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To: TimbaBear who wrote (29289)	10/13/1999 12:17:00 AM
From: KeepItSimple	Respond to of 99985

>and I haven't seen one case of it yet....not one. Oh give me a break. There's a reason every third commercial during the market hours on CNBC is for a home refi 125% loan company. They know EXACTLY what their customers intend to use the extra 25% for.

To: TimbaBear who wrote (29289)	10/13/1999 12:21:00 AM
From: Casaubon	Respond to of 99985

just curious how you do accounting. If you have a 250K mortgage and you have a 100K stock portfolio, have you mortgaged the house to buy stocks?

To: TimbaBear who wrote (29289)	10/13/1999 1:49:00 AM
From: Jacob Snyder	Read Replies (3) \| Respond to of 99985

re: "leveraging their homes" 4 months ago, I moved and bought a home. Previously, I had rented. I seriously considered paying cash for the house. It would have given me a very satisfying and secure feeling to own my house and land outright. But, I would have had to sell a large fraction of my stock portfolio. So, I paid 20% down, and borrowed the rest (30Y fixed, at 6 5/8%). I was 100% certain that, in all conceivable futures, I could make better than 6 5/8% on my stock investments. So it made sense to leave the money in stocks, and borrow for the house. Would you count me as someone who is leveraging their home in order to buy (or in this case hold) stocks on margin? That's the way I look at it, and I think it was the rational decision. But it is only rational because the interest is tax-deductible, and the interest rate on my mortgage is well below what I can reasonably expect to average, over 30 years, in stocks. If I'd been buying a house in 1980, I would have paid cash.

To: TimbaBear who wrote (29289)	10/13/1999 7:38:00 AM
From: Benkea	Read Replies (2) \| Respond to of 99985

Timba: "You know, I've heard this a few times, and it might be true somewhere, but I'm a mortgage broker and a branch manager for a mortgage brokerage business, and I haven't seen one case of it yet....not one." Not only have I read several such admissions on the net, I personally know 3 people who have/are doing it, and I don't know an abnormally high number of people. The fact that people aren't telling you as a mortgage broker that they are gambling with leverage the proceeds of those loans does not surprise me <g>.