Any ideas on Readvanceable Mortgage ?

tkatlin · Joined: 06 Apr 2007 Posts: 1 1.93 Dollars($)

Hey guys, I'm about to buy a new house and need to know if anyone has heard about a readvancable mortgage, (it is supposed to make the interest tax deductable).

The basic principal behind it is that you are supposed to be able to invest the money you put into the mortgage into stocks and bonds, (and make money off of the mortgage).

Anyone know anything about this? The system was supposedly invented by Fraser Smithman.

Here is where I read about it:

Code:

http://tinyurl.com/3cowgy

Guest 0.10 Dollars($)

These are more used in Canada, where borrower pays down the principal, he is then that amount readvanced so that he can invest in stock or bonds. The interest on the readvanced amount is tax deductible as it is used for investing requirements.

But the url you gave does not open ..

Samantha

Hi Tkatlin,

A readvanceable mortgage is a home loan using which a homeowner can invest the part of the loan balance paid off (through monthly payments) in stocks, bonds or any other investment.

Once the borrower pays down a certain part of the principal and monthly installments, the lender will readvance him the same amount so that he can use it for investments. The interest on the amount that is readvanced is tax-deductible as it is used for investment purposes.

Hope this helps...

God bless you.

Samantha

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