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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: SteveC who wrote (105830)	4/16/2000 5:52:00 PM
From: chic_hearne	Respond to of 1573901

Re: Thanks for the advice Joe. I'll run it by my accountant before I make any decision. Steve, If you were serious about buying a house with cash, there is another alternative. My guess, the market volitility makes you think that your huge gains could disappear leaving you with a huge mortgage. So you wouldn't feel bad taking the profits and "buying" a house. That way, in a sustained downturn, at least you would already own your house. If that's what you want to do, I would suggest taking the loan for the maximum amount they would give you. Then take the money that you would've used to pay for the house and put it in bonds. You can use the coupons as as fixed income to make your mortgage payments. Thus, you will have the security of knowing you won't have to worry about making your payment as if you had paid cash for the house. This tax savings from the interest from the mortgage combined with the coupon payments from the bonds will provide you a better rate of return, along with giving you security in your home purchase. I'd suggest bringing this up with your accountant. I talked a little with my accountant about this strategy, but I'm still a ways off from making a move like this. chic PS- Let me know what your accountant says if you talk about a strategy like this.