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Question for the Money Doctors

Question submitted on Oct 18, 2011.

Question

We have 8 years left on our mortgage which is a fixed at 5% and have a home equity line, if we get a gift of funds that would be enough to pay off the balance would it make sense to pay it off, even though we are concerned about future income levels?

Answer

First who knows if you even really have a legally enforceable mortgage!!! As a result of improper chain or receipt, improper endorsements, false signatures, improper notarization, the destruction of the original "blue ink signature note", etc. the mortgage you are paying might be an unnecessary payment!!! As bizzare as this sounds start doing research (even via the internet ....MERS (Mortgage Elecrtronic Registration System..court rulings, etc.,).

Even if you don't have a MERS error it is likely that the bank destroyed your original blue ink signature note making the entire mortgage invalid and uncollectable.

Personally, I would keep the "gift". After all you can repay it at any time YOU wish. Or pay it off, save the interest and use the line of credit in the event of an emergency.

The rate seems reasonable but shop around for a no cost line that you can replace this one with.


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