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Originally Posted by tabs
Maybe a good idea is to refi..at a much lower rate...then take the difference in payment and buy HIgh Grade Corporate Bonds that pay a higher rate of return then the interest you are paying on the loan.
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That is a good option. Corporate stuff is returning ridiculous yields right now. I'm being greedy and looking for the equity position gain too.
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Originally Posted by tabs
You still have your liquidity, tax write off
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Agree.
Quote:
Originally Posted by tabs
Also go for the longer term loan...so that your payment is the lowest it can be. Then start making an extra principle payment on your own every month. That way you screw with the amortization tables, and will pay off the loan in a shorter amount of time. That way you have the best of both worlds...a low payment if needed and shorter life of loan...
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I also agree with this. i dont think the spread between 15 and 30 year mortgages is that much.
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Originally Posted by 911Rob
sorry einreb but that's backwards main stream thinking. Dont do it.
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mainstream is to pull equity and buy a hummer (either kind). Im talking leveraging a bit to buy into high yielding blue chips.
Quote:
Originally Posted by 911Rob
The only people who should have a 25 or 30 year mortgage are the ones that are "just" getting into real estate and they can't qualify for the loan any other way than to take advantage of the lower monthly payment offered with these terms.
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I would argue that it can be treated as an asset allocation later in life. Is it proper to tie up your entire net worth in your home?
Quote:
Originally Posted by 911Rob
Start with a 15 year amortization and then go from there. How old will you be in 15 years? A few extra payments here and there and you can have that sucker paid off in 10 years. In 10 years the home will have appreciated too. You will be the KING of your castle!
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Again, not sure it the spread is worth it. The payment flexibility is nice on a 30 year vs 15... especially if you keep some focus on making extra payments.
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Originally Posted by 911Rob
Focus on the goal..... no mortgage in 10 years. SWEET!
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I could sell equities in this down market and do that now. I dont think thats a good move, do you? maybe you're right... dunno.
Quote:
Originally Posted by 911Rob
From that point forward, you will have no mortgage on your home. If you want to do some investing, you can use a LOC; but only invest in things that pay huge dividends; like double your money.
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Where do I send the check?
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Originally Posted by 911Rob
Go talk to someone who is in the position YOU want to be in AND no one else! Share this with your wife and see how excited she gets!  |
There's a joke in there somewhere.