Bruddah IZ
DA
They like counterfeit money. Financial misfits the lot of them.
Essential Economics for Politicians
- Thread starter Bruddah IZ
- Start date
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- finance too
Didn’t I already tell you that if I concerned myself whether idiots like you believe me or not, my annual income would decrease substantially?
It’s clear that I know you don’t do very well and that you are alarmed by my financial success.
Therefore, you should change your thinking.
Sheriff Joe
DA
I hope your financial decisions are better than your political ones.
Bruddah IZ
DA
There’s income. Then there’s how much you get to keep. I’m happy to watch you get rich on deductions. Lol!
So here’s some math which you won’t do because it exposes you.
1. You own 50% equity in a house worth $500,000 and you borrow 250K with a HELOC, 4% simple interest, 10-year loan.
2. I own 50% equity in a house worth $500K and I borrow 250K with a mortgage at 3.1% and I’m in the 45% tax bracket.
In 10 years, who paid more for the same house?
Answer: you, by far! My interest rate was effectively less than 2% so you paid a lot more!
But you’re the smart guy who buys his house with a simple loan instead of a mortgage. Wow.
Your turn!
You can go in the other room and change your diaper, your
piss is overwhelming the sodium polyacrylate .
A. I don't see BI over encumbering his property.
B. You are the epitome of a butt sucking " Credit Card " Whore....
Bruddah IZ
DA
Q
Lol!! I just wiped out 41k in interest in one payment on the rest of my mortgage of 250k. Thanks for the generous terms.
So you paid much more than I did for the house if you had a 10-year HELOC and I had a 10-year mortgage, because you paid twice as much interest.
That’s a fact, isn’t it?
I know that’s a tough question.
Bruddah IZ
DA
No. You assumed I took 10 years to pay it off. I didn’t.
Bruddah IZ
DA
In addition, it took you ten years to get access to the additional 250k in equity. You gave me the terms to get it in one day. In reality, the bank only lends 70% CLTV on HELOCS. So my HELOC could only be for 100k for the 500k valued house. But you already knew that. Lol!
Im glad you mentioned that, because that brings us to the next level of your flawed analysis.
When you spent that extra dollar on that house, earlier than required by the loan, what did that “buy” you? It bought you more ownership of something that appreciated, say, 3-4% per year?
I obtained the same appreciation without spending that dollar. That’s my win #1.
Furthermore, I took that extra dollar that you used to buy more equity in the house and instead I invested it in a bond and/or an equity which, based on my last 20 years or so, earned me 7%. That’s my win #2.
See how simple that is? It’s not that you’re dumb, you’re not. You’re (a) overly concerned about the other side of the transaction (I like win/win), (b) overly complicated in your thinking and (c) fearful.
See above. You’re too complicated, son.
Bruddah IZ
DA
Oh and Btw, you don’t own the equity if you’re asking the bank to borrow it. At a cost that is.
Bruddah IZ
DA
Soooooo simple. I didn’t pay a cent of the 41k in interest that you paid on your amortized loan and got access to an additional 250k to buy another house in addition to the 3 to 4 percent appreciation on the first house.
Bruddah IZ
DA
You find that complicated? Lol! Thought you were the HELOC King. Poser.
Bruddah IZ
DA
Funny how you consider paying 41k in interest a win. And don’t forget that whopping 4k a year deduction. Lol!
Bruddah IZ
DA
Uhhhhh.......your #1 win of 41k in amortized interest cancelled out your #2 win because you were actually paying interest on your amortized loan in excess of 7% percent for the first 7.5 years of your 10 year loan. Lol!
Bruddah IZ
DA
This is our most classic exchange yet.....SON. Are we done here? Off you go to make your millions. Lol!! Fries U! What a deal.
Bruddah IZ
DA
Silence
Hüsker Dü
DA
Some people do work at their jobs.