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October 12, 2007 at 9:44 PM in reply to: how big of a mortgage will i be able to afford if ……. #88639October 12, 2007 at 9:44 PM in reply to: how big of a mortgage will i be able to afford if ……. #88645
Raybyrnes
ParticipantDiscover had a great deal on balance ttansfers. 0% fixed until balance is paid off. Simple requirement was making 2 purchases a month. All you hd to do was pick up a couple of packs of gun and py the % on what amounted 5$ or less a year.
Another great offer was given by Jupitor Bank marketed under the Harvard Card. They provided a 0% rate for 6 month O% on puchaes 0% on checks with no annual fee. I put 3000 towards teh purchae of a new car on credit card,
Citibank had a good card under the Upromise program offering 0% on balance transfers,
For purchases with good credit it is hard to beat the Amercan Exprss Blu which offers 0% on purchases for 15 months. That is an awesome deal. On a 20K limit they are basically giving away a thousand dollars for simply signing up.
People forget Credit cards make 1.5% each time you run your card through a terminal so the mercahnt is foot ing the bill even if you are being subsidized.
October 12, 2007 at 4:04 PM in reply to: how big of a mortgage will i be able to afford if ……. #88562ParticipantCBad
You can pay off the mortgage. The bottom line is that it costs you a lot more money in opportunity costs to pay it off as oppsed to conservatively investing it over the long hall. Addionally it is riskier to have money tied up in a home than having a large diversified portfolio of investments. Transfer the risk to the bank and if you are smart you will never worry about the marshall coming because you ahve assets to make 30 years woth of mortgage payments
October 12, 2007 at 4:04 PM in reply to: how big of a mortgage will i be able to afford if ……. #88567ParticipantCBad
You can pay off the mortgage. The bottom line is that it costs you a lot more money in opportunity costs to pay it off as oppsed to conservatively investing it over the long hall. Addionally it is riskier to have money tied up in a home than having a large diversified portfolio of investments. Transfer the risk to the bank and if you are smart you will never worry about the marshall coming because you ahve assets to make 30 years woth of mortgage payments
October 12, 2007 at 4:00 PM in reply to: how big of a mortgage will i be able to afford if ……. #88560ParticipantSorry,
my 3 year old was pulling on me . I am in agreement wiht you HLS. The guy who pays cash loses every time becasue the price of incentives are built into the cost of the goods. Better to use the credit card get the incentives. Best deal is to max out every 0 percent deal out there and pay the minimum payment until the 0% expires. Then either roll it over to another 0% or pay it off in full. During that time you lkeep your money in a money market account and it is earning you 5+ %.
October 12, 2007 at 4:00 PM in reply to: how big of a mortgage will i be able to afford if ……. #88566ParticipantSorry,
my 3 year old was pulling on me . I am in agreement wiht you HLS. The guy who pays cash loses every time becasue the price of incentives are built into the cost of the goods. Better to use the credit card get the incentives. Best deal is to max out every 0 percent deal out there and pay the minimum payment until the 0% expires. Then either roll it over to another 0% or pay it off in full. During that time you lkeep your money in a money market account and it is earning you 5+ %.
October 12, 2007 at 2:37 PM in reply to: how big of a mortgage will i be able to afford if ……. #88541ParticipantHLS
The system is stacked against cash buyer. All of those incentives are built into the cost of the goods. So if I choose not to use a credit card, it is costing me 2% more than the guy who is getting the 1% back in the form of points and miles plus the additional 5 or 6 % in risk free opportunity cost on 0% credit cards.
October 12, 2007 at 2:37 PM in reply to: how big of a mortgage will i be able to afford if ……. #88548ParticipantHLS
The system is stacked against cash buyer. All of those incentives are built into the cost of the goods. So if I choose not to use a credit card, it is costing me 2% more than the guy who is getting the 1% back in the form of points and miles plus the additional 5 or 6 % in risk free opportunity cost on 0% credit cards.
October 12, 2007 at 1:00 PM in reply to: how big of a mortgage will i be able to afford if ……. #88507ParticipantPeople who say that won’t happen to me.
I suppose that not many people were saying that a plane could crash intothe place they work but it happened in NY.
I suppose that the families in New Orleans could have logically predicted and prepared for Katrina.
I suppose there are a lot of people in La Jolla (Mt Soledad) who felt pretty safe before their homes were destroyed and shared your sentiment. Wonder waht they are sayiung today.
October 12, 2007 at 1:00 PM in reply to: how big of a mortgage will i be able to afford if ……. #88514ParticipantPeople who say that won’t happen to me.
I suppose that not many people were saying that a plane could crash intothe place they work but it happened in NY.
I suppose that the families in New Orleans could have logically predicted and prepared for Katrina.
I suppose there are a lot of people in La Jolla (Mt Soledad) who felt pretty safe before their homes were destroyed and shared your sentiment. Wonder waht they are sayiung today.
October 12, 2007 at 12:20 PM in reply to: how big of a mortgage will i be able to afford if ……. #88493ParticipantCBad,
Let’s present this another way.
2 scenarios
You live in Louisiana. Are you more comfortable having no payment on your home because you have it paid off but have little or no savings becasue you worked you ass off to pay the home off and reduce the interest expense
Or
You have 300 or 400 k in the bank and a 2K a month payment and you are living in a nice place hurt by the fact that you lost you possession but comfortable with the fact taht you ahve plenty of money to rebuild your life.
People sleep at night with more risk than they think of.
October 12, 2007 at 12:20 PM in reply to: how big of a mortgage will i be able to afford if ……. #88501ParticipantCBad,
Let’s present this another way.
2 scenarios
You live in Louisiana. Are you more comfortable having no payment on your home because you have it paid off but have little or no savings becasue you worked you ass off to pay the home off and reduce the interest expense
Or
You have 300 or 400 k in the bank and a 2K a month payment and you are living in a nice place hurt by the fact that you lost you possession but comfortable with the fact taht you ahve plenty of money to rebuild your life.
People sleep at night with more risk than they think of.
ParticipantLiberty Staion is going to be very sticky on the way down. A lot of smart money got in there early. McMillan and many friends and family have been well counseled. They are sitting on huge amounts of equity and if they are not cash strapped they do not have to sell.
ParticipantLiberty Staion is going to be very sticky on the way down. A lot of smart money got in there early. McMillan and many friends and family have been well counseled. They are sitting on huge amounts of equity and if they are not cash strapped they do not have to sell.
October 10, 2007 at 7:56 PM in reply to: So you still think that a 50% correction or more is crazy??? #87945Participantpatientlywaiting
“I think that a 50% nominal drop is very likely.”
I think you need a refresher on statistics. If you think a 50% drop is likely, what then would be unlikely drop, 75% or 80%. A 50% drop is statisticly an unlikely event. Not an impossible event but highly unlikely. It would fall as an oulyer in any sort of standard deviation curve.
Mount Soledad is collapsing and it is not seeing this type of drop so I think your numbers are off.
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