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Strategies & Market Trends : Mish's Global Economic Trend Analysis
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To: yard_man who wrote (1869)3/12/2004 1:24:35 PM
From: mishedlo  Read Replies (2) of 116555
 
you are a going concern -- why not -- roll the stuff over perpetually. That's what we do in the utility biz ...

I am a going concern?
WTF

As for why not roll it over....
From what to what?

OK - Here's the deal I am going for.
It is actually thru Merrill Lynch.
I can get 1 3/4 over Ibor rates.
That is 1 3/4 + 1 1/4 = 3%
This compares favorably with variable rate with a 3 year lock at 4% or fixed rates near 5%

I have 40% lower borrowing costs than a fixed rate with the following features.

1) Loan is simple interest
2) I ONLY have to pay the interest - if my wife loses her job or whatever, our max payment is less than 1/3 of what it is now
3) Interest rates recalculated very month and that can be good or bad or neutral. I will call it neutral although I think the next move from the FED is a cut. At any rate it takes 2 points in hikes before we are back to current fixed rates. Two points are NOT gonna happen IMO.
4) Any amount paid above minimum payment AUTOMATICALLY goes against principal
5) As principal is paid off, the minimum payment AUTOMATICALLY adjusts LOWER every month
6) Our strategy will be to pay as much as we are now every month, but if something happens to Joanne's job it will be nice to ONLY have to make the interest payment
7) This is a no points loan
8) Every month you get a statement showing current balance, current interest rate, and minimum payment due

If anyone wants contact info give me a PM

Mish
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