Home |
Search |
Today's Posts |
#11
|
|||
|
|||
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. The problem here is that you've already made payments on that interest-only loan that far far exceed your imaginary equity. Untill you sell it an pocket the cash, equity is nothing but a bubble. just like the stock market. BTW back in the late 1990s, there were plenty of articles in newspapers & investment magazines about how the stock market could never possibly go down. I'm still wishing you luck, NOBBY, apparently you have no clue you need it. DSK |
Thread Tools | Search this Thread |
Display Modes | |
|
|
Similar Threads | ||||
Thread | Forum | |||
Housing for the Katrina Homeless | General | |||
OT) Rice ignored direct warning | General | |||
Ping Pong Balls - Conclusion | Boat Building | |||
Mechanics / Boat Savy: Exhaust Manifold & Thermostat Housing | General | |||
Confused by OMC 4.3L thermostat housing | General |