UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev | Next
Author: ed1007 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 886238  
Subject: Re: OT: FAFSA vs. E-fund Date: 10/10/2012 11:45 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
On strategy is to use all funds available on your mortgage. Home equity is not considered in the FAFSA, although some schools do consider it. This is why I currently place paying of a home above saving for college.

If you did have an emergency and had a far bit of equity in your home, you could get second or line of credit to cover the emergency.


Another way is to make prepayments, note this is not the same as prepaying principle, in that it does not save you interest as much interest, but it does move your due date for the next payment out. Thus for small hiccups you just stop paying the mortgage for a few months and use those funds to meet the emergency.

However, I am not sure that I will do either as the first option assumes that you can get a second mortgage if you need it and the second really only works if the biggest emergency you might have is equivalent to 1-2 of your mortgage payments.


As for gaming thee system. The system is what it is, following the rules laid out is hardly cheating. Giving your aunt Sally a bag of $100 to hold for you and never reporting it on the other hand....
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Saul's Investing Discussions

Why Did I Buy a Bunch of PFIE Today?
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement