[an]

[quote=CA renter]And you have no idea how much I despise the government’s role in forcing us to use middle men who’ve paid off someone in congress. If the government is taking the risk, then “We the People” are taking the risk, and should be rewarded by having direct access to OUR govt lenders.

There are so many areas where we’re forced to use middle men who do ABSOLUTELY NOTHING but pocket profits that belong to either the government or the customers.[/quote]
I agree with this point, but this is a totally different debate. I stand by my original statement/point.

[an]

[quote=CA renter]And you have no idea how much I despise the government’s role in forcing us to use middle men who’ve paid off someone in congress. If the government is taking the risk, then “We the People” are taking the risk, and should be rewarded by having direct access to OUR govt lenders.

There are so many areas where we’re forced to use middle men who do ABSOLUTELY NOTHING but pocket profits that belong to either the government or the customers.[/quote]
I agree with this point, but this is a totally different debate. I stand by my original statement/point.

[an]

[quote=kcal09]That is absolutely correct. That’s why I bought my house in cash…[/quote]
Uhh… (unless I messed up my calculation)hope you know that if you bought it in cash for $850k, then you’re actually pay more than if you would have financed it over 30 years (assuming 6% return for your cash). $850k cash today, assuming 6% return will equal $5.1M in 30 years. The buyer of such $400k house really paid ~$770k. The $450/month in MR is $162k over 30 years. So $5.1M-$770k-$162k = ~$4.16M.

[an]

[quote=kcal09]That is absolutely correct. That’s why I bought my house in cash…[/quote]
Uhh… (unless I messed up my calculation)hope you know that if you bought it in cash for $850k, then you’re actually pay more than if you would have financed it over 30 years (assuming 6% return for your cash). $850k cash today, assuming 6% return will equal $5.1M in 30 years. The buyer of such $400k house really paid ~$770k. The $450/month in MR is $162k over 30 years. So $5.1M-$770k-$162k = ~$4.16M.

[an]

[quote=kcal09]That is absolutely correct. That’s why I bought my house in cash…[/quote]
Uhh… (unless I messed up my calculation)hope you know that if you bought it in cash for $850k, then you’re actually pay more than if you would have financed it over 30 years (assuming 6% return for your cash). $850k cash today, assuming 6% return will equal $5.1M in 30 years. The buyer of such $400k house really paid ~$770k. The $450/month in MR is $162k over 30 years. So $5.1M-$770k-$162k = ~$4.16M.

[an]

[quote=kcal09]That is absolutely correct. That’s why I bought my house in cash…[/quote]
Uhh… (unless I messed up my calculation)hope you know that if you bought it in cash for $850k, then you’re actually pay more than if you would have financed it over 30 years (assuming 6% return for your cash). $850k cash today, assuming 6% return will equal $5.1M in 30 years. The buyer of such $400k house really paid ~$770k. The $450/month in MR is $162k over 30 years. So $5.1M-$770k-$162k = ~$4.16M.

[an]

[quote=kcal09]That is absolutely correct. That’s why I bought my house in cash…[/quote]
Uhh… (unless I messed up my calculation)hope you know that if you bought it in cash for $850k, then you’re actually pay more than if you would have financed it over 30 years (assuming 6% return for your cash). $850k cash today, assuming 6% return will equal $5.1M in 30 years. The buyer of such $400k house really paid ~$770k. The $450/month in MR is $162k over 30 years. So $5.1M-$770k-$162k = ~$4.16M.

[an]

[quote=kcal09]You’re reasoning is flawed. If I invested the MR of $450 per month in stocks and mutual funds with an average yield of 6% I’ll have $454,700 at the end of the 30 years![/quote]
Using this same logic, buying these house for $850k and $450/month MR really cost you ~$3.4M compare to buying a $400k house and invest the $110k difference in down payment and $2700/month in monthly payment. That hasn’t count in the tax difference either.

[an]

[quote=kcal09]You’re reasoning is flawed. If I invested the MR of $450 per month in stocks and mutual funds with an average yield of 6% I’ll have $454,700 at the end of the 30 years![/quote]
Using this same logic, buying these house for $850k and $450/month MR really cost you ~$3.4M compare to buying a $400k house and invest the $110k difference in down payment and $2700/month in monthly payment. That hasn’t count in the tax difference either.

[an]

[quote=kcal09]You’re reasoning is flawed. If I invested the MR of $450 per month in stocks and mutual funds with an average yield of 6% I’ll have $454,700 at the end of the 30 years![/quote]
Using this same logic, buying these house for $850k and $450/month MR really cost you ~$3.4M compare to buying a $400k house and invest the $110k difference in down payment and $2700/month in monthly payment. That hasn’t count in the tax difference either.

[an]

[quote=kcal09]You’re reasoning is flawed. If I invested the MR of $450 per month in stocks and mutual funds with an average yield of 6% I’ll have $454,700 at the end of the 30 years![/quote]
Using this same logic, buying these house for $850k and $450/month MR really cost you ~$3.4M compare to buying a $400k house and invest the $110k difference in down payment and $2700/month in monthly payment. That hasn’t count in the tax difference either.

[an]

[quote=kcal09]You’re reasoning is flawed. If I invested the MR of $450 per month in stocks and mutual funds with an average yield of 6% I’ll have $454,700 at the end of the 30 years![/quote]
Using this same logic, buying these house for $850k and $450/month MR really cost you ~$3.4M compare to buying a $400k house and invest the $110k difference in down payment and $2700/month in monthly payment. That hasn’t count in the tax difference either.

[an]

[quote=CA renter]In other words, if you could have borrowed from the last note holder, you would have been paying less in interest/fees.[/quote]
That’s the problem with your assumption. I can’t borrow directly from the party who’s currently holding my loan (Fannie May). I hope you’re aware of the difference between retail and wholesale. Borrower can’t get access to those money. We can only borrow at retail. I already stated that I looked into refi when my loan changed hands and would have to pay HIGHER rate than the rate I have.

[an]

[quote=CA renter]In other words, if you could have borrowed from the last note holder, you would have been paying less in interest/fees.[/quote]
That’s the problem with your assumption. I can’t borrow directly from the party who’s currently holding my loan (Fannie May). I hope you’re aware of the difference between retail and wholesale. Borrower can’t get access to those money. We can only borrow at retail. I already stated that I looked into refi when my loan changed hands and would have to pay HIGHER rate than the rate I have.

[an]

[quote=CA renter]In other words, if you could have borrowed from the last note holder, you would have been paying less in interest/fees.[/quote]
That’s the problem with your assumption. I can’t borrow directly from the party who’s currently holding my loan (Fannie May). I hope you’re aware of the difference between retail and wholesale. Borrower can’t get access to those money. We can only borrow at retail. I already stated that I looked into refi when my loan changed hands and would have to pay HIGHER rate than the rate I have.

[Author]

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