"Harry Krause" wrote in message
...
NOYB wrote:

Here's another way to look at it:

Suppose you live in a million dollar home, but have zero equity in that
home (ie--you owe 1 million dollars). In 30 years, that home is worth $4
million, and you owe still owe $1 million on it (ie--you had an
interest-only loan). You have $3 million in equity on the home. You
decide to take out $2 million of that equity, and put it in an investment
that pays a rate equal to what the monthly payment would be on the loan
(ie--you end up with a net monthly outlay of cash of zero). You can then
use the $2 million to live on.

A reverse mortgage does the same thing. It gives you the $2 million, but
amortizes it out over the life of the reverse mortgage. You're simply
taking the money in payments instead of a lump sum.


The older you get, the bigger the lever you're going to need.


That's true. But considering I'm only 34, I have plenty of time to begin
working towards debt reduction. I have just under 4 years before my
practice is paid off. Once that occurs, I'll have another $6k available in
pre-tax dollars each month that I can use to pay off the mortgage. I intend
to use $3k of that money to go strictly towards principle on the
loan...which means that I will have paid off the house in just under 27
years from now...or when I'm 61 years old.

And that still leaves another $1-2k/month for payments on my next boat.