The Lending Club will provide you with a mortgage loan that you use also as your checking account. The loan is like an equity loan. Borrow $200,000 and each month you add your paycheck to the account. That amount is deducted from your loan. Say I get paid $4000 a month. I put that into my account and now my loan is $196,000. My loan payment is $1500, so that raises the total to $197,500. From there I also pay my regular monthly bills [ food, gas, phone, etc.]. This also raises my loan up. The idea, I believe is by putting more into the account, it reduces the loan amount and therefore reduces the interest charged. Since loans are calculated daily, this might make the long term affect to be less overall interest paid and the loan paid off sooner. Is this correct? What are the negatives about this?
2007-05-15
02:34:57
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4 answers
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asked by
steve c
1
in
Personal Finance