Paul- I know that. As I said in my post, mortgage interest is included in itemized deductions, which is a deduction from income on the return. I also said that the effective interest rate is lower when considering the tax impact, not that it is a wash. And I advised him to weigh this cost against his goals, by crunching numbers, pretty much like you did.

I also advised the 15 year mortgage as a 30 year would no doubt be a waste of money on 65k. It's ultimately up to BBP- if he's getting into the house of his dreams, with only 65k in the note @15 years below 7%, and a 993 in the driveway, I think he's doing pretty well.

Finally, if BBP is for example in a 150k note right now at 8%, and he's talking about cashing in that situation for 65k/15yr/<7%, then to me it is a no-brainer.

Wel ya suur can, wy'da thinc theyz com wit wheals. But i think BigB wants a little more than this guy.

For what it's worth, a home purchased in 1958 for $12,000 that is now valued at $400,000 represents an average annual increase in value of about 8.25% (pretty average). Most people don't buy a home as an investment but as a place to live. Many homes just happen to appreciate in value, but there are roughly a dozen major metropolitan regions in the country that have not (e.g., Connecticut has areas that are still at 1989 price levels). While they may not be making any more land, in the long run nothing beats the stock market in terms of return on investment. Choose any 10-year time period since 1925 and stocks will have outperformed every other asset class (real estate, junk bonds, etc.).

Remember, it's not you that determines the value of your home, but your neighbors. Buy in the best area you can afford. It's better to have the smallest house in a great neighborhood than the biggest house in the slums.

Spending 65k on a 911 you can own outright is a much better investment than a 350k house that you can only afford the downpayment on.
All this "house dept is a better investment" is BS when the bank takes it all.

This thread *is* painful.

ROFL!!!!

Hey, I suspect Island has been there. Not a thing funny about that. Why is this subject suddenly OT? My guess is the later posts make too much sense. The old discussion... What do you really need? Beyond food, clothing, and shelter? Well, I'll be the first to admit this, but I don't "need" the latest and greatest 6 figure priced car that POR-SHA offers....

Whoops. Guess we're both guilty of reading too fast. ;)

nope, it hasn't happened to me.
What is painful about this thread is the following:

edit -Poof

Aside: dtw, I followed your lead, taking off the "@sshole hat" for this one. (believe it or not):cool:
"@sshole mode" - that was hilarious.

Brian,
You've getten em all stirred up again. Great job.

I hope you find a way to have your car and eat it too. If not, please stay around and keep the pot stirred.

Mark

ps - What's next, SC/Carerra....red????????? Come to the Duck side, Luke.

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