[PerryChase]

Rustico, do what I do. Get a wireless notebook computer and carry it around the house and use it as your online magazine/newspaper. I even use my computer to listen to foreign radio and television programming, or to such show as Charlie Rose. No need for cable.

Staples and Office Depot sell good notebooks of $429. That’s all you need.

[PerryChase]

Those with assets and who have pretty much everything they need already have nothing to fear from a high interest rate, high inflation environment. That’s actually an opportunity to acquire more assets at depressed prices (albeit at high finance charges). The high rates won’t last forever then you can refinance to lower rates and have the principal almost paid-off. Voila! Piggingtons should all root for 20% mortgage rates.

[PerryChase]

Those with assets and who have pretty much everything they need already have nothing to fear from a high interest rate, high inflation environment. That’s actually an opportunity to acquire more assets at depressed prices (albeit at high finance charges). The high rates won’t last forever then you can refinance to lower rates and have the principal almost paid-off. Voila! Piggingtons should all root for 20% mortgage rates.

[PerryChase]

Very good point SD Realtor.

Here’s an article about bond yields affecting the market.
http://news.yahoo.com/s/ap/20070608/ap_on_bi_ge/10_year_yield_9

I do however think that the million dollar club will be affected as well but with a little bit longer lag. Many business people, especially, the nouveaux riches, who bought in the last 5 years have Interest Only loans or Option ARMs. Business people are the type who generally think why leave millions in my house when I can leverage that money in my business? Actually, the exotic loans were designed for such people (not for middle-class salaried buyers). Businesses depend on easy money. Without it, you’ll see some major retrenchment.

I think that the majority of adults don’t remember a high interest rate environment and won’t know how to deal with it. I once met a British woman who told me she missed Thatcher, the “good old days of 15% from her savings account.” For elderly people with assets and no debt, high interest rates is an ideal environment.

[PerryChase]

Very good point SD Realtor.

Here’s an article about bond yields affecting the market.
http://news.yahoo.com/s/ap/20070608/ap_on_bi_ge/10_year_yield_9

I do however think that the million dollar club will be affected as well but with a little bit longer lag. Many business people, especially, the nouveaux riches, who bought in the last 5 years have Interest Only loans or Option ARMs. Business people are the type who generally think why leave millions in my house when I can leverage that money in my business? Actually, the exotic loans were designed for such people (not for middle-class salaried buyers). Businesses depend on easy money. Without it, you’ll see some major retrenchment.

I think that the majority of adults don’t remember a high interest rate environment and won’t know how to deal with it. I once met a British woman who told me she missed Thatcher, the “good old days of 15% from her savings account.” For elderly people with assets and no debt, high interest rates is an ideal environment.

[PerryChase]

CMcG, sorry I offended you. I apologize.

I too had help when I bought my first house. As I grew older, I’ve learned to take the breaks that life hands you but not to live with the hope of a future event happening your way. You have to make it happen yourself.

You seem to have very Asian, or traditional European (Italian) outlook on life.

I would never expect my child to live with me when he grows up. He’ll have a life of his own. If life events bring parents and children back under the same roof, then fine. But expecting your child to live with and care for you in your old age is a lot of pressure for both parent and child.

Just my own philosophy.

[PerryChase]

CMcG, sorry I offended you. I apologize.

I too had help when I bought my first house. As I grew older, I’ve learned to take the breaks that life hands you but not to live with the hope of a future event happening your way. You have to make it happen yourself.

You seem to have very Asian, or traditional European (Italian) outlook on life.

I would never expect my child to live with me when he grows up. He’ll have a life of his own. If life events bring parents and children back under the same roof, then fine. But expecting your child to live with and care for you in your old age is a lot of pressure for both parent and child.

Just my own philosophy.

[PerryChase]

CMcG, looks like you have a habit of relying on others.

It’s good that you have family who willing to help you out. Many others are not as fortunate.

[PerryChase]

CMcG, looks like you have a habit of relying on others.

It’s good that you have family who willing to help you out. Many others are not as fortunate.

[PerryChase]

Ozzie, point well taken.

By why didn’t you get a 15-year mortgage to take advantage of lower mortgage rates?

[PerryChase]

Ozzie, point well taken.

By why didn’t you get a 15-year mortgage to take advantage of lower mortgage rates?

[PerryChase]

It’s a forever mortgage, meaning you never pay it back, even in a thousand years, if you keep on refinancing from interest only to interest only.

If you can earn a higher interest rate from investing your money elsewhere, then go for it. But be sure to save if you go interest only.

The problem is that home equity used to be hard to get to. We have now monetized home equity; and when when people have money it burns a hole in their pockets. They spend it on SUVs, boats, fancy clothes, etc…

Personally, I like the peace of mind of having my house paid off at retirement. Imagine what life would be like if had no housing expenses. You could be goofing-off, traveling and taking it easy. I guess you could do that on home-equity too… ’til it’s time to pay the piper.

[PerryChase]

It’s a forever mortgage, meaning you never pay it back, even in a thousand years, if you keep on refinancing from interest only to interest only.

If you can earn a higher interest rate from investing your money elsewhere, then go for it. But be sure to save if you go interest only.

The problem is that home equity used to be hard to get to. We have now monetized home equity; and when when people have money it burns a hole in their pockets. They spend it on SUVs, boats, fancy clothes, etc…

Personally, I like the peace of mind of having my house paid off at retirement. Imagine what life would be like if had no housing expenses. You could be goofing-off, traveling and taking it easy. I guess you could do that on home-equity too… ’til it’s time to pay the piper.

[PerryChase]

There’s another excellent chart.

http://bp1.blogger.com/_nSTO-vZpSgc/Rme8yHvw2iI/AAAAAAAAAz0/911CnD77NNU/s1600-h/mortgage-resets.png

[PerryChase]

There’s another excellent chart.

http://bp1.blogger.com/_nSTO-vZpSgc/Rme8yHvw2iI/AAAAAAAAAz0/911CnD77NNU/s1600-h/mortgage-resets.png

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