"Mike Coslo" wrote in message
...
Ryan, KC8PMX wrote:
If your interest rate is less than 5%, the best loan to get is a 30
year!
It's cheap money. Paying off a house quick is foolish. And the monthly
rate is usually a hell of alot less too. Spend the difference of that
paying off bills or invest it in a mutual fund or something.



Ahh, a financial truism! This belongs with:

The stock market ALWAYS goes up!

What goes up must come down as well too. But that is the beauty of the
stock market. It is a cyclical thing. Ideally it would be like a good
sinus rhythm. It is just merely the knowledge of where to jump in at.


(It soitanly do, but over long time periods that are not relevant to
most of us who don't live over 150 years. More importantly it is what
the market is doing around the time you take your money out.)

Move your money into high yield accounts shortly before you retire, that
way you'll have more money when you retire!


Only if you know what you are doing and have a really good grasp of the
market.



I've listened to investment consultants actually pull this one out of
their hats. I know some older folk who have done this and now have
almost no retirement funds.


Yep... not for the weak or feable to try on thier own if not knowledgeable.



I have to chuckle at your truism. first, because your friend the real
estate agent uses those sort of arguments to talk you into buying
several thousand or tens of thousands more dollars worht of house.
Second is that You are saying a person who gets out of debt is foolish.


Actually the person I got this truism from and believe in it is Bruce
Williams, the talkshow host. If you do the math, it is fairly true.



Best way to not be a fool is to not go heavily into debt in the first
place. I have a 5 percent loan, but I'll pay it off quickly, I think.

I wouldn't but thats me. What I would do is see if you can refinance at all
to a lower rate. I have actually seen a interest rate recently somewhere in
the 3 percent range!! Talk about a cheap loan, hell, I would
refinance/remortgage my neighbors house if I could legally get away with it!
LOL



Instead of paying off that low interest loan quickly, one is smarter
paying
off the higher interest loans like automobiles, department and credit
card
charges, and other loans/debts.

Again, it's better to not get into a situation where you would have to
choose which loan you're paying off early.

Well, its not paying the principle that kills ya, its the interest that does
over a long time. The lesser the interest rate, the less I am interested in
rushing to pay it off extra early. Either way, one needs to do the math or
find someone who does understand real estate finance and other financal
calculations to make sure in their own individual circumstances.



--
Ryan KC8PMX

"All of us could take a lesson from the weather. It pays no
attention to criticism."

"Phil Kane" wrote:
Dwight Stewart wrote:

Hey, when did you move to Oregon, Phil? You
were in SF the last time we talked, weren't you?
If so, you move more then we do.

September 1999 - four years ago. Last major move
before that was to the SF area in 1967.


Well, I know we've talked more recently than four years ago. I guess I
just didn't know about the move. Anyway, we considered moving to the Grants
Pass/Medford/Ashland area a few years ago, or perhaps even Coos Bay (in
other words, the Southwestern part of the State). In fact, we may still do
so - it's on the short list of possible places to move. I was in Sacramento
in 1967.


Dwight Stewart (W5NET)

http://www.qsl.net/w5net/

"Mike Coslo" wrote:

It's not as lucrative as you make it sound, Dwight.
Also, these people are reasonably well off, retiring
with money equivalent to upper middle class or
better. (snip)


I have no idea how lucrative it is. An acquaintance (hard to call this guy
a friend) works for a mortgage company and just loves to talk about the
shady side of that industry. The company he works for (a nation-wide
franchise chain) just switched to more agressive foreclosure practices and,
based on the stories he tells, I most certainly would not want to be a
customer of that company. Of course, this company has always had
questionable (in my opinion) foreclosure practices. He told me years ago
(late 80's, early 90's) that, mainly because of increasing property values,
it was far more profitable to foreclose on older properties than to maintain
the mortgage. As such, the company used every opportunity to foreclose on
those mortgages. Today, according to him, long term mortgage foreclosure
offers the most gain. Therefore, they now actively seek those who have the
greatest possibility of foreclosure years from now, such as the elderly,
those with speading habits that suggest possible credit problems down the
road, and so on. Now, since I don't work in that industry, I have no idea if
this is entirely true or even widespread. But, I've seen enough written
about these types of practices to suggest there is at least some truth to
it.


Dwight Stewart (W5NET)

http://www.qsl.net/w5net/

"Ryan, KC8PMX" wrote

If your interest rate is less than 5%, the best loan to get is a 30 year!
It's cheap money. Paying off a house quick is foolish.

You've been brainwashed!!!

Instead of paying off that low interest loan quickly, one is smarter
paying
off the higher interest loans like automobiles, department and credit card
charges, and other loans/debts.

Then there are the rocket scientists (NOT!!!!) who refinance their house,
grab some equity cash, and pay off the remaining 3 year loan on their SUV
that they really couldn't afford in the first place. Now they're paying for
30 years on a truck that will be 25-years in the scrap-yard before it's paid
off. Brilliant financial wizards!!!

73, de Hans, K0HB

Ryan, KC8PMX wrote:
Actually Jim, I think the things I am gonna mention are what are called
reverse mortgages.

My dad (going on 68) is contemplating taking both of his residences and
reverse mortgaging them. Apparently the bank gives him money ahead of time
for the value of the house (a little less than market value) and upon his
death, the property is immediately transferred to the mortgage company. I
may be a little bit off on the explanation but it is kinda my understanding
of how it works. I guess this way he gets the opportunity to enjoy the
money/value of the residences now, while he is still alive, as opposed to
leaving it to my sister and I.

Trust me, that is a better solution.

- Mike KB3EIA -

Yep. That's it. The bank loans him a little bit of money each month (or
whatever period) and adds it to the loan balance. If he lasts long enough
he will be paid the full amount of the house and the bank owns it.
Steve K;9;d;c;i


"Mike Coslo" wrote in message
...
Ryan, KC8PMX wrote:
Actually Jim, I think the things I am gonna mention are what are called
reverse mortgages.

My dad (going on 68) is contemplating taking both of his residences and
reverse mortgaging them. Apparently the bank gives him money ahead of
time
for the value of the house (a little less than market value) and upon
his
death, the property is immediately transferred to the mortgage company.
I
may be a little bit off on the explanation but it is kinda my
understanding
of how it works. I guess this way he gets the opportunity to enjoy the
money/value of the residences now, while he is still alive, as opposed
to
leaving it to my sister and I.

Trust me, that is a better solution.

- Mike KB3EIA -

"Mike Coslo" wrote in message
...
Ryan, KC8PMX wrote:
Actually Jim, I think the things I am gonna mention are what are called
reverse mortgages.

My dad (going on 68) is contemplating taking both of his residences and
reverse mortgaging them. Apparently the bank gives him money ahead of
time
for the value of the house (a little less than market value) and upon
his
death, the property is immediately transferred to the mortgage company.
I
may be a little bit off on the explanation but it is kinda my
understanding
of how it works. I guess this way he gets the opportunity to enjoy the
money/value of the residences now, while he is still alive, as opposed
to
leaving it to my sister and I.

Trust me, that is a better solution.

- Mike KB3EIA -

Reffering to the old man leaving money to the kids, versus enjoying it now??
He stated a long time ago, that my sister gets everything! Don't really
care as long as he doesn't leave expenses we might be liable for. I have
actually provided for myself since I moved out after I turned 18. Now if
others want to leave me in their will, that is just fine HIHI!



--
Ryan KC8PMX

"All of us could take a lesson from the weather. It pays no
attention to criticism."

In article , "Ryan, KC8PMX"
writes:

Actually Jim, I think the things I am gonna mention are what are called
reverse mortgages.

My dad (going on 68) is contemplating taking both of his residences and
reverse mortgaging them. Apparently the bank gives him money ahead of time
for the value of the house (a little less than market value) and upon his
death, the property is immediately transferred to the mortgage company. I
may be a little bit off on the explanation but it is kinda my understanding
of how it works. I guess this way he gets the opportunity to enjoy the
money/value of the residences now, while he is still alive, as opposed to
leaving it to my sister and I.

Yep, those are reverse mortgages, and they're a useful tool. Essentially they
let a person get the equity out of a paid-off house without selling it.

But there are certain things to check very carefully. For example, what
interest rate is used and what are the tax ramifications? What happens if,
heaven forbid, you dad signs the papers and passes away a few days/weeks/months
later? Or, what about just the opposite, if he outlives the mortgage? (I know a
93-year-old still active and living alone in his own, paid-off house).

There's also the issue of what happens if he has to go into a nursing home-type
situation somewhere down the road.

73 de Jim, N2EY

"Ryan, KC8PMX" wrote in message
...


People allow themselves to fail and become victims of circumstance.

Following that logic, then the people IN the WTC buildings are also as
well
then......


No it does not follow. The people in the WTC buildings were subject to
a
circumstance that no one could ever have even guessed might happen or
foreseen might happen. That was not within their power to prevent or
solve.

Dee D. Flint, N8UZE


According to your statement, an absolutism, yes they were in control.
THEY
chose to work in that building. THEY chose to go to work that day, not
calling in sick or taking a vacation day.



No you are misinterpreting my point of view. There was no data for them to
base a choice on so no choice was truly possible and there was no
possibility for them to control their fate. The WTC terror allowed no more
choice than a lightning bolt does.

However people who chose to stay on welfare instead of move when the local
economy in their area crashed, have chosen to fail. They have data. The
local business closed. They can evaluate or guess whether it will ever
reopen. They can choose to follow the jobs or they can choose to stay there
and be poor. There are still people in Portsmouth, Ohio waiting for the
steel mills to reopen. These mills closed decades ago yet people are still
waiting.

Dee D. Flint, N8UZE

"Phil Kane" wrote in message
.net...
On 17 Nov 2003 01:28:48 GMT, N2EY wrote:

Here's another one for ya: I bet neither of us would have any problem
getting a
30 year mortgage, even though we'd be nearly 80 when said mortage was
paid off
(barring any advance payments). Huh?

We got a 30-year mortgage four years ago notwithstanding that I was
retired on a moderate pension, my wife was an independent contract
employee close to retirement age, and both of us would be over 90
when it matured.

Not only that, we refinanced it last year starting a new 30 year
clock.

In reality we rent the place from Fannie May or Freddy Mac, whomever
wound up with the paper..... We know it, they know it.....


But there are advantages. As the owner (even though heavily mortgaged), you
can put up antennas or remodel or whatever without asking the landlord. And
since the interest is tax deductable, you can have a nicer place for the
same money than if it was just a rental.

Dee D. Flint, N8UZE