Mortgage math question

[chuckwow]

This thread is 3 months old, just got bumped...

I agreed with the comment above.

You have what appears to be about 2/3 of your net worth tied up into your house?

If you are renting the house out, I might suggest a cash out refi where you move 500k or so into an investment which yields more than $18k per year ($1500/mo=$18k per year).

I would expect a higher return than 2% on renting house out. The best risk adjusted returns are higher than the 2% you receive on your mortgage... dividend paying stocks would be exhibit A, a conservative equity portfolio like Wellesley is exhibit B.

Thanks JimOh,

Like the post of NORDs' (just before your's), we are considering your words carefully. Nords also suggested getting away from the idea of renting the house out, especially from a million miles away, and we may decide we have to sell, but had hoped to keep it in our family.

Thanks very much for your thoughtful suggestion. Times change and we are prepared to change with them. Happy new year.

 

[Nords]

That's the one, Nords. His avatar was a TCU football helmet. You still over there? You helped me through a tough spot, Nords. I've thought about you many times since that time and forever will be grateful for the personal interest you took in my plight.
And Nords, I thank you again. You are a good man that I will not soon forget.

Glad I could help!

I still check in once a week. Raddr updated their software a few months ago and I'm having a hard time searching the archives. What's your poster name over there? You can send me a PM if you don't want to put the info on a post here...