Financing a property using a credit card

I came across an article called, “Do it yourself refinancing” from i bought a duplex (!)

The article talks about what she did when her HELOC rate kept climbing with balance transfer checks and a low 2.99% interest credit card.

Here is an excerpt from her article:

…However, short term rates quickly started to jump upwards, and within 9 months or so I found my HELOC rate pushing 9% ” my monthly payments had doubled, and I wasn’t even paying off any of the balance on the HELOC! I looked into refinancing everything (again), but long-term rates weren’t really good enough to justify that, given the expense of closing costs, etc…

…Then, one day when I was paying my credit card bill online, I had an idea¦.

…One of my credit cards had recently sent me some balance transfer checks in the mail, which I could use for cash, write as normal checks, or use for paying off other credit cards. I had a generous credit line on this card (and no current balance) which meant that I could write one of these checks for up to $25,000. There was a fee for writing the checks, but only of 3% (capped at $75 ” only 0.3% of the full $25,000). They weren’t offering a low promotional rate on these checks, however, I also received another credit card offer in the mail from another card ” 2.99% on balance transfers for the life of the balance (also no current balance on this card, and a credit line of $30,000). The wheels were turning¦

…I wrote one of the balance transfer/cash advance checks out to myself, in the amount of $25,000, and deposited it into my checking account…and then logged into my account for the other card ” and transferred the $25,000 balance, on the low 2.99% rate for the life of the balance. There was also a 3% fee for this transaction, but it was capped at $60, which is only 0.2% of the full $25,000.

So, I refinanced my 9% variable rate HELOC to 2.99% (fixed) for $135…

Read the entire article at Do it yourself refinancing.

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My blog about living life to the fullest by generating passive income through real estate, business and online investments.
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