The 4.5 is fixed until November, 2012 which is just under 3 years before I retire with full benefits, sell my home, and move to Montana to be closer to family. So I have accepted an interest rate deviation risk for the years 2012 to 2015. A risk I deemed acceptible and prudent. As far as “downpayment investment capital.” Even at today’s prices for a similar home my downpayment has appreciated in value 200+% in four years. It had appreciated as high as 300 to 350% but has since retreated. As far as “now bleeding” (drop from 350% appreciation to 200%) a home is not a stock or a bar of gold. Sure it has come down from the high but you are not suggesting that once a home market hits the top the best move (financially, socially, family, etc.) is to sell at the top, rent, and reinvest the profit into alternative better returning investments are you???? Perhaps from a purely financial rate of return perspective (i.e. if I were a hope flipper) it is technically correct. I bought my home in 4S so my family can grow up, go to school, and make friends in as ideal an environment as possible. Its not all about the money. But from a money standpoint a current appreciation of 200% (100K down on 500k price for 3100 sq/ft SFH now available for 720k to 750k) something to be “grateful” for. I guess one could HELOC the equity out and invest it in the stock market but . . . that would be foolish wouldn’t it. I sleep well at 20% and fixed until November, 2012 at 4.5%. As far as I can tell, my current cost of ownership is still below the current cost to rent. Not to mention the intangible non-financial benefits of homeownership.
