first 12/first 18 months (introductory) 0% APR credit cards to borrow cash and use that to pay off the mortgage.
I'm aware of 0% balance transfer offers, but the ones I've seen come with a transfer fee of 3% of the amount transferred. So I think you should double-check that.
Also, I don't think there is any possibility that you will get 1 credit card for $65k, most likely you will need 5 or more to get that kind of money. And I think you will not be successful to be approved for 5 new credit cards in a short period of time.
I see what you are trying to do, but you still not debt free free, you still paying another debt which is the credit card you cashed out from. Realistically debt free to me mean -- aside from paying food, usual personal items, utilities, and house taxes, I should not be paying anything else to live.
Did you take your tax deduction for mortgage interest into account in thinking about this? Is that reflected in your total monthly savings?
Based on my tax returns last 5 years, I am not getting any tax deduction for mortgage interest savings. So I dont think it comes into the mixture for the savings.
Sounds like a good way to complicate what should be a simple transaction. Pay down the mortgage to the 65,000 and then make extra payments until paid off. Less stress and no complications.
The more moving parts in a plan, the more ways for it to go wrong.
Why wouldn't you just send extra money in your mortgage payment instead? I kinda get that you would like to take advantage of potential rewards points on the credit card but if they charge you 3%, it's not really worth it.
prepaying the mortgage gives you the flexibility of just not paying extra if you have an emergency or lose your job.
when we were still a 2 income family, I was sending extra payments every month and managed to reduce my mortgage by roughly $10k before her company started experiencing trouble and she took an early separation package.
Why wouldn't you just send extra money in your mortgage payment instead? I kinda get that you would like to take advantage of potential rewards points on the credit card but if they charge you 3%, it's not really worth it.
prepaying the mortgage gives you the flexibility of just not paying extra if you have an emergency or lose your job.
when we were still a 2 income family, I was sending extra payments every month and managed to reduce my mortgage by roughly $10k before her company started experiencing trouble and she took an early separation package.
There’s no rewards points potential here. The savings comes down to roughly 1000-1500 at best if the credit card company or companies doesn’t charge a fee on the transactions.
Also a great point already made above, if you don’t already have availability on all your cards to draw this much cash @ 0% it’s not going to be easy to start now and get approved for that much
Simply pre-paying your mortgage will accomplish the same thing, without adding another layer of debt on top of your mortgage. This will give you more payment and money/asset management flexibility.
Another layer of CC debt will not change the terms of your underlying mortgage, but, can negatively affect your credit rating, limit your ability to borrow further if you actually need it and leave you in jeopardy of higher CC payments if everything doesn't work according to plan.
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