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December 5, 2008 at 4:18 PM #312526December 5, 2008 at 4:31 PM #312053
Raybyrnes
ParticipantPaying points is really about how you identify and measure risk. By paying points now I guaranty myself a lower cost relative to todays circumstances.
By not paying points I have the added liquidity of cash in hand and the potential opportunity of making a far greater return than the tax deductible interest I am paying for the loan.
To say no one is going to get the lowest possible rate is wrong. There are very few people but there are always a handful of people who know how to wiggle the system.
December 5, 2008 at 4:31 PM #312410Raybyrnes
ParticipantPaying points is really about how you identify and measure risk. By paying points now I guaranty myself a lower cost relative to todays circumstances.
By not paying points I have the added liquidity of cash in hand and the potential opportunity of making a far greater return than the tax deductible interest I am paying for the loan.
To say no one is going to get the lowest possible rate is wrong. There are very few people but there are always a handful of people who know how to wiggle the system.
December 5, 2008 at 4:31 PM #312442Raybyrnes
ParticipantPaying points is really about how you identify and measure risk. By paying points now I guaranty myself a lower cost relative to todays circumstances.
By not paying points I have the added liquidity of cash in hand and the potential opportunity of making a far greater return than the tax deductible interest I am paying for the loan.
To say no one is going to get the lowest possible rate is wrong. There are very few people but there are always a handful of people who know how to wiggle the system.
December 5, 2008 at 4:31 PM #312464Raybyrnes
ParticipantPaying points is really about how you identify and measure risk. By paying points now I guaranty myself a lower cost relative to todays circumstances.
By not paying points I have the added liquidity of cash in hand and the potential opportunity of making a far greater return than the tax deductible interest I am paying for the loan.
To say no one is going to get the lowest possible rate is wrong. There are very few people but there are always a handful of people who know how to wiggle the system.
December 5, 2008 at 4:31 PM #312531Raybyrnes
ParticipantPaying points is really about how you identify and measure risk. By paying points now I guaranty myself a lower cost relative to todays circumstances.
By not paying points I have the added liquidity of cash in hand and the potential opportunity of making a far greater return than the tax deductible interest I am paying for the loan.
To say no one is going to get the lowest possible rate is wrong. There are very few people but there are always a handful of people who know how to wiggle the system.
December 5, 2008 at 4:35 PM #312063cooperthedog
Participant[quote=asianautica] Pay a few thousands up front will save you tens of thousands over the life of the loan.[/quote]
True, but the opportunity cost of the few thousand also must be taken into account.
If your rate of return is higher from investing the buydown money, then you will “save” less over the life of the loan vs. investing it.
With rates at 5%, do you expect your investments to return more or less then that over the next 30 years? Another way to look at it is; would you be willing to invest in a 30 year bond at 5%, or would you be worried about future inflation or better returns from different asset classes?
I’m of the opinion that with fixed rates this low, I want to use as much of other peoples money as possible.
December 5, 2008 at 4:35 PM #312420cooperthedog
Participant[quote=asianautica] Pay a few thousands up front will save you tens of thousands over the life of the loan.[/quote]
True, but the opportunity cost of the few thousand also must be taken into account.
If your rate of return is higher from investing the buydown money, then you will “save” less over the life of the loan vs. investing it.
With rates at 5%, do you expect your investments to return more or less then that over the next 30 years? Another way to look at it is; would you be willing to invest in a 30 year bond at 5%, or would you be worried about future inflation or better returns from different asset classes?
I’m of the opinion that with fixed rates this low, I want to use as much of other peoples money as possible.
December 5, 2008 at 4:35 PM #312452cooperthedog
Participant[quote=asianautica] Pay a few thousands up front will save you tens of thousands over the life of the loan.[/quote]
True, but the opportunity cost of the few thousand also must be taken into account.
If your rate of return is higher from investing the buydown money, then you will “save” less over the life of the loan vs. investing it.
With rates at 5%, do you expect your investments to return more or less then that over the next 30 years? Another way to look at it is; would you be willing to invest in a 30 year bond at 5%, or would you be worried about future inflation or better returns from different asset classes?
I’m of the opinion that with fixed rates this low, I want to use as much of other peoples money as possible.
December 5, 2008 at 4:35 PM #312474cooperthedog
Participant[quote=asianautica] Pay a few thousands up front will save you tens of thousands over the life of the loan.[/quote]
True, but the opportunity cost of the few thousand also must be taken into account.
If your rate of return is higher from investing the buydown money, then you will “save” less over the life of the loan vs. investing it.
With rates at 5%, do you expect your investments to return more or less then that over the next 30 years? Another way to look at it is; would you be willing to invest in a 30 year bond at 5%, or would you be worried about future inflation or better returns from different asset classes?
I’m of the opinion that with fixed rates this low, I want to use as much of other peoples money as possible.
December 5, 2008 at 4:35 PM #312541cooperthedog
Participant[quote=asianautica] Pay a few thousands up front will save you tens of thousands over the life of the loan.[/quote]
True, but the opportunity cost of the few thousand also must be taken into account.
If your rate of return is higher from investing the buydown money, then you will “save” less over the life of the loan vs. investing it.
With rates at 5%, do you expect your investments to return more or less then that over the next 30 years? Another way to look at it is; would you be willing to invest in a 30 year bond at 5%, or would you be worried about future inflation or better returns from different asset classes?
I’m of the opinion that with fixed rates this low, I want to use as much of other peoples money as possible.
December 5, 2008 at 4:38 PM #312073MadeInTaiwan
Participant[quote=cooperthedog][quote=asianautica] Pay a few thousands up front will save you tens of thousands over the life of the loan.[/quote]
True, but the opportunity cost of the few thousand also must be taken into account.
If your rate of return is higher from investing the buydown money, then you will “save” less over the life of the loan vs. investing it.
With rates at 5%, do you expect your investments to return more or less then that over the next 30 years? Another way to look at it is; would you be willing to invest in a 30 year bond at 5%, or would you be worried about future inflation or better returns from different asset classes?
I’m of the opinion that with fixed rates this low, I want to use as much of other peoples money as possible. [/quote]
Good point, specially if you suspect in the mid future inflation will be high.
December 5, 2008 at 4:38 PM #312430MadeInTaiwan
Participant[quote=cooperthedog][quote=asianautica] Pay a few thousands up front will save you tens of thousands over the life of the loan.[/quote]
True, but the opportunity cost of the few thousand also must be taken into account.
If your rate of return is higher from investing the buydown money, then you will “save” less over the life of the loan vs. investing it.
With rates at 5%, do you expect your investments to return more or less then that over the next 30 years? Another way to look at it is; would you be willing to invest in a 30 year bond at 5%, or would you be worried about future inflation or better returns from different asset classes?
I’m of the opinion that with fixed rates this low, I want to use as much of other peoples money as possible. [/quote]
Good point, specially if you suspect in the mid future inflation will be high.
December 5, 2008 at 4:38 PM #312462MadeInTaiwan
Participant[quote=cooperthedog][quote=asianautica] Pay a few thousands up front will save you tens of thousands over the life of the loan.[/quote]
True, but the opportunity cost of the few thousand also must be taken into account.
If your rate of return is higher from investing the buydown money, then you will “save” less over the life of the loan vs. investing it.
With rates at 5%, do you expect your investments to return more or less then that over the next 30 years? Another way to look at it is; would you be willing to invest in a 30 year bond at 5%, or would you be worried about future inflation or better returns from different asset classes?
I’m of the opinion that with fixed rates this low, I want to use as much of other peoples money as possible. [/quote]
Good point, specially if you suspect in the mid future inflation will be high.
December 5, 2008 at 4:38 PM #312484MadeInTaiwan
Participant[quote=cooperthedog][quote=asianautica] Pay a few thousands up front will save you tens of thousands over the life of the loan.[/quote]
True, but the opportunity cost of the few thousand also must be taken into account.
If your rate of return is higher from investing the buydown money, then you will “save” less over the life of the loan vs. investing it.
With rates at 5%, do you expect your investments to return more or less then that over the next 30 years? Another way to look at it is; would you be willing to invest in a 30 year bond at 5%, or would you be worried about future inflation or better returns from different asset classes?
I’m of the opinion that with fixed rates this low, I want to use as much of other peoples money as possible. [/quote]
Good point, specially if you suspect in the mid future inflation will be high.
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