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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (12228)	4/19/2004 8:49:45 PM
From: mishedlo	Read Replies (3) \| Respond to of 110194

I don't. It floats every month. But consider the advantages. 40% lower borrowing costs (initially) It will take 2 points of hikes which I really doubt are coming for reasons stated just to put me back to even. Loan is interest only (that is all that is required but not all I intend to pay). Current payment is 1440 new payment at 3% is about 550 (of course that assumes it will stay there). After 10 years it turns into a 15 yr adjustable (must be paid off in the next 15 years). The huge advantage to us right now is that my wife just lost here job. This house would be gone without this deal. We are not over-leveraged, no credit card debt, 70% equity in the property, and a bunch of cash in a MM fund. Long term I am convinced we are in a period of huge deflation based on jobs leaving the US and debt levels everywhere. If the FED hikes 2% they will be cutting with a vengance to zero% to fix the problem just like Japan did IMO. This economy can not take a 2% hike and I think we head into a recession whether or not a hike comes or not. Mish