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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: fatty who wrote (18827)	3/23/2004 1:38:44 AM
From: James C. Mc Gowan	Read Replies (1) \| Respond to of 306849

Question for any who care to respond: I have a house in Northern California, appraised recently at 450K, paid off mortgage 8 years ago. Now, I have an opportunity to invest cash out of this house and earn a good long term return @ 12%+. Don't plan on selling for about 5 years at retirement, but sooner if investments continue to outperform. I have looked at all types of mortgage offerings, and am leaning toward a 7 year interest-only ARM, but the 5 year IO ARM rate looks good and the 10 year, with a higher rate allows more time for dividends/distributions to grow. My thinking is to minimize the carrying costs for the loan, place the money into a 15% dividend tax rate category, get a deduction for tax/interest paid, and I won't be borrowing more than 70% of current market value, say about 300K. Don't require the money for anything but investing. Any suggestions as to current mortgage offerings that might be suitable? Also, it looks like amortizing points to get the lowest rate is the best option, assuming low closing costs would be offered. James