Re: Re: Re: Re: 125% LTV 2nd: Good idea or bad? You're obviously fking ignorant. You read nothing correctly. Again, fk'ing ignorant. I make $130K a year. The debt is $45K. I *have* savings. I'm USING THEIR MONEY (0% financing, low fixed rates, etc.) to save from draining my savings. What can't you fk'ing read, a-hole? In the development (subdivision) I live in, each home has a minimum of 1 acre lot. In order to have grass (which we HAVE to do, per the By-Laws of the association), one needs to WATER all the time during the first season (after the seed is planted). What should I do, quit my job so I can stand in my yard all day with a hose and water the seed/grass? You are terribly stupid, Too Much. Sorry you're jealous, Too Much. Why don't you drive your Expedition back to your $18,000 home in the 'hood. Now - if anybody can provide the TAX implications (which is what I was looking for in the first place), please do so. Thanks.
Re: Re: Re: 125% LTV 2nd: Good idea or bad? Hey, A-hole: I'm not TRYING -- I can have it if I want it (approved). The original $49K second mortgage was part of an 80/20 to avoid wasting money on PMI insurance while turning around and making it tax deductible. Are you still a moron? Savings and 401K are intact, and staying there. Read my posts -- I'm using others money, some at low interest rates and some at no interest rates. Your's is a classic case of being an idiot.
Re: Re: Re: Re: 125% LTV 2nd: Good idea or bad? From the looks of it, most on this board would like to live in a world that is free from you.
Re: Re: Re: 125% LTV 2nd: Good idea or bad? Thanks, reddevil. I appreciate your input. There are literally no costs (vs. $3000 you stated) for the 'new' second. Regardless ... Yes, there is cash and such in place to pay it all off if I WANTED. But if I were to drain the savings and THEN lose the job, I'd have NO money. If I do a little creative shuffling (while recuperating from the expensive divorce), then it costs me little (less than your figures) to get back on track. Of the $45K, $10K of it is at 5.99% for LIFE, until it is paid off, and $16K is at 3.99% for LIFE, again, until it is paid off. About $20K is at anywhere between 0% and 10.24%, with one small amount at 12%. I've only had to shuffle a couple of time, as I get offers from my EXISTING cards for "1 year 0%" all the time -- and I have plenty of credit limits on the cards to move ALL the balance around (if I wanted to). Some idiots (like TooMuch) don't comprehend this. My original line of questioning wasn't "Ohh, help me, do I need to file BK or call CCCS" -- it was "does the deductible mortgage interest at a higher rate become a better deal than NO deduction at the lower rates". Again, I'm not a tax guy. I make the money; I know that a lower rate is usually a good thing, but I'm not up on all the tax laws and such. Thanks again.
Re: Re: Re: 125% LTV 2nd: Good idea or bad? Wow, you are digging a big hole for yourself. My wife and I made a lot more than that last year and we wouldn't even think of mortgaging ourselves into a hole like you talk about. You should not go 113% into debt on your house to support a boat, new furniture, a riding mower, etc., etc. No one here is impressed by how much you make -- the important thing is how much you keep, and you obviously have not been doing a good job at the later. I think Too Much was right on -- you are simply delaying the inevitable if you continue to borrow so that you can drink a cold beer in the gut of your 32' money burning extravagance. You obviously equate your purchases with your own feeling of self-worth. If you stopped spending, you would realize that there are other areas of your life that you were trying to compensate for by your out-of-control spending. I suggest that you take a look at the following books: Financial Peace The Millionaire Next Door The Richest Man In Babylon The Wealthy Barber I'm not at all upset with you, but I see a tragic future for you if you stay on your current path. Stop the spiral while you still can!!! --Galabar
Re: Re: Re: Re: 125% LTV 2nd: Good idea or bad? You have a lot of anger. I suspect that it is related to your financial situation. That's unfortunate. Yes, it's obvious that you're using other people's money... and they're happy to lend it to you at 10%+. Once you realize what's wrong with borrowing that money at 10%, you'll get your financial situation under control. Until then, I suspect that your frustrations will continue to boil over into displays like you showed here today. $130,000 a year isn't a lot of money... especially when you owe most of it to lenders and the IRS.
Re: Re: Re: Re: 125% LTV 2nd: Good idea or bad? I wonder what galabar and Too Much are doing here? Cruising for victims for their verbal abuse? Maybe not enough folks hanging around on MSN YM for them to rant at on a regular basis? Nah, they all came here. Sheesh, I wonder why?
Re: Re: Re: Re: 125% LTV 2nd: Good idea or bad? The debt is $45K. I *have* savings. I'm USING THEIR MONEY (0% financing, low fixed rates, etc.) to save from draining my savings. If you have savings maybe you might want to use some of that for the stuff you want to do instead of overmortgaging your home. Just remember when rates go up (they seem to be) home prices drop...therefore you have less equity.
Re: Re: Re: Re: 125% LTV 2nd: Good idea or bad? Too much.... If you have all the answers, answer the question: Is deductible interest at a higher rate better to pay than lower interest which is not. Can you answer just that question about some diatribe?
Re: Re: Re: Re: Re: 125% LTV 2nd: Good idea or bad? Quite possibly, we're trying to give some sound advice that will prevent the poster from making a bad mistake.
Re: Re: Re: Re: Re: 125% LTV 2nd: Good idea or bad? The question is impossible to answer without knowing the complete situation.
Re: Re: Re: Re: Re: Re: 125% LTV 2nd: Good idea or bad? I don't get it - you rant at people all the time that they are in trouble, when you don't know the entire situation. I would appreciate an answer to the question as posted. In a void, which is better?
Re: Re: Re: Re: Re: Re: Re: 125% LTV 2nd: Good idea or bad? No one should ever trade unsecured debt for secured debt. The small tax advantage that you receive isn't worth the risk you take when you put your home on the line. Does that answer your question?
Re: Re: Re: Re: Re: Re: Re: 125% LTV 2nd: Good idea or bad? The irony here is that you have contributed nothing to the thread, yet you bash those who try to shake some sense into the original poster. Your overwhelming anger toward me and others has clouded your view of the obvious bad decision that the original poster was proposing.
Re: Re: Re: Re: 125% LTV 2nd: Good idea or bad? What is your tax bracket? The good rule to follow is: New MTG Rate - Your tax bracket % = after tax rate. For example: 5.99% mtg rate x 30% tax bracket = your tax interest rate discount = 1.797. 5.99% - 1.797% = 4.193 effective after tax rate. Disclosure: I'm not a tax guy, but I am a banker.
Re: Re: Re: Re: Re: Re: Re: Re: 125% LTV 2nd: Good idea or bad? You're mistaken. Those who disagree with you are not necessarily angry. I am curious about your financial/economic philosophy, and would like to know what you think when you are not telling someone how wrong they are. Can you give information without relating it to what someone is doing wrong? Do you have a point of view if it is not in opposition to something or someone?
Re: Re: Re: Re: Re: Re: Re: Re: Re: 125% LTV 2nd: Good idea or bad? Then why not address the issue at hand. What do you think of the original issue?
Re: Re: Re: Re: Re: Re: Re: Re: Re: Re: 125% LTV 2nd: Good idea or bad? I am not an expert at tax advice. I don't give advice when I don't actually know the answer, not intentionally anyway. I believe I asked you first. Incidentally, why would you think that asking you to clarify your point of view, in general, is not a contribution to the thread?
