- This topic has 95 replies, 11 voices, and was last updated 16 years, 8 months ago by
NotCranky.
-
AuthorPosts
-
May 26, 2008 at 3:50 PM #12852May 26, 2008 at 6:38 PM #211644
EconProf
ParticipantBobS
Undoubtedly your line of credit has been permanently reduced to the new amount.
I had two big HOLOCs with WaMu that were more than cut in half a few months ago. Both were unused at the time, but I was hoping to use them some time in the future for investments, so it was kind of a blow.
Fearing a repeat, I recently drew them both down to the max and put them into a 3% money market account in a credit union. Am paying about 6% for the HELOCs, so the net cost of keeping this liquidity is about 3%.May 26, 2008 at 6:38 PM #211716EconProf
ParticipantBobS
Undoubtedly your line of credit has been permanently reduced to the new amount.
I had two big HOLOCs with WaMu that were more than cut in half a few months ago. Both were unused at the time, but I was hoping to use them some time in the future for investments, so it was kind of a blow.
Fearing a repeat, I recently drew them both down to the max and put them into a 3% money market account in a credit union. Am paying about 6% for the HELOCs, so the net cost of keeping this liquidity is about 3%.May 26, 2008 at 6:38 PM #211743EconProf
ParticipantBobS
Undoubtedly your line of credit has been permanently reduced to the new amount.
I had two big HOLOCs with WaMu that were more than cut in half a few months ago. Both were unused at the time, but I was hoping to use them some time in the future for investments, so it was kind of a blow.
Fearing a repeat, I recently drew them both down to the max and put them into a 3% money market account in a credit union. Am paying about 6% for the HELOCs, so the net cost of keeping this liquidity is about 3%.May 26, 2008 at 6:38 PM #211765EconProf
ParticipantBobS
Undoubtedly your line of credit has been permanently reduced to the new amount.
I had two big HOLOCs with WaMu that were more than cut in half a few months ago. Both were unused at the time, but I was hoping to use them some time in the future for investments, so it was kind of a blow.
Fearing a repeat, I recently drew them both down to the max and put them into a 3% money market account in a credit union. Am paying about 6% for the HELOCs, so the net cost of keeping this liquidity is about 3%.May 26, 2008 at 6:38 PM #211797EconProf
ParticipantBobS
Undoubtedly your line of credit has been permanently reduced to the new amount.
I had two big HOLOCs with WaMu that were more than cut in half a few months ago. Both were unused at the time, but I was hoping to use them some time in the future for investments, so it was kind of a blow.
Fearing a repeat, I recently drew them both down to the max and put them into a 3% money market account in a credit union. Am paying about 6% for the HELOCs, so the net cost of keeping this liquidity is about 3%.May 26, 2008 at 8:01 PM #211684GoUSC
ParticipantBobS try again on that one big guy.
Cost of money 6%
Inflation 4%
Return (3%)So your real cost of that money is 7%. Just to have some cash on hand.
Wow. Just unbelievable.
May 26, 2008 at 8:01 PM #211756GoUSC
ParticipantBobS try again on that one big guy.
Cost of money 6%
Inflation 4%
Return (3%)So your real cost of that money is 7%. Just to have some cash on hand.
Wow. Just unbelievable.
May 26, 2008 at 8:01 PM #211783GoUSC
ParticipantBobS try again on that one big guy.
Cost of money 6%
Inflation 4%
Return (3%)So your real cost of that money is 7%. Just to have some cash on hand.
Wow. Just unbelievable.
May 26, 2008 at 8:01 PM #211805GoUSC
ParticipantBobS try again on that one big guy.
Cost of money 6%
Inflation 4%
Return (3%)So your real cost of that money is 7%. Just to have some cash on hand.
Wow. Just unbelievable.
May 26, 2008 at 8:01 PM #211837GoUSC
ParticipantBobS try again on that one big guy.
Cost of money 6%
Inflation 4%
Return (3%)So your real cost of that money is 7%. Just to have some cash on hand.
Wow. Just unbelievable.
May 26, 2008 at 9:45 PM #211843EconProf
ParticipantBobS
Uh, actually no, Radelow.
I am paying the bank 6% to rent the money.
I am investing it at 3%.
My true cost is a net of 3%.Get out a paper and pencil and do the numbers for $100,OOO for one year.
May 26, 2008 at 9:45 PM #211897EconProf
ParticipantBobS
Uh, actually no, Radelow.
I am paying the bank 6% to rent the money.
I am investing it at 3%.
My true cost is a net of 3%.Get out a paper and pencil and do the numbers for $100,OOO for one year.
May 26, 2008 at 9:45 PM #211866EconProf
ParticipantBobS
Uh, actually no, Radelow.
I am paying the bank 6% to rent the money.
I am investing it at 3%.
My true cost is a net of 3%.Get out a paper and pencil and do the numbers for $100,OOO for one year.
May 26, 2008 at 9:45 PM #211815EconProf
ParticipantBobS
Uh, actually no, Radelow.
I am paying the bank 6% to rent the money.
I am investing it at 3%.
My true cost is a net of 3%.Get out a paper and pencil and do the numbers for $100,OOO for one year.
-
AuthorPosts
- You must be logged in to reply to this topic.