Essential Economics for Politicians

messy said:
You’re an idiot. You pay off a house so you can then borrow the money you just paid in? Did you really say that?!!!
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Yes. Because unlike you, my interest rate is 3.99% to start while you start at 26%. I get a lower interest rate while retaining access to an additional 250k that you allowed me to have at 100% CLTV. A bank would never do that. But a Fries U grad would. What a deal! Best deal yet!!
 
messy said:
14 posts above, as a reminder for all to see.

Instead of paying deductible interest on your loan, you would pay off a house so you could then borrow that same money against the house, at non-deductible interest.

You win!
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A $4100 deduction a year does nothing for someone in the max income bracket. Poser.
 
messy said:
You’re an idiot. You pay off a house so you can then borrow the money you just paid in? Did you really say that?!!!
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Actually you really said that in your post about “owning” equity that you have to pay 41k to borrow!! This is more fun than I should be allowed to have.
 
Bruddah IZ said:
Yes. Because unlike you, my interest rate is 3.99% to start while you start at 26%. I get a lower interest rate while retaining access to an additional 250k that you allowed me to have at 100% CLTV. A bank would never do that. But a Fries U grad would. What a deal! Best deal yet!!
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We both pay off our loan at term, I spend less money.
You pay off your house early, I make more money with my available capital.
Either way I end up with more than you..see how that works?
I do own a third house though. I used my available capital because I wasn’t stupid enough (ahem) to pay off my other houses.
It’s in another state. I own it outright. It was 525K. It’s a rental. I make 25% net/net on my money every year.
I don’t expect you to keep up at this point.
You win!
 
messy said:
We both pay off our loan at term, I spend less money.
You pay off your house early, I make more money with my available capital.
Either way I end up with more than you..see how that works?
I do own a third house though. I used my available capital because I wasn’t stupid enough (ahem) to pay off my other houses.
It’s in another state. I own it outright. It was 525K. It’s a rental. I make 25% net/net on my money every year.
I don’t expect you to keep up at this point.
You win!
Click to expand...
With a HELOC I am not tied to the same terms as an amortized loan. At a minimum I can make interest only payments if I want. Or I can pay it off in chunks to accelerate repayment to save tens of thousands in interest without early repayment penalties. You don’t get what a HELOC is do you? It’s like a credit card on steroids with an asset to back it up. You don’t get that an early pay back at 22% less interest frees up equity to create additional wealth throughout your 10 year death pledge
 
Bruddah IZ said:
With a HELOC I am not tied to the same terms as an amortized loan. At a minimum I can make interest only payments if I want. Or I can pay it off in chunks to accelerate repayment to save tens of thousands in interest without early repayment penalties. You don’t get what a HELOC is do you? It’s like a credit card on steroids with an asset to back it up. You don’t get that an early pay back at 22% less interest frees up equity to create additional wealth throughout your 10 year death pledge
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I "get" all of it...I have about $6m in unsecured credit lines from 3 different financial institutions because they like the way I handle my money. Of course one can always accelerate mortgage payments too, if they want...but that would be an inefficient use of capital, as I have tried to explain here, but I give up.
 
messy said:
I "get" all of it...I have about $6m in unsecured credit lines from 3 different financial institutions because they like the way I handle my money. Of course one can always accelerate mortgage payments too, if they want...but that would be an inefficient use of capital, as I have tried to explain here, but I give up.
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Lol!’ Financial institutions donʻt give multiple lines of credit for $6m to somebody who finds CLTV complicated. Poser.
 
Bruddah IZ said:
Lol!’ Financial institutions donʻt give multiple lines of credit for $6m to somebody who finds CLTV complicated. Poser.
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Right. I’m lying.

As I have told you repeatedly, the fact that you (a) disagree with my analyses and then (b) are so dumbfounded by my financial realities that you have to deny them should prove to you the need to change your thinking. You’re way lost in the weeds on this stuff and can’t see the forest at all.
 
messy said:
Right. I’m lying.

As I have told you repeatedly, the fact that you (a) disagree with my analyses and then (b) are so dumbfounded by my financial realities that you have to deny them should prove to you the need to change your thinking. You’re way lost in the weeds on this stuff and can’t see the forest at all.
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Lol! Tell me about how youʻre getting rich on deductions again.
 
Bruddah IZ said:
Yes. Because unlike you, my interest rate is 3.99% to start while you start at 26%. I get a lower interest rate while retaining access to an additional 250k that you allowed me to have at 100% CLTV. A bank would never do that. But a Fries U grad would. What a deal! Best deal yet!!
Click to expand...

Where did "26%" come from?
 
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