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What’s the big difference between a mortgage and a line of credit? How can you possibly pay off a mortgage faster or replace it with a line of credit? Mortgages use compounding interest. Most of the interest is paid up front (so you can’t make much progress on your principal balance). A line of credit uses simple interest. Anything beyond the monthly interest payment goes straight to principal.Lines of credit help you skip the amortization table, which is just a fancy looking spreadsheet demandi
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