To: ladyjane
If played right, you can use the market to your advantage even on a downturn. I personally had about $160,000 in equity in my home, all of which I cashed out in a recent refi. That money is now safely invested in bonds that won't be going anywhere for a while.
I fully expect the market to plunge around here, and it is a very real possibility that I might lose my house in the process (my mortgage has a pull clause). If that happens, however, I'll have $160,000+ to buy a new home in the now glutted (and substantially cheaper) post crash market. I'll be fine, but the hordes of people who pulled their equity and sunk it into new kitchens or credit card debt are going to be screwed.
To: Arthalion
You have the money in bonds paying X% and you are paying Y% on your mortgage, where X is about 4 and Y is at least 5. Am I off?
139 posted on
08/22/2005 1:35:12 PM PDT by
palmer
(If you see flies at the entrance to the burrow, the ground hog is probably inside)
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