The Simple Dollar Morning Roundup: Deep Sleep Edition

I got a cold over Thanksgiving and all I seem to be able to do is sleep.  I clicked around for a bit and found the following interesting posts, though.
A New Way To Pay Off Your House I find this idea intriguing. In essence, what you’re doing is depositing all of your income into an account with the people who hold your mortgage, then using your home equity line of credit to make purchases. Let’s say you make $5,000 a month, for example, and your home mortgage would normally be $1,500 a month. Instead of making that payment, each month all $5,000 goes against your mortgage, then you extend the mortgage by writing checks and making cash withdrawals to pay your bills. Thus, anything you don’t spend or deposit elsewhere goes against your mortgage. It definitely could help someone pay off their mortgage quicker, but it seems pretty uncomfortable to have your money being managed in this way. (@ free money finance)

One Less Car Company To Consider I think Lazy Man is missing part of the point of the Lexus Christmas ads. Part of what Lexus sells is image, and those ads are pure image. They tie ownership of a Lexus to a level of affluence that most Americans will not be able to attain. Thus, they see a Lexus and think “Wow, that person has money,” which is part of the Lexus-owning experience. It’s not all about the car here. (@ lazy man)

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  1. kj says:

    Re ‘a new way to pay off a loan’ this should read ‘a new way not to pay off the loan’. Take it from an Aussie, they make it too easy to exceed your income and very easy to slowly increase your loan, or have it at the limit for years. The experience here is that people who do this on average take longer to pay off the loan.
    Think of it as a very big credit card with low interest. You just keep treading water mostly and not actually paying it off.

    They were heavily promoted in Australia and I know why. They are the perfect loan for the banks. Customers will have a permanent loan.

    Dont do it!!!!

    kj

  2. Jerry says:

    My way of paying off my mortgage early is simple: Half the net pay from any pay raise or bonus goes to the principle on my house. At my current rate I should have my home paid for in 36-42 months.

    Oh, as of March 24, 2009 I have NO debt other than my home. Yay me.

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