[no_such_reality]

PC, it doesn’t. If you have a 10% savings rate, redirect that to paying off the home without an HELOC, you actually pay it off faster.

I know they are applying your savings to the loan for one simple reason, if you change the rate of savings on their simulator, the payment shortens. Shortens dramatically. If you change the expenses so there is little savings, it errors and takes 29.7 years.

i.e. If you have a $400,000 loan on the simulator with $120K income and 10% savings rate, you can pay the loan off in 17.2years. Of course, if you just apply that $1000/month “savings” to the loan, you’d actually pay it off in 14 years 10 months. If you double your savings rate to 20%, then you could pay off in 10.9 years. If you actually applied $2000 surplus to loan, you’d pay off in 10.1 years.

If you go in adjust the expenses so there’s less excess cash, say only $300/month, the payoff results in 29.5 years (6 months early), however if you’d just pay $100/month more on a $400K loan, you would actually pay it off in 27 years.

[no_such_reality]

It’s shell game with a little bit of arbitrage.

Basically, the only way to pay off a 30 year loan in 15 years is to make 40% larger payments.

There scenario requires two basic things, over 20% equity in the home and over 10% savings rate.

I think that rules out many.

[no_such_reality]

Price reductions and incentives galore!

[no_such_reality]

My cult of personality comment is as another said I’m kind of putout by the idea that party pushers can put a guys face all over magazines and speak at conventions and all of a sudden he is qualified to run the country.

To be completely honest, I see the Democratic Party handling Obama the way a record exec handles the lead singer of the next big boy band with the public. That’s cult of personality. That’s image and spin. That’s really all Obama is at this point.

[no_such_reality]

Then we’re saying much the same thing.

Not only is income higher there, cost of living is lower there.

Now, can we just do something about the weather.

[no_such_reality]

post error.

[no_such_reality]

post error.

[no_such_reality]

There’s no need, I don’t care.

It doesn’t matter if this is an off topic forum, I’m sick of continuous political election process. I sick of political hacks intruding on every aspect of civil life to push their candidate like a crack dealer.

Obama wants to lead, then he should do his Senate job for the next two years. That goes for McCain, Hillary and any other politico that is already positioning for the next election when the elected members from this election took office barely more than a week ago.

What’s Obama going to do about the housing bubble? The economy? Jack diddly, it’ll be three years before any budget or presidential discretion he has can take affect.

In the end, I may actually support him if he’s the best candidate, given the incredible lack of leadership in either party, that’s not difficult.

However, given that the election is 21 months away and the first Democratic primary in Iowa is 12 months away, can we just give it a rest for 6 bloody months were they do the JOB they’re currently elected for?

[no_such_reality]

SDR, no I’m not.

It’s cost of living. In each of the areas I listed, you’d have the same comparable total expenses and San Diego. Not more.

If you live on $50,000 in San Diego, you can get by with $49,000 in queens. $44,000 in NJ.

If you live on $100,000 in San Diego, you can get by with $98,000 in Queens.

I have family in the White Plains (NYC suburb) area, it is not more expensive than suburban SD.

[no_such_reality]

Can we delete this SPAM?

Just what the country needs, another cult of personality.

[no_such_reality]

Salary in San Diego CA: $50,000
Comparable salary in New York (Queens) NY: $49,118.63

If you move from San Diego CA to New York (Queens) NY…

Groceries will cost: 8.992% more
Housing will cost: 17.505% less
Utilities will cost: 48.43% more
Transportation will cost: 5.509% less
Healthcare will cost: 0.349% less

Maybe you mean Nassau county (Long Island)…
Salary in San Diego CA: $50,000
Comparable salary in Nassau County NY: $51,360.52

If you move from San Diego CA to Nassau County NY…

Groceries will cost: 10.192% more
Housing will cost: 6.91% less
Utilities will cost: 48.303% more
Transportation will cost: 0.187% less
Healthcare will cost: 0.732% less

Nope that’s not it,

What about suburban New York? White Plains, Bronxville, Middlesex Jersey?
Salary in San Diego CA: $50,000
Comparable salary in Middlesex – Monmouth NJ: $44,855.2

If you move from San Diego CA to Middlesex – Monmouth NJ…

Groceries will cost: 2.282% less
Housing will cost: 24.278% less
Utilities will cost: 25.103% more
Transportation will cost: 12.336% less
Healthcare will cost: 9.898% less

Nope.

Only looks like downtown Manhatten is more.
Salary in San Diego CA: $50,000
Comparable salary in New York (Manhattan) NY: $73,359.68

If you move from San Diego CA to New York (Manhattan) NY…

Groceries will cost: 14.952% more
Housing will cost: 79.763% more
Utilities will cost: 55.652% more
Transportation will cost: 1.904% less
Healthcare will cost: 13.225% more

[no_such_reality]

Yes, hence, I think sellers will be resistant unless the bank switches to judicial foreclosure in an attempt to saddle the defaulter with debt payments.

I wonder if the banks will wake up and realize that $200,000 of cash out refi is sitting on the driveway as a late model BMW, new monster pickup with $3000 rims, boat and $5000 Sony LCD TV over the fireplace and try and force liquidation to service the debt.

[no_such_reality]

PC, I doubt it. If you have a pre-2001 purchase, transaction and opportunity costs are high. As you point out, many in that boat are cheaper than renting.

The other side is to cash out and invest, deal with renting, and hope the deflation that we’re predicting infects the housing market doesn’t infect other investments where you could easily watch your equity vaporize anyway. Or worse, you lock it in safe CDs because of deflationary concerns and housing slow lands with the markets performing to historical averages.

There’s a whole bunch of ways to be wrong. In the end, being 15 years into a 30 year fixed loan on a house that was originally purchased for what the future bottom is likely to be close to, probaby isn’t going to be a bad place to be.

[no_such_reality]

Okay, when it takes on enough water and is just about ready swamp… (another 20-30%)

It’ll land on top of the reef of fundamentals and sit there until it gets patched back up.

[no_such_reality]

Only one thing can save the ship, the return of double digit appreciation.

Cheap money and the current price drop may get some buyers off the fence, but it won’t do any good if the buyers are buying at 20% below fall 2005 numbers.

[Author]

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