Tuesday, February 20, 2007

Cash Reserves Can Lower Mortgage Interest?

Well I guess I haven’t heard of anything like this before. This One Account mortgage idea states that you can pay lower interest on your mortgage by simply having a bit of a cash reserve. While having this savings in your account it offsets against your mortgage balance and in turn reduces the amount of the overall principal in which interest is charged. They even state that you can take a break from mortgage payments when money gets tight as well as pay a bit extra with out penalty.

This was something interesting that I thought I would share. Obviously I recommend that you venture over to the mortgages page on their site and read more about this. I can’t imagine you wouldn’t want to if you had a current mortgage and cash reserve anyways.

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