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From: Robert Longmore
I read recently an artical in the local paper, about using a credit card to lower the interest payments on a mortgage with interest calculated daily and with a no cost redraw facility. hypothetically we have a $200,000 mortgage, and a gold Amex card with a $50,000 limit, and a interest free period of 55 days.
When your monthly repayment falls due, you get a cash advance on the Amex card of $50,000, use this 50K to make the repayment, so now for the next 54 days, you are paying the interest on $150,000 and not the $200,000 and when 54 days have elapsed, you redraw the $50,000 and pay off the card. and so you continue on the cycle. but as stressed by the writer of the story, discipline in adhering to the 55 day period is a must, or cop the cost of 14% interest on 55K.
Does anybody here use this trick to lower interest on the mortgage,? can it be legally done? or is it just an idea by a journo?
I read recently an artical in the local paper, about using a credit card to lower the interest payments on a mortgage with interest calculated daily and with a no cost redraw facility. hypothetically we have a $200,000 mortgage, and a gold Amex card with a $50,000 limit, and a interest free period of 55 days.
When your monthly repayment falls due, you get a cash advance on the Amex card of $50,000, use this 50K to make the repayment, so now for the next 54 days, you are paying the interest on $150,000 and not the $200,000 and when 54 days have elapsed, you redraw the $50,000 and pay off the card. and so you continue on the cycle. but as stressed by the writer of the story, discipline in adhering to the 55 day period is a must, or cop the cost of 14% interest on 55K.
Does anybody here use this trick to lower interest on the mortgage,? can it be legally done? or is it just an idea by a journo?
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