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Q: Business and Money ( No Answer,   1 Comment )
Question  
Subject: Business and Money
Category: Business and Money
Asked by: rates-ga
List Price: $10.00
Posted: 06 Sep 2006 11:39 PDT
Expires: 06 Oct 2006 11:39 PDT
Question ID: 762772
Which is the least expensive way to pay off a home with  interest rates and
number of years to pay being the same, a regular fixed rate mortgage or a
home equity loan?
Answer  
There is no answer at this time.

Comments  
Subject: Re: Business and Money
From: jack_of_few_trades-ga on 06 Sep 2006 13:21 PDT
 
Given that the interest rates are equal and the number of years are
the same, the 2 loans should have the same payoff costs.

The terms of 1 loan may be different from the other:
1) One loan may require mortgage insurance.
2) There may be fees or points associated with acquring a mortgage.
3) The home equity loan may be variable (probably not from your
wording, but potentially).
4) There may be a penalty associated with paying off one of the loans quickly.

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