Half a croissant, on a plate, with a sign in front of it saying '50c'
h a l f b a k e r y
Poof of concept

idea: add, search, annotate, link, view, overview, recent, by name, random

meta: news, help, about, links, report a problem

account: browse anonymously, or get an account and write.

register, login


     

Flip Flop Mortgage Plan

 Reverse it if you lose your job.
  (+5, -1)
(+5, -1) 		 

If you lose your job, reverse the mortgage so your equity pays you each month. When new employment is secured, switch it back. This would save on defaults and foreclosures.

A small fee would be incurred when switching the thing around, payable when you secure new employment and get money coming in the door again.

Another possibility is to make the mortgage payments using the equity in your house.

Both ideas would add to your loan duration but I'm thinking the bank would rather have your regular monthly payment than a foreclosed house anyway.

—whatrock, Sep 21 2016





       Interesting proposal. But would people ever bother to pay off their house or simply use it as a savings account?
—RayfordSteele, Sep 22 2016
   

       This is Baked.   

       There are bank current accounts secured on property equity. Payments in diminish the outstanding balance. Interest is payable on the full amount of the loan.   

       Probably not WKTE.
—8th of 7, Sep 22 2016
   
         


 

back: main index
business  computer  culture  fashion  food  halfbakery  home  other  product  public  science  sport  vehicle