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Originally Posted by woj
That sounds great in theory, but the truth is you can't cheat the system. The only reason you may come up ahead with this strategy is because you take on more risk. It's a great strategy if your investements work out, and your house appreciates, but if things don't work out, in 10 years you could be left without a penny to your name....
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not necessarily - if you take the money and invest it in CDs or other quality investments paying around 5%, you're not really taking on more risk - you're just earning 5% compounded, on money that would be held by the mortgage company paying you zero. worst comes to worst (and i'm not talking about if you have an interest-only mortgage that comes due every 6 months because then you *could* get screwed if we see a repeat of the 70s - my interest rate is fixed for ten years before it can change), you're slightly ahead of even - you can take the money at any time and hand it to the mortgage company, if you're so inclined.