[Raybyrnes]

I might be missing something but I would think that right now is probably a great time to be an Experienced Realtor. Bank inventories are growing. I would think that you get one account and you are on easy street. They might require a little bit more paperwork but once you have your staff trained you can create a significant value add to the clients you represent. Additionally the small realtors who got into the business to help their friends are being flushed out. Sure their is a little pain as you go through the transition but ultimately you can come out way ahead. No different than when a factory has to retool. Things slow down and then produciton increases.

[Raybyrnes]

I am just using an example with 6% but I felt the the cap gains wash out with the deduction for interest. I just wanted to keep the example simple. I am certain we can complicate this with risk analyis, risk arbitrage and a lot of other variables.

Yes I understand that paying down the mortgage is risk free vs investing in the market carries risk premium. But if we are talking baout 10 years plus the risk seems to go down pretty dramatically.

[Raybyrnes]

I am just using an example with 6% but I felt the the cap gains wash out with the deduction for interest. I just wanted to keep the example simple. I am certain we can complicate this with risk analyis, risk arbitrage and a lot of other variables.

Yes I understand that paying down the mortgage is risk free vs investing in the market carries risk premium. But if we are talking baout 10 years plus the risk seems to go down pretty dramatically.

[Raybyrnes]

I am just using an example with 6% but I felt the the cap gains wash out with the deduction for interest. I just wanted to keep the example simple. I am certain we can complicate this with risk analyis, risk arbitrage and a lot of other variables.

Yes I understand that paying down the mortgage is risk free vs investing in the market carries risk premium. But if we are talking baout 10 years plus the risk seems to go down pretty dramatically.

[Raybyrnes]

I am just using an example with 6% but I felt the the cap gains wash out with the deduction for interest. I just wanted to keep the example simple. I am certain we can complicate this with risk analyis, risk arbitrage and a lot of other variables.

Yes I understand that paying down the mortgage is risk free vs investing in the market carries risk premium. But if we are talking baout 10 years plus the risk seems to go down pretty dramatically.

[Raybyrnes]

jamsvet
I think this is a good suggestion but if I had a choice of putting extra money toward my mortgage payment at 6% or throwing it into an index mutual fund I would probably choose to throw it in the index fund. Historically the mutual fund will get you 10% and at a fixed rate of 6% I feel I benefit from the laws of compunding. ANything that I am missing in this logic.

[Raybyrnes]

jamsvet
I think this is a good suggestion but if I had a choice of putting extra money toward my mortgage payment at 6% or throwing it into an index mutual fund I would probably choose to throw it in the index fund. Historically the mutual fund will get you 10% and at a fixed rate of 6% I feel I benefit from the laws of compunding. ANything that I am missing in this logic.

[Raybyrnes]

jamsvet
I think this is a good suggestion but if I had a choice of putting extra money toward my mortgage payment at 6% or throwing it into an index mutual fund I would probably choose to throw it in the index fund. Historically the mutual fund will get you 10% and at a fixed rate of 6% I feel I benefit from the laws of compunding. ANything that I am missing in this logic.

[Raybyrnes]

jamsvet
I think this is a good suggestion but if I had a choice of putting extra money toward my mortgage payment at 6% or throwing it into an index mutual fund I would probably choose to throw it in the index fund. Historically the mutual fund will get you 10% and at a fixed rate of 6% I feel I benefit from the laws of compunding. ANything that I am missing in this logic.

[Raybyrnes]

cooprider14
I have to say that I have not done the proof and right now but this is not as uncommon as people are making it out to be. It is used in Australia and Europe.

I wouldn’t be so skeptical of different techniques. There are a lot of Diesel cars in Europe that have not made their way to the States and they are far more efficient and practical. If they show up and Youtube that means they are a scam???

You guys are focusing on the wrong side of this pay down deal. You are only looking at the rate. To equate a monthly payment it is rate times the balance. If my payment goes in first and immediately reduces my outstanding principal balance at the beginining of the month from 100000 to 97000 on the First Day of the month, and then as the month goes on my balance goes from 0 to 3000 at the end of the month on the heloc so that my daily interest can actually go down on then net. It is complicated and requires timing your payment and manging your cash flow. Again I am not endorsing the product but I think I get how it works.

Quick math 4% interest on 100000K loan is $4000. Time the payments so that you are putting 100% of payment immediately toward balance so that you are systematically lowering the average outstanding balance throughout the year to 90000 and you can have a higher rate of %4.44 and still only pay 4000 in interest.

I think this is the concept. There more to it than some people of you are dismissing. But it requires more effort than it is worth for the average Joe.

[Raybyrnes]

cooprider14
I have to say that I have not done the proof and right now but this is not as uncommon as people are making it out to be. It is used in Australia and Europe.

I wouldn’t be so skeptical of different techniques. There are a lot of Diesel cars in Europe that have not made their way to the States and they are far more efficient and practical. If they show up and Youtube that means they are a scam???

You guys are focusing on the wrong side of this pay down deal. You are only looking at the rate. To equate a monthly payment it is rate times the balance. If my payment goes in first and immediately reduces my outstanding principal balance at the beginining of the month from 100000 to 97000 on the First Day of the month, and then as the month goes on my balance goes from 0 to 3000 at the end of the month on the heloc so that my daily interest can actually go down on then net. It is complicated and requires timing your payment and manging your cash flow. Again I am not endorsing the product but I think I get how it works.

Quick math 4% interest on 100000K loan is $4000. Time the payments so that you are putting 100% of payment immediately toward balance so that you are systematically lowering the average outstanding balance throughout the year to 90000 and you can have a higher rate of %4.44 and still only pay 4000 in interest.

I think this is the concept. There more to it than some people of you are dismissing. But it requires more effort than it is worth for the average Joe.

[Raybyrnes]

cooprider14
I have to say that I have not done the proof and right now but this is not as uncommon as people are making it out to be. It is used in Australia and Europe.

I wouldn’t be so skeptical of different techniques. There are a lot of Diesel cars in Europe that have not made their way to the States and they are far more efficient and practical. If they show up and Youtube that means they are a scam???

You guys are focusing on the wrong side of this pay down deal. You are only looking at the rate. To equate a monthly payment it is rate times the balance. If my payment goes in first and immediately reduces my outstanding principal balance at the beginining of the month from 100000 to 97000 on the First Day of the month, and then as the month goes on my balance goes from 0 to 3000 at the end of the month on the heloc so that my daily interest can actually go down on then net. It is complicated and requires timing your payment and manging your cash flow. Again I am not endorsing the product but I think I get how it works.

Quick math 4% interest on 100000K loan is $4000. Time the payments so that you are putting 100% of payment immediately toward balance so that you are systematically lowering the average outstanding balance throughout the year to 90000 and you can have a higher rate of %4.44 and still only pay 4000 in interest.

I think this is the concept. There more to it than some people of you are dismissing. But it requires more effort than it is worth for the average Joe.

[Raybyrnes]

cooprider14
I have to say that I have not done the proof and right now but this is not as uncommon as people are making it out to be. It is used in Australia and Europe.

I wouldn’t be so skeptical of different techniques. There are a lot of Diesel cars in Europe that have not made their way to the States and they are far more efficient and practical. If they show up and Youtube that means they are a scam???

You guys are focusing on the wrong side of this pay down deal. You are only looking at the rate. To equate a monthly payment it is rate times the balance. If my payment goes in first and immediately reduces my outstanding principal balance at the beginining of the month from 100000 to 97000 on the First Day of the month, and then as the month goes on my balance goes from 0 to 3000 at the end of the month on the heloc so that my daily interest can actually go down on then net. It is complicated and requires timing your payment and manging your cash flow. Again I am not endorsing the product but I think I get how it works.

Quick math 4% interest on 100000K loan is $4000. Time the payments so that you are putting 100% of payment immediately toward balance so that you are systematically lowering the average outstanding balance throughout the year to 90000 and you can have a higher rate of %4.44 and still only pay 4000 in interest.

I think this is the concept. There more to it than some people of you are dismissing. But it requires more effort than it is worth for the average Joe.

[Raybyrnes]

patientlywaiting

You need to indicate to the lender that you wnat overage applied to the balance otherwise they are simply going to apply it towards the next months payment.

[Raybyrnes]

patientlywaiting

You need to indicate to the lender that you wnat overage applied to the balance otherwise they are simply going to apply it towards the next months payment.

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