You folks that took out 30 year loans / refinances at 3% or lower…you’re banking now.

[Coronita]

Check out the latest CD rates from Schwab.

[img_assist|nid=27742|title=Cds|desc=|link=node|align=left|width=490]

[sdrealtor]

Those sub 3% mortgages were the opportubnity of a lifetime!

[scaredyclassic]

well…really, you’re just breaking even after tax. not quite a winner yet

[Coronita]

[quote=scaredyclassic]well…really, you’re just breaking even after tax. not quite a winner yet[/quote]

Yes, but we know that this will change consider we still have a boatload of rate hikes coming….

[scaredyclassic]

i KNOW NOTHING.

[The-Shoveler]

Everyone’s seems to be telling the fed to “STOP!!!”

Stock market seems to think fed’s going to listen.

[scaredyclassic]

Like Russia the fed may declare victory and back away. But maybe not.

Who the heck knows

[svelte]

[quote=Coronita][quote=scaredyclassic]well…really, you’re just breaking even after tax. not quite a winner yet[/quote]

Yes, but we know that this will change consider we still have a boatload of rate hikes coming….[/quote]

Imagine that cash will still be worth less every year when taking into account inflation. Even after more rate hikes.

[Coronita]

[quote=svelte][quote=Coronita][quote=scaredyclassic]well…really, you’re just breaking even after tax. not quite a winner yet[/quote]

Yes, but we know that this will change consider we still have a boatload of rate hikes coming….[/quote]

Imagine that cash will still be worth less every year when taking into account inflation. Even after more rate hikes.[/quote]

But it’s not your cash to begin with.. it’s borrowed. And if it was taken on a primary.. your equity was just sitting there doing nothing anyway. Your primary isn’t earning money..

[svelte]

[quote=Coronita]

But it’s not your cash to begin with.. it’s borrowed. And if it was taken on a primary.. your equity was just sitting there doing nothing anyway. Your primary isn’t earning money..[/quote]

Neither is the money your borrowed.

Let’s say you borrowed 500,000 at 3%. That’s costing you $15K per year.

Let’s say you put that 500,000 in a CD earning 4.25%. That’s 21,250

21250- 15K = 6250.

Say you pay 30% taxes, state and fed. 21250 x .30 = 6375. You’re underwater.

Let’s be very generous and say you pay 25% taxes, state and fed.

21250 x .25 = 5312. you made $900.

[sdrealtor]

[quote=svelte][quote=Coronita]

But it’s not your cash to begin with.. it’s borrowed. And if it was taken on a primary.. your equity was just sitting there doing nothing anyway. Your primary isn’t earning money..[/quote]

Neither is the money your borrowed.

Let’s say you borrowed 500,000 at 3%. That’s costing you $15K per year.

Let’s say you put that 500,000 in a CD earning 4.25%. That’s 21,250

21250- 15K = 6250.

Say you pay 30% taxes, state and fed. 21250 x .30 = 6375. You’re underwater.

Let’s be very generous and say you pay 25% taxes, state and fed.

21250 x .25 = 5312. you made $900.[/quote]

You can deduct interest on a first mortgage on your primary

[scaredyclassic]

[quote=sdrealtor][quote=svelte][quote=Coronita]

But it’s not your cash to begin with.. it’s borrowed. And if it was taken on a primary.. your equity was just sitting there doing nothing anyway. Your primary isn’t earning money..[/quote]

Neither is the money your borrowed.

Let’s say you borrowed 500,000 at 3%. That’s costing you $15K per year.

Let’s say you put that 500,000 in a CD earning 4.25%. That’s 21,250

21250- 15K = 6250.

Say you pay 30% taxes, state and fed. 21250 x .30 = 6375. You’re underwater.

Let’s be very generous and say you pay 25% taxes, state and fed.

21250 x .25 = 5312. you made $900.[/quote]

You can deduct interest on a first mortgage on your primary[/quote]

Std deduction too big, interest too tiny

[scaredyclassic]

Not worth it

[an]

[quote=scaredyclassic]Not worth it[/quote]
Any $ I can make for doing nothing is worth it for me.

[an]

CD rate doesn’t make me salivate as much as the inflation rate. Transitory, right?

[Author]

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