You may want to re-think the spring/summer time frame. Even in down markets, there is more buyer competition and higher prices during that time. If I was in your position, I would guesstimate the difference in payments you would have by waiting until next fall/winter, including likely higher interest but also possibly a substantially lower price (depending on the area). I would personally wait, even if it means paying 8%. I don’t want to get into a spring bidding war on top of already inflated prices.

You may want to re-think the spring/summer time frame. Even in down markets, there is more buyer competition and higher prices during that time. If I was in your position, I would guesstimate the difference in payments you would have by waiting until next fall/winter, including likely higher interest but also possibly a substantially lower price (depending on the area). I would personally wait, even if it means paying 8%. I don’t want to get into a spring bidding war on top of already inflated prices.

Some time ago I had a similar idea of providing cash to a lender as collateral to lend back to me. Although I didn’t need a mortgage, I wanted the interest as a deductible. The bank thought it was a wonderful idea, but of course in those days they were falling over backwards to lend under any terms. I think if I’d said my income is derived from selling rocks from Mars, once I’ve built my space ship, they would have giggled delightedly and said “why of course you can have a loan”. Seriously though there are better qualified people here than me on how to structure a loan, and I echo above that you may want to wait a little longer.

Some time ago I had a similar idea of providing cash to a lender as collateral to lend back to me. Although I didn’t need a mortgage, I wanted the interest as a deductible. The bank thought it was a wonderful idea, but of course in those days they were falling over backwards to lend under any terms. I think if I’d said my income is derived from selling rocks from Mars, once I’ve built my space ship, they would have giggled delightedly and said “why of course you can have a loan”. Seriously though there are better qualified people here than me on how to structure a loan, and I echo above that you may want to wait a little longer.

Some time ago I had a similar idea of providing cash to a lender as collateral to lend back to me. Although I didn’t need a mortgage, I wanted the interest as a deductible. The bank thought it was a wonderful idea, but of course in those days they were falling over backwards to lend under any terms. I think if I’d said my income is derived from selling rocks from Mars, once I’ve built my space ship, they would have giggled delightedly and said “why of course you can have a loan”. Seriously though there are better qualified people here than me on how to structure a loan, and I echo above that you may want to wait a little longer.

Omega that is an interesting strategy and I have been pondering about whether to pursue a similar plan when I buy as well. I watched my parents invest alot of money in bonds in the 80s. Every few months they would put as much in as they could to purchase 30 year bonds and those were fantastic income generators for them. So your strategy makes alot of sense in an environment where you sense double digit inflation rates in the future.

By the same token, putting a buku downpayment and paying off the home early is not bad because of all the money you save in not paying any interest. One simply needs to plot the data to see what works better for them.

Anyways, not a bad idea.

Omega that is an interesting strategy and I have been pondering about whether to pursue a similar plan when I buy as well. I watched my parents invest alot of money in bonds in the 80s. Every few months they would put as much in as they could to purchase 30 year bonds and those were fantastic income generators for them. So your strategy makes alot of sense in an environment where you sense double digit inflation rates in the future.

By the same token, putting a buku downpayment and paying off the home early is not bad because of all the money you save in not paying any interest. One simply needs to plot the data to see what works better for them.

Anyways, not a bad idea.