Interest rates plummet – licking my wounds….

[ocrenter]

[quote=teaboy]this just re-validates my opinion that points are a rip-off. Dont buy ’em.

tb[/quote]

well, depends. when we refi’d nearly a year ago, we purchased 0.5 point, which amounted to about $2000. that’s the difference of 3.5 months between the old payment and the new payment.

now that the jr jumbo rate is at 4.5% at 0 point, I’m glad I paid that 0.5 point nearly a year ago to bring my rate down to 4.5%.

[ocrenter]

[quote=flu]Someone talk some sense into me.

I’m actually giving some serious consideration to changing my strategy and instead of trying to pay off my primary earlier with a 15, refinance back into a 30 year and take as much cash out as possible..then take the money and do something with it. Like use it to buy cheaper/paid off rental property.

Afterall, if we think the dollar is getting weaker, is there any good reason why I should try to pay this off in today’s dollar sooner, versus using less-worth dollars in the future??? I mean at least if I have some rentals, I can jack up rent (to a point) to keep up with inflation.. Also, since the refinance is on my primary, my interest is deductible up to the phase out limit… On the other hand, if I tie up too much equity now, that’s money that’s lost opportunity which will devalue because I can’t do anything with it….Seems like a big opportunity cost… (other than I just wasted the past 6 years paying down a loan )

Thoughts? Someone talk some sense into me, please…[/quote]

that actually make a lot of sense. why pay down at accelerated scale with money that is worth more when you know if you pay at a slower scale you’ll be able to pay with money that’s worth less.

ask anyone with professional school loans (med, law, mba, etc). these guys get low interest loans for their education, loans with interest rate even lower than CD rates. none of them ever pay down the loans early.

get an investment property, near an UC campus.

[ocrenter]

[quote=flu]Someone talk some sense into me.

I’m actually giving some serious consideration to changing my strategy and instead of trying to pay off my primary earlier with a 15, refinance back into a 30 year and take as much cash out as possible..then take the money and do something with it. Like use it to buy cheaper/paid off rental property.

Afterall, if we think the dollar is getting weaker, is there any good reason why I should try to pay this off in today’s dollar sooner, versus using less-worth dollars in the future??? I mean at least if I have some rentals, I can jack up rent (to a point) to keep up with inflation.. Also, since the refinance is on my primary, my interest is deductible up to the phase out limit… On the other hand, if I tie up too much equity now, that’s money that’s lost opportunity which will devalue because I can’t do anything with it….Seems like a big opportunity cost… (other than I just wasted the past 6 years paying down a loan )

Thoughts? Someone talk some sense into me, please…[/quote]

that actually make a lot of sense. why pay down at accelerated scale with money that is worth more when you know if you pay at a slower scale you’ll be able to pay with money that’s worth less.

ask anyone with professional school loans (med, law, mba, etc). these guys get low interest loans for their education, loans with interest rate even lower than CD rates. none of them ever pay down the loans early.

get an investment property, near an UC campus.

[ocrenter]

[quote=flu]Someone talk some sense into me.

I’m actually giving some serious consideration to changing my strategy and instead of trying to pay off my primary earlier with a 15, refinance back into a 30 year and take as much cash out as possible..then take the money and do something with it. Like use it to buy cheaper/paid off rental property.

Afterall, if we think the dollar is getting weaker, is there any good reason why I should try to pay this off in today’s dollar sooner, versus using less-worth dollars in the future??? I mean at least if I have some rentals, I can jack up rent (to a point) to keep up with inflation.. Also, since the refinance is on my primary, my interest is deductible up to the phase out limit… On the other hand, if I tie up too much equity now, that’s money that’s lost opportunity which will devalue because I can’t do anything with it….Seems like a big opportunity cost… (other than I just wasted the past 6 years paying down a loan )

Thoughts? Someone talk some sense into me, please…[/quote]

that actually make a lot of sense. why pay down at accelerated scale with money that is worth more when you know if you pay at a slower scale you’ll be able to pay with money that’s worth less.

ask anyone with professional school loans (med, law, mba, etc). these guys get low interest loans for their education, loans with interest rate even lower than CD rates. none of them ever pay down the loans early.

get an investment property, near an UC campus.

[ocrenter]

[quote=flu]Someone talk some sense into me.

I’m actually giving some serious consideration to changing my strategy and instead of trying to pay off my primary earlier with a 15, refinance back into a 30 year and take as much cash out as possible..then take the money and do something with it. Like use it to buy cheaper/paid off rental property.

Afterall, if we think the dollar is getting weaker, is there any good reason why I should try to pay this off in today’s dollar sooner, versus using less-worth dollars in the future??? I mean at least if I have some rentals, I can jack up rent (to a point) to keep up with inflation.. Also, since the refinance is on my primary, my interest is deductible up to the phase out limit… On the other hand, if I tie up too much equity now, that’s money that’s lost opportunity which will devalue because I can’t do anything with it….Seems like a big opportunity cost… (other than I just wasted the past 6 years paying down a loan )

Thoughts? Someone talk some sense into me, please…[/quote]

that actually make a lot of sense. why pay down at accelerated scale with money that is worth more when you know if you pay at a slower scale you’ll be able to pay with money that’s worth less.

ask anyone with professional school loans (med, law, mba, etc). these guys get low interest loans for their education, loans with interest rate even lower than CD rates. none of them ever pay down the loans early.

get an investment property, near an UC campus.

[ocrenter]

[quote=flu]Someone talk some sense into me.

I’m actually giving some serious consideration to changing my strategy and instead of trying to pay off my primary earlier with a 15, refinance back into a 30 year and take as much cash out as possible..then take the money and do something with it. Like use it to buy cheaper/paid off rental property.

Afterall, if we think the dollar is getting weaker, is there any good reason why I should try to pay this off in today’s dollar sooner, versus using less-worth dollars in the future??? I mean at least if I have some rentals, I can jack up rent (to a point) to keep up with inflation.. Also, since the refinance is on my primary, my interest is deductible up to the phase out limit… On the other hand, if I tie up too much equity now, that’s money that’s lost opportunity which will devalue because I can’t do anything with it….Seems like a big opportunity cost… (other than I just wasted the past 6 years paying down a loan )

Thoughts? Someone talk some sense into me, please…[/quote]

that actually make a lot of sense. why pay down at accelerated scale with money that is worth more when you know if you pay at a slower scale you’ll be able to pay with money that’s worth less.

ask anyone with professional school loans (med, law, mba, etc). these guys get low interest loans for their education, loans with interest rate even lower than CD rates. none of them ever pay down the loans early.

get an investment property, near an UC campus.

[Anonymous]

[quote=carlsbadworker]But obviously, you guys are too obsessed with your anger for the FED to notice that. I think FED is the only rational central bank at the moment to keep its focus on fighting the deflation.[/quote]

Of course we are all angry with the FED. They’ve been destroying the US economy since 1913!

[Anonymous]

[quote=carlsbadworker]But obviously, you guys are too obsessed with your anger for the FED to notice that. I think FED is the only rational central bank at the moment to keep its focus on fighting the deflation.[/quote]

Of course we are all angry with the FED. They’ve been destroying the US economy since 1913!

[Anonymous]

[quote=carlsbadworker]But obviously, you guys are too obsessed with your anger for the FED to notice that. I think FED is the only rational central bank at the moment to keep its focus on fighting the deflation.[/quote]

Of course we are all angry with the FED. They’ve been destroying the US economy since 1913!

[Anonymous]

[quote=carlsbadworker]But obviously, you guys are too obsessed with your anger for the FED to notice that. I think FED is the only rational central bank at the moment to keep its focus on fighting the deflation.[/quote]

Of course we are all angry with the FED. They’ve been destroying the US economy since 1913!

[Anonymous]

[quote=carlsbadworker]But obviously, you guys are too obsessed with your anger for the FED to notice that. I think FED is the only rational central bank at the moment to keep its focus on fighting the deflation.[/quote]

Of course we are all angry with the FED. They’ve been destroying the US economy since 1913!

[(former)FormerSanDiegan]

[quote=pri_dk][quote=carlsbadworker]But obviously, you guys are too obsessed with your anger for the FED to notice that. I think FED is the only rational central bank at the moment to keep its focus on fighting the deflation.[/quote]

Of course we are all angry with the FED. They’ve been destroying the US economy since 1913![/quote]

Since 1913. Really ?

In 1900 the US economy was about 16% of world GDP.
Currently the US economy is about 22% of world GDP [1].

I wish they could destroy more things as effectively.

[1]
http://visualizingeconomics.com/2008/01/20/share-of-world-gdp/

[(former)FormerSanDiegan]

[quote=pri_dk][quote=carlsbadworker]But obviously, you guys are too obsessed with your anger for the FED to notice that. I think FED is the only rational central bank at the moment to keep its focus on fighting the deflation.[/quote]

Of course we are all angry with the FED. They’ve been destroying the US economy since 1913![/quote]

Since 1913. Really ?

In 1900 the US economy was about 16% of world GDP.
Currently the US economy is about 22% of world GDP [1].

I wish they could destroy more things as effectively.

[1]
http://visualizingeconomics.com/2008/01/20/share-of-world-gdp/

[(former)FormerSanDiegan]

[quote=pri_dk][quote=carlsbadworker]But obviously, you guys are too obsessed with your anger for the FED to notice that. I think FED is the only rational central bank at the moment to keep its focus on fighting the deflation.[/quote]

Of course we are all angry with the FED. They’ve been destroying the US economy since 1913![/quote]

Since 1913. Really ?

In 1900 the US economy was about 16% of world GDP.
Currently the US economy is about 22% of world GDP [1].

I wish they could destroy more things as effectively.

[1]
http://visualizingeconomics.com/2008/01/20/share-of-world-gdp/

[(former)FormerSanDiegan]

[quote=pri_dk][quote=carlsbadworker]But obviously, you guys are too obsessed with your anger for the FED to notice that. I think FED is the only rational central bank at the moment to keep its focus on fighting the deflation.[/quote]

Of course we are all angry with the FED. They’ve been destroying the US economy since 1913![/quote]

Since 1913. Really ?

In 1900 the US economy was about 16% of world GDP.
Currently the US economy is about 22% of world GDP [1].

I wish they could destroy more things as effectively.

[1]
http://visualizingeconomics.com/2008/01/20/share-of-world-gdp/

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