No. of Recommendations: 1
BUT, he also went on about a 2nd mortgage (a "125"; another flag) to pay off my remaining credit cards. The interest rate is fixed at 10.94% (I'm currently paying 9.9% with those remaining cards). The main advantage I can see is paying the tad bit higher rate so I can deduct the interest on my taxes.

You might want to investigate this a bit before jumping in to something like this...I do not believe you can deduct mortgage interest for loans that are in excess of the value of your home. IIRC, you can deduct the interest on the "100%" loan(s), but not on the loan that takes you from 100% LTV to 125% LTV.

Print the post  


Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.