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  #46  
Old 03-18-2015, 09:22 AM
gratefulparrot gratefulparrot is offline
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Didn't say you aren't smart but I don't think I would take a substantial amount of money that returns 8+% to save 4.25%. That's giving away profit....and opportunity and cash flow. If it works for you great......just doesn't work for me.
Again educate me. If I pay the bank interest, how do I gain 8+% profit, versus the investment of what I would have paid in interest to the bank and investing that in a mutual fund?
  #47  
Old 03-18-2015, 09:53 AM
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Challenger Challenger is offline
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Didn't say you aren't smart but I don't think I would take a substantial amount of money that returns 8+% to save 4.25%. That's giving away profit....and opportunity and cash flow. If it works for you great......just doesn't work for me.
Where do you get a "secure""guaranteed" investment of 8 per cent(net)???

when you pay off a 4.25percent mortage, you have secured a 4.25percent(absolutely guaranteed) gain.
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  #48  
Old 03-18-2015, 10:07 AM
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We have no mortgage. One less thing to worry about.
  #49  
Old 03-18-2015, 10:17 AM
llaran llaran is offline
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Default mortages

Talk to George at TrustCo bank, they hold there own paper, no escrow, no closing costs. Located near Home Depot on 441.
  #50  
Old 03-18-2015, 11:02 AM
JoMar JoMar is offline
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Again educate me. If I pay the bank interest, how do I gain 8+% profit, versus the investment of what I would have paid in interest to the bank and investing that in a mutual fund?
My investment portfolio generates 8+% which is cash, money, profit. I pay the bank 4.25% interest on my mortgage which gives me a net on the positive side of a minimum 3.75%. It depends on how your portfolio performs and your age. I took a 30 year mortgage which means I will be dead for many years as will my wife so we will never pay more than the payoff at death of the principle. Hey, everyone has a different view of security and how to handle their money so I'm not making a judgement on anyone just stating that in my opinion. If you can net positive cash flow take advantage of it and at our age, use the cash flow to enjoy life, Don't reduce the value (or the ability to increase the value) of your portfolio's by not having manageable debt. Just my opinion.
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  #51  
Old 03-18-2015, 11:21 AM
The Buckeyes The Buckeyes is offline
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We use a credit card for almost 100% of all our monthly purchasing/living expenses.
We use Citi Banks Double cash rewards card.

One percent credit for evey dollar spent. Then one more percent when it is paid off. As we never carry a balance and pay it off in full each month there is an effect of 2 percent credit per month. And unlike most other reward cards there is no limit to the accumulated credits. Which can be redeemed for cash or merchandise or other stuff.

Depending on one's monthly living expenses there is a fair amount of cash back at the end of each year. One does not spend any more than if they were paying cash for everything.

There are many other benefits like charging travel, extended warraties on merchandise paid for with the card.

I believe in the old saying pennies make dollars. And in this case dollars make more dollars.
Have been using a credit card to pay for most things for the past 23 yrs. Get cash back and it is always wise to use someone else's money! But, you must be disciplined to pay off the full balance every month, we have the payment made from our checking acct that way we are never late!
  #52  
Old 03-18-2015, 11:21 AM
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Originally Posted by JoMar View Post
My investment portfolio generates 8+% which is cash, money, profit. I pay the bank 4.25% interest on my mortgage which gives me a net on the positive side of a minimum 3.75%. It depends on how your portfolio performs and your age. I took a 30 year mortgage which means I will be dead for many years as will my wife so we will never pay more than the payoff at death of the principle. Hey, everyone has a different view of security and how to handle their money so I'm not making a judgement on anyone just stating that in my opinion. If you can net positive cash flow take advantage of it and at our age, use the cash flow to enjoy life, Don't reduce the value (or the ability to increase the value) of your portfolio's by not having manageable debt. Just my opinion.

Bull markets don't last forever. Eventually someone needs to pay the piper. It ain't gonna be me.
  #53  
Old 03-18-2015, 11:40 AM
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Originally Posted by TrudyM View Post
Situations alter cases. If you have a loan on your current home then getting a loan on your new home may be tricky as they look at three things mostly.
1. Total payments a month as a % of income.
2. Total indebtedness to net worth.
3. Stability of income stream and liquidity.
Also Retirement accounts are not considered security as they can't touch them under a lot of state laws (don't know about Florida)

We have a huge loan on our current home so a mtg to purchase down here was totally out of the question. We discovered that our Brokerage firm had a thing called a Portfolio loan that had a low interest rate and that could be fixed or a variable rate option. It is a loan against the stock in your account but can not be taken out against a 401K rollover or IRA account only straight brokerage. The interest rate is half that of current margin so a much better deal than a margin loan and works like a home equity line of credit.

Just an option and good to know is out there so you don't have to sell stocks at the wrong timing if you need money in the short term.
We did something similar. Put up 39% of the mortgage price in stock using it as collateral. It has worked well and even though I can not sell the stock at his time....as soon as my principle owed is less than 80% of the purchase price the brokerage will free up my stock free and clear and that will happen next month on our home. During this period you still get to collect the dividends and the long term capital gains are low compared to ordinary income. The best of both worlds and did I mention the interest rate on the loan was way lower than a bank.
  #54  
Old 03-18-2015, 11:50 AM
gratefulparrot gratefulparrot is offline
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Originally Posted by JoMar View Post
My investment portfolio generates 8+% which is cash, money, profit. I pay the bank 4.25% interest on my mortgage which gives me a net on the positive side of a minimum 3.75%. It depends on how your portfolio performs and your age. I took a 30 year mortgage which means I will be dead for many years as will my wife so we will never pay more than the payoff at death of the principle. Hey, everyone has a different view of security and how to handle their money so I'm not making a judgement on anyone just stating that in my opinion. If you can net positive cash flow take advantage of it and at our age, use the cash flow to enjoy life, Don't reduce the value (or the ability to increase the value) of your portfolio's by not having manageable debt. Just my opinion.
I get what your saying. And congrats that you can score 8% on all your investments.

We just have different ways of looking at things. I want my house paid off for my kids and not die with a mortgage to pay off. Plus, I think whatever the mortgage/interest payment I would be spending while I'm alive, I can invest that into a IRA or Mutual fund to keep generating money while I'm alive. But that's just my line of thought
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