Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: damainman who wrote (27956)	3/10/2005 8:09:49 AM
From: Tradelite	Read Replies (3) \| Respond to of 306849

Yes, but you didn't tell us what interest rates your brother-in-law was quoted for each of the different options he was offered. Or what the monthly payment is projected to be. And what are his housing alternatives in terms of rental costs. And, by the way, what type of collateral existed for the offer of a line of credit to buy a house? Or do you simply mean the lender offered a home equity line as a short-term secondary loan which would have piggybacked on a first-mortgage loan to buy the house (which has been pretty common for a long time)? My other question is whether you are forgetting, as I often do, that a $255K house at today's interest rates is a heck of a lot more affordable than it used to be. I bought a house in the late l970s for somewhat less than that price, but at an interest rate of 9.25 percent. When I finally paid off the loan (which, long before that time, I had refinanced into a 15-year, 7.25 percent), my monthly payment was less than $1800 per month (INCLUDING taxes and insurance). That is less than rent on a nice 2BR apartment would cost me today. And I wouldn't have Uncle Sam subsidizing my apartment, like he did with my mortgage payment.