"DSK" wrote in message
...
NOYB wrote:
And you have a fixed rate for that 30 years, right? It'll never never
never go above 6%, right?


Yes. Wells Fargo is now offering a 30 year fixed rate interest only
loan. The rate that they quoted me was in the mid 6% range.



Tell you what.
Spreadsheet the difference between 6% and 6.5% over 30 years, then get
back to me.


It's interest only. Even *you* can figure out the monthly payment without a
spreadsheet:

Loan value * interest rate/12=monthly payment

At 6.5%, the payment is $5416.67/month. The total of the payments for 30
years is $1.95 million...which is still less than the 3 million in
equity...leaving you with a net gain of $1.05 million.


And you don't have to pay taxes on that "appreciated" property, right?


Can't go up more than 3% every year thanks to Save Our Homes Act.

And do the math on 3% compounded over 30 years too.

The increase is peanuts compared to the figures that we're talking about.
Remember that you're still $1.05 million ahead of the game before you start
counting taxes. Even in the worst case scenario, the taxes eat up less than
half of that amount.