Filed under: Borrowing, Home, Mortgages

Someone recently sent WalletPop a press release detailing what claimed to be one of those "eliminate your debt" strategies.

This one hinges on something called a "mortgage checking account." It's similar to a mortgage elimination scheme that proliferated in Australia a few years back and hopped onto our shores under a different name.

In this 2007 article, the Boston Globe explored what was then being called a "line-of-credit" mortgage and concluded that the scheme was more about marketing than merit.

The plan pitched to us by a company called MoneyDesktop purports to let you pay off your mortgage via a home equity line of credit (HELOC). In theory, you take out a home equity line of credit, deposit your paychecks into that line of credit instead of a checking account, and write a check paying down your mortgage in the amount you've just deposited.

Continue reading Mortgage payoff pitch is no panacea

Mortgage payoff pitch is no panacea originally appeared on WalletPop Blog on Mon, 14 Dec 2009 16:30:00 EST. Please see our terms for use of feeds.

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