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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: dave rose who wrote (5920)10/5/2002 2:17:02 PM
From: patron_anejo_por_favorRead Replies (1) of 306849
 
<<That is exactly what I am doing. Took out a 30 year mortgage on my paid up house. What to do with the money is my problem. Interest rate was 6% no points, no closing costs. I hope to pay this back in cheap dollars. There is an added benefit at tax paying time. My thinking may be a$$ backwards. Am looking for comments.>>

In a nutshell, you're making a bet on inflation. The problem will be if rates stay low, and we have prolonged deflation where alternative uses for the money (stocks, bonds, business ventures) produce less than the interest you are paying. Seems to me you could accomplish aome of the same objectives with a home equity line of credit, without putting yourself on the line if conditions remain deflationary, the main difference being that your loan has a fixed rate and lines of credit are usually adjustable. Hope it works for you, in any event....
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