Essential Economics for Politicians

messy said:
Your analysis works for a deal that has like a 5-year window. The point of a mortgage is that you can buy something expensive and take a really long time to pay it off. Yes the bank wins but so does the buyer, if he buys in a good area or a rising area. Nothing like real estate appreciation.
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5 year window? Show me.
 
Bruddah IZ said:
Show me how you benefit from not using your equity to pay off your 30 in less than 1/3rd the time, while paying double digit interest until your 320th payment.
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1. The taxpayers bear half my interest, so that money costs me 50% of what I pay.
2. The money I am not spending on my house earns me about 7% per year, compounded., whereas the house appreciates less than that BUT I KEEP 100% OF THE APPRECIATION ANYWAY.
3. So why on earth would I take all that money and put it into my house? I would get poorer.
 
Bruddah IZ said:
oh boy. Just when I thought You couldn’t do better than “collateralized debt is an asset” you come up with the above. There is no amortization in a HELOC. Not that fries u teaches you that. No wonder you don’t enjoy the return on equity that I do without selling.
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So there is a 30-year time frame to pay off a HELOC? In that case, yes it’s a better deal than a mortgage. But check your premise...I don’t think there’s a 30-year HELOC.
 
messy said:
1. The taxpayers bear half my interest, so that money costs me 50% of what I pay.
2. The money I am not spending on my house earns me about 7% per year, compounded., whereas the house appreciates less than that BUT I KEEP 100% OF THE APPRECIATION ANYWAY.
3. So why on earth would I take all that money and put it into my house? I would get poorer.
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messy said:
So there is a 30-year time frame to pay off a HELOC? In that case, yes it’s a better deal than a mortgage. But check your premise...I don’t think there’s a 30-year HELOC.
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Man are you an Idiot....

I'll bet you pay your mortgage with " Borrowed " money like the
Creepy Porn Lawyer was doing too.....
 
messy said:
1. The taxpayers bear half my interest, so that money costs me 50% of what I pay.
2. The money I am not spending on my house earns me about 7% per year, compounded., whereas the house appreciates less than that BUT I KEEP 100% OF THE APPRECIATION ANYWAY.
3. So why on earth would I take all that money and put it into my house? I would get poorer.
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Lmao!
1. No, they don’t bear your interest. Your interest is a deduction not a tax credit.

2. The money that you are spending on your interest alone is easily in the double digits which cancels out your 7% per year. You don’t get to keep 100% of the the appreciation because of interest and inflation over the life of the loan.

3. Because an amortized loan is for suckers.
 
messy said:
So there is a 30-year time frame to pay off a HELOC? In that case, yes it’s a better deal than a mortgage. But check your premise...I don’t think there’s a 30-year HELOC.
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Simple interest = HELOC. Amortized interest = mortgage. Now tell me why HELOCS are not 30 years.
 
Bruddah IZ said:
Simple interest = HELOC. Amortized interest = mortgage. Now tell me why HELOCS are not 30 years.
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Because banks don't offer them for that duration.
Do you really think you're the smart guy who recognizes that a short-term, fixed-interest loan is better than a mortgage when buying real estate to hold? That's funny.
 
messy said:
Because banks don't offer them for that duration.
Do you really think you're the smart guy who recognizes that a short-term, fixed-interest loan is better than a mortgage when buying real estate to hold? That's funny.
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It’s so simple that smart guys like you don’t get it. How can a guy that cheer leads appreciation/equity be so ignorant about HELOCS?
 
Bruddah IZ said:
It’s so simple that smart guys like you don’t get it. How can a guy that cheer leads appreciation/equity be so ignorant about HELOCS?
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So I can get a 30-year HELOC on simple interest terms instead of a mortgage? Wow! Done.
You're so smart!
When your acid wears off, show me where I can get such a loan! Or maybe you can't, because there's no such thing?
 
messy said:
So I can get a 30-year HELOC on simple interest terms instead of a mortgage? Wow! Done.
You're so smart!
When your acid wears off, show me where I can get such a loan! Or maybe you can't, because there's no such thing?
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I'm open-minded, though, so if you can sell me a product that gives me a fixed term loan at similar interest and I can replace my amortized loan with that, I will look at it.
The issue remains deductibility.
 
messy said:
I'm open-minded, though, so if you can sell me a product that gives me a fixed term loan at similar interest and I can replace my amortized loan with that, I will look at it.
The issue remains deductibility.
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Nobody that runs a successful business would think or say the things you do. You sir, are a poser. As always.
 
messy said:
So I can get a 30-year HELOC on simple interest terms instead of a mortgage? Wow! Done.
You're so smart!
When your acid wears off, show me where I can get such a loan! Or maybe you can't, because there's no such thing?
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Of course there is no such thing. Who said there was?
 
messy said:
I'm open-minded, though, so if you can sell me a product that gives me a fixed term loan at similar interest and I can replace my amortized loan with that, I will look at it.
The issue remains deductibility.
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Already laid it out for you. Did you even locate where you are on the amortization schedule according to your current balance?
 
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