You initial question asked about refinancing to a HIGHER rate. You deserve every comment on here
[img]http://www.unicron.us/tf1985/cartoon/dinobots2.jpg[/img]
terradactylexpress said:
You initial question asked about refinancing to a HIGHER rate. You deserve every comment on here
All of the other comments to choose from, and I'm the one who gets called a jackwagon. Did I accidentally run over your pet squirrel on the way to work this morning?rlb28 said:What a jackwagon. Message board question and answers help a lot of people. Who are you anyway? It's great that someone who truly doesn't understand something had the nads to ask. Unfortunately, you showed up on the thread. Not everyone is all-knowing like yourself.94chem said:
I can't believe someone would refi over 0.25 points or less. Others have answered your question, but you need to really understand what a bad question it was. It shows a surprising lack of financial literacy.
Next, rather than paying off early, why don't you put that money toward something productive? Do you have 529 funds? Have you ever been to Hawaii?
BBDP said:
There is no such thing as good debt when you get laid off and don't have enough emergency fund.
Liquidating assets during a down turn (when most get laid off) is typically bad timing.
Having a paid for house provides additional security which has value.
BBDP said:
Would you do a 40 year note?
BBDP said:
There is no such thing as good debt when you get laid off and don't have enough emergency fund.
Liquidating assets during a down turn (when most get laid off) is typically bad timing.
Having a paid for house provides additional security which has value.
There absolutely is.BBDP said:
There is no such thing as good debt when you get laid off and don't have enough emergency fund.
Liquidating assets during a down turn (when most get laid off) is typically bad timing.
Having a paid for house provides additional security which has value.
This isn't close to right. Sometimes wealthy people pay off their mortgage early and I regularly advise it when factors cause debt retirement to be prioritized over optimizing further wealth accumulation. But to categorize it as the majority act that way, much less the "vast majority" is framing the issue poorly.BBDP said:
The vast majority of "wealthy" people pay off their homes way before 50.
If you have a 30 year investment horizon, the S&P 500 is pretty close to a guarantee to give you at least 8%...aggiepaintrain said:
where can I get 7% a year guaranteed?
please sign me up
Quote:
Lifestyle creep catches up with most people and when they see the extra money in their bank account
BBDP said:
You are correct......
But risk is always ignored in these scenarios but eliminating it has value.... hence we buy insurance.
If you want to ignore risk; once your home is paid off, drop your insurance an invest that too. That money you have at 7% is at risk.. what happens if it only get 3% the 1st 15 years (look at the markets between 1999-2014). Who ended up better then... I took out my 1st mortgage in 2001.
And that response was to the quote that Mortgage dept was "good" dept.
CC dept is unsecured... interest rates are horrible but they cant come and take you Taco Bell back.
BBDP said:
The vast majority of "wealthy" people pay off their homes way before 50. There are a lot of factors there but it's true.
Stive said:BBDP said:
The vast majority of "wealthy" people pay off their homes way before 50. There are a lot of factors there but it's true.
Um.....who told you that?!?!
The misinformation in this thread posted as fact is staggering!jja79 said:
If they're doing that their strategy is to pay a rate above market. The loan becomes an A-6 in Texas and typically is 0.25% over market.
Our bank has +/-650 custom homes currently under construction for which we're providing financing. Average loan size is $800K so maybe not top 1% of 1% but probably above average. I've never had anyone come to me to cash out new construction.
In my experience $1MM mortgage clients ask two questions. What is the minimum down payment? How long can I finance this? They believe in leverage.
It's typical those borrowing for construction have a paid for site which satisfies their equity requirement.