Sundance Kid
Recycles dryer sheets
- Joined
- Nov 23, 2005
- Messages
- 195
About renting, after retirement? I just can't see, having to get another 30 year mortgage, at 65+.
I'm not suggesting that anyone else should follow in my footsteps.fireme said:For most people none of these apply.
Yeah, I notice Intel is having a "rebranding" sale this week... ouch.() said:And man, was it a great idea or what to pay off a couple of mortgages and some other debt in 2000 rather than invest the cash I got from my last stock options sale? I'd still be looking up from a hole in the ground right now if I'd tried the 'arb' route.
Nords said:Yeah, I notice Intel is having a "rebranding" sale this week... ouch.
fireme said:I skimmed that thread... good stuff. It sounds like the main point Nords is making is that a 30 year mortgage at historically low rates is a good way to arbitrage against bonds or other rates that Nords thinks will be higher in the future.
The problem with this line of reasoning to my mind is that the mortgage companies that set their rates also have the same thing on their mind. They wouldn't set their rates low enough that they lose money on the loan when held for the normal amount of time. They have priced in the likelihood that rates will rise over time.
HaHa said:This isn't really true. As long as there is a market for long term debt, mortgage companies will make and then sell loans. The ultimate holders usually will have institutional reasons for needing or wanting debt with the characteristics offered- such as liability matching, etc. IMO, there really is no "efficient market price discovery mechanism" that has any relevance to someone trying to predict inflation.
fireme said:The buyers of the mortgage debt are the "efficient market price discovery mechanism" because they consider the future effects of inflation in deciding what terms they will buy.
azanon said:Dave Ramsey - "The borrower is slave to the lender"
Not sure about other areas, of the country, but here in the north Dallas area, the equation has to factor property taxes, homeowners insurance, utilities, yardwork, pool upkeep, property maintenance, and the miscellaneous costs of fire ant killer, etcazanon said:What's the difference between "tying up" as fireme put it, 147K into a house I own, and paying a 900 dollar mortgage cause I dont own one. You guessed it! In the latter case, i have a 900 payment i dont have if i own a home AND i pay interest too. Weee! That dont sound so smert!
Azanon
..and if you're renting, do you think those expenses are somehow not included in your rent Insurance goes down for owner-occupied units.the equation has to factor property taxes, homeowners insurance, utilities, yardwork, pool upkeep, property maintenance, and the miscellaneous costs of fire ant killer, etc
ladelfina said:I
I wouldn't want to spend my life thinking about whether I could paint the walls anything but "rental off-white", whether I could put a nail in the wall to hang a picture, whether I could have a pet, whether I could have a backyard BBQ, how long I can stand to look at the tired and stained "Berber"! carpeting since the landlord sure as hell's not gonna replace it until I move out nor is he going to re-paint, even if I've been there 10 years... etc., etc.
Dave Ramsey is mostly an idiot!