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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (55471)	10/1/2001 2:55:14 PM
From: James F. Hopkins	Read Replies (2) \| Respond to of 94695

Unless a person has long term bonds paying more interest than the interest he pays on a mortgage , if he is in the stock market he is in effect on margin. ---------- The odd thing about cheaper mortgages is at first they seem to stimulate home sales and real estate goes up, down the line when interest rates do go up the opposite happens hence the housing market goes from a sellers market to a buyers market as prices fall. The people who got low interest loans based on the "price" of the home at the top of the market, find out that the low interest wasn't so low if they apply it to a "price" that drops 10% ,20%, or 30% or more. Even with a 10% drop in home prices , the long term effect is that 10% of that loan turns into hot air and that hot air is the last thing paid off, compound the interest on that hot air for 30 yrs and add that to a so called low interest to get the real interest rate. I went through all this crap years ago when we had two or three prices on any house we sold depending on what type of loan you wanted. The VA loans sold the most and had the lowest looking interest but they were the worst kind to get locked into, as the hot air in the price was the most. Jim