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To: Jacob Snyder who wrote (29301)	10/13/1999 2:20:00 AM
From: michael r potter	Respond to of 99985

Re:leveraging home. Faced with the same decision 3 1/2 yrs. ago, I almost took the logical route and mortgaged the house. Instead, I opted for no mortgage and less resulting "leverage" from the funds taken out of the market. Despite very good market years since [unrepeatably good!], I have had not one moment of regret. For one thing no debt of any kind makes for a much better emotional environment for decision making-especially for one who makes a living at this. Besides, if stocks, bonds, or any asset class gets totally flattened, that equity is always there for possible use-but because of the mind set of "total ownership", equity is not likely to be pulled out on a whim. Maybe not for everyone, but a ringing endorsement from here, despite the apparent lack of hard # historical logic. Also remember, with no interest deductions, and few other deductions one still benefits from the standard deduction, so one needs to compare that bogey to the after tax cost of borrowing for home ownership. RE: more conventional leveraging whether margin or options, before this cycle is complete, the majority will rue the day they ever heard about it. A few that truly understand them and use them like specialized tools in a tool-kit, will build a grand house. Just not the majority. thanks, Mike

To: Jacob Snyder who wrote (29301)	10/13/1999 7:46:00 AM
From: Benkea	Read Replies (1) \| Respond to of 99985

Jacob: First, no I don't consider an 80/20 LTV "leveraging" your home. I own my home outright, but I do have an 80/20 on a rental at 6 1/4% 30 yr fixed (obtained last summer - perfect accidental timing - with 3.75 pts). FWIW, upon my one year anniversary of ownership on 8/1/99, I raised (and got) the rents 20% on the property while the monthly nut is (and will remain) the same. Second, I think anytime they are giving you money sub 7% (and tax deductible) for 30 years fixed, it is hard to turn it down. You can get more than 6 5/8% out a CD while you wait for rates to rise. I think you'll be able to buy 10% CDs in the next 5 to 10 years minimum and pocket the risk free spread. Of course, there are other much higher return ways that entail slightly more risk as well.

To: Jacob Snyder who wrote (29301)	10/13/1999 8:23:00 AM
From: TimbaBear	Respond to of 99985

There is a big difference between deciding not to liquidate a portfolio as you did and what was claimed by the poster I was responding to. That poster claimed people were refinancing their homes to play the market, that's an entirely different head-state. When people in your position ask me for advice, I tell them that unless they believe they can consistently earn a rate of return significantly higher that the interest rate on the mortgage, it makes more sense to pay more against the house....Since I am on commission, I am talking myself out of income by that advice, but good advice is good advice and I sleep well.