125% LTV 2nd: Good idea or bad?

Discussion in 'Credit Talk' started by jshimmer, Aug 8, 2003.

  1. jshimmer

    jshimmer Well-Known Member

    Re: Re: Re: 125% LTV 2nd: Good idea or bad?

    This proves your ignorance. This would suggest that, anybody who owned a home with a $300K mortgage and didn't make $250K a year in salary is in trouble.

    Your worthless trolling is no longer a bother to me, as I've added you to the ignore list.

    Bye-bye, Ignorant Girl.
     
  2. jshimmer

    jshimmer Well-Known Member

    Re: Re: 125% LTV 2nd: Good idea or bad?

    Absolutely correct. I pay my bills every month. And have plenty of disposible income to buy toys, too.

    Perhaps Too Much thinks that everybody should live like their grandparents did - hoard every dime, spend every waking moment sitting at their kitchen table DOING NOTHING to enjoy life, just so they can live 75 years and DIE with all their money in the bank.

    I say, SCREW THAT! :)
     
  3. too much

    too much Banned

    Re: Re: Re: 125% LTV 2nd: Good idea or bad?

    This must be a troll.

    Thousands in disposable income every month, yet he wants to pay 12% for a 125% loan.
     
  4. too much

    too much Banned

    Re: Re: Re: Re: 125% LTV 2nd: Good idea or bad?

    You don't own the home... the bank does. You have no equity. They let you live there, pay the rent, insurance and taxes, and even repair it.
     
  5. galabar

    galabar Banned

    Re: Re: Re: Re: 125% LTV 2nd: Good idea or bad?

    Yes, this sounds a little bit odd. It certainly doesn't make sense to (1) trade unsecured debt for secured debt, (2) take on a 12% rate (~9%-10% after taxes) that couldn't possibly be matched by investment returns (using a risk-adjusted view), and (3) owe 113% on their home.

    It could be that the OP wanted to see what type of reaction that would be created by such a post -- I hope so. I really hope this is a troll having a little fun rather than someone seriously considering the actions in the original post...

    --Galabar
     
  6. too much

    too much Banned

    Re: Re: Re: Re: Re: 125% LTV 2nd: Good idea or bad?

    There's your answer:

    http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=36579#post36579

    He's a troll. Judging by that thread, he does a lot of it here, under more than one name.

    It's funny to read his "real" posts, though. He's obviously in bad financial shape. A Cross Country Credit Card?

    http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=5534#post5534
     
  7. too much

    too much Banned

    Re: Re: Re: Re: Re: Re: 125% LTV 2nd: Good idea or bad?


    Reading further through "John's" situation, I'm 100% sure he needs to file bankruptcy.

    18 months ago he didn't have $45,000 in CC debt. He only had $600.

    18 months ago, he also didn't have the $49k second mortgage on the house.

    He has a $69k boat loan.

    His debt has apparently gone up about $100,000 in 18 months, and that's only months after getting all the previous bad stuff (repos, charge offs, etc) off his report.

    This poor guy is a textbook bankruptcy case. He's a credit junkie, and he's nearing the end of his rope...again.

    18 months ago:

    http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=143757#post143757


    John-

    Get yourself to a Bankruptcy attorney.
     
  8. too much

    too much Banned

  9. breeze

    breeze Well-Known Member

    The troll is gone. Yayyyyyy!!

    Even if the advice was good (which it isn't) who would want to listen to someone who takes your story of your credit journey and uses it to put you down?

    Thanks, CCN Steve!! Nice work. You gave it a chance to prove it was not a troll - fair enough.
     
  10. GEORGE

    GEORGE Well-Known Member

    NOBODY CALLED ME AT WORK!!!

    Next time there is something IMPORTANT...(like a fight) and (BANNED) CALL ME!!!

    :)
     
  11. jlynn

    jlynn Well-Known Member

    I'm almost as happy as I imagine I will be if I can ever get Crap One deleted off my reports :)
     
  12. jshimmer

    jshimmer Well-Known Member

    Re: Re: Re: Re: Re: Re: 125% LTV 2nd: Good idea or bad?

    Hey, Idiot: You need to go back to ALL my posts.

    I filed Chap 13 years and yeras ago, due to my first divorce and wife filing FIRST and leaving me w/ ALL the bills AND child support.

    HOWEVER, I had it (mine) DISMISSED and I *PAID* all my creditors -- THOUSANDS and THOUSANDS of dollars I paid to settle my debts INSTEAD of hiding behind BK (once I learned about it all).

    My second wife used me for my money, divorced after 1.5 years and took everything she could get. Then I had to pay THOUSANDS during the divorce settlement.

    Before you go opening your big mouth and giving advice, perhaps you should has for more info FIRST.

    You said, "Divorce is no excuse" for running up debt. What if it was "pay up or be found in contempt of court" (violating the divorce settlement order) ?? Hmmm? If you're found in contempt, you GO TO JAIL. So it's JAIL or DEBT -- is divorce STILL not an 'excuse' ??

    Go crawl in a hole and get yourself edjimucated ...
     
  13. jshimmer

    jshimmer Well-Known Member

    Breeze -- who's the troll and who's gone?
     
  14. jshimmer

    jshimmer Well-Known Member

    Re: Re: Re: Re: 125% LTV 2nd: Good idea or bad?

    Who said THOUSANDS in disposable income a month? You truly are an ignorant woman. Not only can you not read, you can not comprehend.
     
  15. GEORGE

    GEORGE Well-Known Member

    Re: Re: 125% LTV 2nd: Good idea or bad?

    too much [TROLL]
    too much IS GONE
     
  16. breeze

    breeze Well-Known Member

    Re: Re: 125% LTV 2nd: Good idea or bad?

    Too Much was the troll. I ran the troll test - she passed. ;) Gone on to bigger and better things, I'm sure. Or back to YM, where her subjects grovel for approval.


     
  17. jshimmer

    jshimmer Well-Known Member

    Re: Re: 125% LTV 2nd: Good idea or bad?

    Hey, Breeze & GEORGE:

    I wonder if Too Much would conclude that, this parent in this article was a fool for going into debt to finance his children's college education, that it was "no excuse" for going $60K into debt, and suggest that the parent file for BK?

    <http://www.detnews.com/2003/schools/0308/11/a04-241040.htm>
     
  18. Hedwig

    Hedwig Well-Known Member

    Re: Re: 125% LTV 2nd: Good idea or bad?

    John,

    To answer your original question, don't take the mortgage. Not because of any of the reasons you've been slammed with. I'm a big believer in mortgages. Check out Ric Edelman's web site (ricedelman.com). He used to have a brochure called "15 reasons to carry a big long mortgage and never pay it off." Most of that has been incorporated into his books, which I recommend. You'll find information on them on the web site.

    However, in your case, here's the reason: you seem to have most of your debt at a fairly low rate. If you keep doing BTs you'll keep it there.

    If you take the mortgage, you're looking at 12%. Assuming you can write it all off, you're still paying in the 7.5-8% range (depends on your marginal tax rate). Take your marginal tax rate times the interest rate. That's your savings. Subtract if from the rate to see what your effective rate is. For example, if your marginal rate is 33%, take 33% of 12%, which is 4%. Deduct that from the 12% and you have 8% effective rate. You would be paying the 8% on the entire amount you owe. Right now you're paying rates like 0%, 3.9%, 5.9%. all of which are less than 8%. So even with the tax savings, you're better off.

    I think that's what you wanted, as far as numbers go. Now, I agree on one thing--if you mortgage your house above its value and values fall, you're in dire shape if forced to sell.

    As far as AMT goes, it might or might not apply. Many deductions can be limited when your income exceeds certain thresholds. However, that's ADJUSTED GROSS INCOME. You probably have deductions before the AGI if you're putting part of that $130K into a 401(k) or some pretax accounts. Also, alimony payments may be deductible before AGI. So this is another case where you have to know all the facts before determining whether you'd lose deductions.

    Bottom line, pay the low interest, shift as much as you can, and pay off as fast as you can (highest rate first). UNLESS you can make more interest somewhere then what you pay. Then don't pay extra, invest the extra.
     
  19. Ender

    Ender Well-Known Member

    Re: Re: 125% LTV 2nd: Good idea or bad?

    John,

    Here's my general advice.. I would lower your expenses if possible until your debts get manageable.

    I would plug your biggest leak which are your taxes.. 30% for federal + up to 9% for state (depending on what state) + 7.65 for social security and medicare.. which adds up to almost 50%.. that means u lose a LOT..

    How do u plug this leak? Well schedule A, C, etc. talk to a CPA for details. I personally make about $130k a year too.. but beceause of tax strategies, I keep a lot of that income.

    Also, having no debt and paying 0 interst is better than tax deductible interest.. so shuffling around would be better.. i would just play out scenarios on excel.. thats what I do. I would def. focus on getting rid of the debt however..

    obv u know that your scores are suffering because of the debt. another idea is to get business credit so your debt is cloaked. g ood luck
     
  20. jshimmer

    jshimmer Well-Known Member

    Re: Re: 125% LTV 2nd: Good idea or bad?

    Hedwig/John -

    Yes, I decided to shuffle with the 3.99, 5.99 stuff. Two thirds of it are @ those rates for life, so it only makes sense.

    I even do 'extra' stuff, like use the DCRA (dependent care reimbursement account) to pay child care in PRETAX dollars ... :) Hell, up to 5K per year. Why not? :)

    As for my scores suffering -- they DON'T. I have hellacious credit limits. My risk scores are in the 700's and I can get whatever I need. :)
     

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