Mortgage Cycling:What Is It?

monte82 profile photo

can someone give me some clearity on what mortgage cycling process involves?
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Comments(1)

  • MichaelDoherty27th August, 2004

    It involves an LOC, a credit card, and a mortgage. In order to do the process, however, you HAVE to have extra take home cash that you are willing to use to pay down your debts. You can accomplish the same thing, however, by religiously sending in extra payments to your mortgage company.

    It is advertised as a big "loophole" in the mortgage industry and that "huge lump payments" against principal are more beneficial than a smaller monthly amount. But, when you are swapping debt for debt, the "huge" lump payments don't do anything special because you still have the same amount of debt......until you send in extra payments to your mortgage company.

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