"NOYB" wrote in message
k.net...

"Harry Krause" wrote in message
...
P Fritz wrote:


Why is it liebral types cannot understand the "cost" of money. If
you
can
borrow at a net cost of 3-1/2%, and you can invest at a average return
of
6-7%, you should ALWAYS have a max. mortgage.


Some of us don't view the house we live in as an "investment." I've
structured my residential financing so that if I FOAD, my wife will not
be
faced with much of a mortgage, even though she earns a good income. That
way, she can decide what to do...stay, sell, whatever.

I started out with a fairly typical 70% of appraised value mortgage on
this house a few years ago. Thanks to incredible appreciation, my
mortgage
is now about 35% of appraised value.

And my mortgage is 75% of appraised value. Last year, it was 95%. In
five
years, it will be 50%...and I will not have spent a dime on Principle.

Harry is proof that liebrals don't get it. There are other vehicles for
protection...i.e mortgage insurance.
THe fact of the matter remains, that if your net "cost" ofr money is only
3-1/2%, and you can invest at a 6-7% return, you are crazy to pay off the
3-1/2%