Question:

How to pay down mortgage balance with checking account?

Answer:

To pay down mortgage balance with checking account is possible for an off-set mortgage. This type of home loan product started in the UK and Australia, and is now hitting the U.S. Massachusetts and California are states where it is generally easy to locate this mortgage offer. However, though, you need to have refinanced with the bank that offers it, and your loan has to be an ARM - that is, an adjustable rate mortgage.

How does paying down mortgage loan balance with checking account work?

Offset mortgages tie the existing funds in a checking or savings account to the mortgage principal. While the funds remain deposited, they lower the loan principal balance that earns interest on it.

This program, however, can be of any significance for people with large amount of cash in a checking or savings account. For the others, it doesn't pay off at all to have your paychecks deposited and then draw cash from it.

Be careful with pay down mortgage with checking account programs.

Some banks offering those products are Wells Fargo and Salem Five. The program is usually marketed as Home Ownership Accelerator by a variety of scammers, so beware. Only approach legitimate and large loan providers, as this is a pretty new product and you can end up paying costly for it in terms of inflated interest rate.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Why: Find your next home and save money.
Link: Search thousands of foreclosures. Free 7-day trial.
Link this QnA Print del.icio.us Digg
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
 Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA:

Common misspellings: mortage and morgage