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Doooh
Participant[quote=MountainBound]If I were to take a 5% loan,effective rate would be around 3.6% with the tax break, then get into 10-year treasury when rates are over 10%, I think it might work. Worse comes to worse and rates never go up, I could pay off the loan and be done with it. I’m sure there are risks, but I’m confident the financial mess will get much worse from here. What do you think?[/quote]
It would only be a 3.6% effective rate for the first year and goes back to 5% every year after that. At about 15 years (I think) your, principal/intrest ratio would be so low that you wouldn’t have a tax write off.
If you lost your job, or source of income your effective rate would rocket back to 5% because you wouldn’t have an income to write off.
So, let’s do some easy math on a $500,000 home loan.
Year 1 your cost is $18,000 to barrow the $500k. You can make 1% easily in savings accounts which offsets your cost by 5,000.Year 1 your in the hole $13,000
Year 2 = ? (Now we have to get the mortgage calculator out because I don’t know what the Principal would be) It’s a safe assumption to be making 1.5% in a FDIC insured savings account by 2012.
Help anybody?
Participant[quote=MountainBound]If I were to take a 5% loan,effective rate would be around 3.6% with the tax break, then get into 10-year treasury when rates are over 10%, I think it might work. Worse comes to worse and rates never go up, I could pay off the loan and be done with it. I’m sure there are risks, but I’m confident the financial mess will get much worse from here. What do you think?[/quote]
It would only be a 3.6% effective rate for the first year and goes back to 5% every year after that. At about 15 years (I think) your, principal/intrest ratio would be so low that you wouldn’t have a tax write off.
If you lost your job, or source of income your effective rate would rocket back to 5% because you wouldn’t have an income to write off.
So, let’s do some easy math on a $500,000 home loan.
Year 1 your cost is $18,000 to barrow the $500k. You can make 1% easily in savings accounts which offsets your cost by 5,000.Year 1 your in the hole $13,000
Year 2 = ? (Now we have to get the mortgage calculator out because I don’t know what the Principal would be) It’s a safe assumption to be making 1.5% in a FDIC insured savings account by 2012.
Help anybody?
Participant[quote=MountainBound]If I were to take a 5% loan,effective rate would be around 3.6% with the tax break, then get into 10-year treasury when rates are over 10%, I think it might work. Worse comes to worse and rates never go up, I could pay off the loan and be done with it. I’m sure there are risks, but I’m confident the financial mess will get much worse from here. What do you think?[/quote]
It would only be a 3.6% effective rate for the first year and goes back to 5% every year after that. At about 15 years (I think) your, principal/intrest ratio would be so low that you wouldn’t have a tax write off.
If you lost your job, or source of income your effective rate would rocket back to 5% because you wouldn’t have an income to write off.
So, let’s do some easy math on a $500,000 home loan.
Year 1 your cost is $18,000 to barrow the $500k. You can make 1% easily in savings accounts which offsets your cost by 5,000.Year 1 your in the hole $13,000
Year 2 = ? (Now we have to get the mortgage calculator out because I don’t know what the Principal would be) It’s a safe assumption to be making 1.5% in a FDIC insured savings account by 2012.
Help anybody?
ParticipantNo I didn’t think you were a Cougar, I just figured anybody could last a drink before TG asked them to bed. But, in hind sight, your right, 47 minutes is pushing it, what was I thinking?
ParticipantNo I didn’t think you were a Cougar, I just figured anybody could last a drink before TG asked them to bed. But, in hind sight, your right, 47 minutes is pushing it, what was I thinking?
ParticipantNo I didn’t think you were a Cougar, I just figured anybody could last a drink before TG asked them to bed. But, in hind sight, your right, 47 minutes is pushing it, what was I thinking?
ParticipantNo I didn’t think you were a Cougar, I just figured anybody could last a drink before TG asked them to bed. But, in hind sight, your right, 47 minutes is pushing it, what was I thinking?
ParticipantNo I didn’t think you were a Cougar, I just figured anybody could last a drink before TG asked them to bed. But, in hind sight, your right, 47 minutes is pushing it, what was I thinking?
ParticipantTemecula Guy, meet Bearishgurl. I be happy to buy a round of drinks in order to get you guys together face to face.
Of course, my generosity would reserve me the right to be the bookie and take bets. I give TG 47 minutes before she throws water in his face.
ParticipantTemecula Guy, meet Bearishgurl. I be happy to buy a round of drinks in order to get you guys together face to face.
Of course, my generosity would reserve me the right to be the bookie and take bets. I give TG 47 minutes before she throws water in his face.
ParticipantTemecula Guy, meet Bearishgurl. I be happy to buy a round of drinks in order to get you guys together face to face.
Of course, my generosity would reserve me the right to be the bookie and take bets. I give TG 47 minutes before she throws water in his face.
ParticipantTemecula Guy, meet Bearishgurl. I be happy to buy a round of drinks in order to get you guys together face to face.
Of course, my generosity would reserve me the right to be the bookie and take bets. I give TG 47 minutes before she throws water in his face.
ParticipantTemecula Guy, meet Bearishgurl. I be happy to buy a round of drinks in order to get you guys together face to face.
Of course, my generosity would reserve me the right to be the bookie and take bets. I give TG 47 minutes before she throws water in his face.
ParticipantMy 2010 resolution was to hammer down our finances and our budget. Quickbooks was broken out last night, for a final round before the year ends, and there’s a couple more tweeks needed to come to a hard conclusion.
I want to exclude all toy expenses and rental costs. I have enough wrapped up in toys that I don’t need more, and when I get tired of the ones I have, I’ll have to the time to sell them for what ever new junk I want. Rent will be out of the picture with a paid off home under my belt.
I want to see what food, utilities and clothes cost. We lived frugally, as we normally would have through 2010, though we didn’t try and break ourselves down in order to spend the bear minimus. There’s some savings that can easily be had if we wanted… For instance Turkeys were $5 after Thankgiving those suckers are GOOD deep fried, and they will last a year in the freezer. I hunt and fish, and with some extra TIME laying around, I think all of these things can bring the food bill way down, maybe by 25-40% or so, and we would be eating better to boot.
So, I think I can deduce what our lifestyle would cost minus the extra Health insurance bill and the payed of house maintenance that we’d incur. Fuel cost would drop dramatically, I want to say the work clothes bill would drop too, but I work in pants a t-shirt so there wouldn’t be a change.
What have I missed, besides the cost of a kid or two? (insert sarcasm here)
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