Some of the old rules for buying versus renting when you’re relocating are either outdated or don’t apply to everyone. Here are some new rules.
Effectiveness of “Borrow 30-Year and Invest The Difference”
A 30-year loan has lower monthly payments than a 15-year loan. See why investing the difference in monthly payments doesn’t pay off for a long time.
Paying Off Mortgage Did Not Lower My Housing Cost
The largest cost of owning a home free-and-clear is the opportunity cost of the money tied down to the home. Full cost of housing includes both cash expenses and the opportunity cost.
Extra Mortgage Payment: Do Dates Matter?
If you are paying extra toward your mortgage, does it matter which day you make the extra principal payment within a month?
Prepaying Mortgage Does Not Make You Invest More In Real Estate
Your home does not know you have a mortgage.
Your Savings Rate: Count Mortgage and Loan Payments?
Your savings rate determines how fast you build wealth. Should you count mortgage and loan payments as savings? We dive deep to the bottom of this debate.
Where To Get The Best Rate On A Home Equity Loan
Rates on home equity loans vary greatly from bank to bank. You have to know where to go for the best rates.
Is Home Mortgage Simple Interest Or Compound Interest?
I had a good chuckle while reading this epic discussion thread on the Bogleheads Investment Forum: Does a home mortgage use Simple or Compound Interest? It sounds a like factual question, as in "Is Miami located to the north or south of Boston?" The answer shouldn’t be ambiguous or subject to opinion or interpretation. You […]
Savings Secured Loan: Good Or Not?
I received an interesting offer in the mail from my credit union. It’s for a savings secured loan. The credit union offers to give me a loan if I pledge an equal amount in my savings account as collateral for the loan. If I pledge $10,000, they will lend me $10,000. If I pledge $50,000, […]
Payment Flexibility Insurance: Pay a 30-Year Loan On a 15-Year Schedule
Paying a 30-year mortgage on a 15-year schedule costs a lot more than getting a straight 15-year mortgage.
The Best Way to Refinance a Small Mortgage
A reader asked me about refinancing a mortgage. I gave him my usual spiel about getting a no cost refinance, stepping down the ladder, etc. I also gave him the short list of lenders I shop from: First IB, NMA, and AmeriSave. He came back to me saying he couldn’t get a no cost refi […]
Who Should Default On Their Mortgage
My first issue of The Atlantic magazine hasn’t come yet. I also subscribed to The Atlantic Business RSS feed. The online articles are free to everyone, not just print magazine subscribers. I read Why Shouldn’t People Just Default? and So When Should You Default on Your Mortgage? by Megan McArdle. Ms. McArdle is against strategically […]