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grumpy356 said:
You're gambling on an election, if Biden wins, the market will sink like the Titanic.


OP, What rate are you at right now?

Guys, IF he pulls the Equity out in cash, could he then be liable for PMI? He would avoid it if he had equity, but the equity now gone int he form of the cash out. I think he would, but I don't know for sure.
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Not banking on the election, its going to go down the shitter regardless. The market fundamentals was in rough shape for at least 8 months pre COVID with money printing and the prices being propped up by the fed.

That's my prediction and I have been wrong so far about where the market has went LOL!!
 
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grumpy356 said:
You're gambling on an election, if Biden wins, the market will sink like the Titanic
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What do you base this on? I don't like Biden, but that doesn't mean a crash is eminent. The market was high during O bummer.
 
Mr Stubs said:
I’m thinking of refinancing my house and pulling out a bunch of equity for a future purchase.

You guys with experience with this or selling your home, etc, what do you do with the large sum of money while it’s waiting to be used?

Bank account? Interest bearing investments? Mattress?
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investing borrowed money is a bad idea, especially if you are planning on use it within a few years. put it in a checking account and get to work on the 4dee, the sooner you get the 4dee livable the quicker you can put what you dont use back.
 
mobil1syn said:
investing borrowed money is a bad idea, especially if you are planning on use it within a few years. put it in a checking account and get to work on the 4dee, the sooner you get the 4dee livable the quicker you can put what you dont use back.
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Why would he not just get a line of credit? Then he only pays when he's using the money.
 
WaterH said:
What do you base this on? I don't like Biden, but that doesn't mean a crash is eminent. The market was high during O bummer.
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biden is firmly in the federal shut it down and freeze out the 'rona camp. in addition to his stated claim to federally mandate face coverings and enforce with every asset possible, i.e. pull funding from states that don't mandate, he is much more likely to fight to keep schools closed and isolate travel and cities on a whim, whereas trump is more on the 'open up' side of the house.

that shut down fear and then consolidation with yet more stimulus demands would create even greater economic strife, even if things 'bounce back' after a couple years, in time for the next election cycle.

the states and congress have already done well to protract this from a short and quick pull back to a long term change in just the past 6 months.
 
Provience said:
biden is firmly in the federal shut it down and freeze out the 'rona camp. in addition to his stated claim to federally mandate face coverings and enforce with every asset possible, i.e. pull funding from states that don't mandate, he is much more likely to fight to keep schools closed and isolate travel and cities on a whim, whereas trump is more on the 'open up' side of the house.

that shut down fear and then consolidation with yet more stimulus demands would create even greater economic strife, even if things 'bounce back' after a couple years, in time for the next election cycle.

the states and congress have already done well to protract this from a short and quick pull back to a long term change in just the past 6 months.
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Hes also pro defund the police so his mandates would be 100% unenforceable from a use of forces standpoint. Withholding funding from the states would possibly be a good thing as the states can just as easily refuse to collect money on behalf of the feds and support the feds.:stirthepot:
 
Slander said:
Hes also pro defund the police so his mandates would be 100% unenforceable from a use of forces standpoint. Withholding funding from the states would possibly be a good thing as the states can just as easily refuse to collect money on behalf of the feds and support the feds.:stirthepot:
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has he come around to being pro-defund? all I've seen is that he supports funding police and more community engagement from police. those are both true and essentially mirror the trump stance, but he uses different words :rasta:

if he comes out in support of 'defund' then he is going to further lose out on his 'base'. but that is yet another thing that will make the debates entertaining and I look forward to them
 
Provience said:
has he come around to being pro-defund? all I've seen is that he supports funding police and more community engagement from police. those are both true and essentially mirror the trump stance, but he uses different words :rasta:

if he comes out in support of 'defund' then he is going to further lose out on his 'base'. but that is yet another thing that will make the debates entertaining and I look forward to them
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His handlers seem to change up his stance all the time!
Its going to be the same turd sandwich regardless who wins realistically.

Back to Stubbs: I guess this all banks on what your risk tolerance is and medium to long term objective with the money.
 
Line of credit would be the way to go if you don't need the money right now. You can get a locked in rate and only pull the money when you need it, and as you need it.

For those mentioning cashing out IRA's and other tax deferred accounts. Don't forget that if you do not reinvest them in a timely manner, you are going to have to pay taxes on any capital gains. Lots of taxes.
 
mobil1syn said:
i was answering his question regarding a cash out refi.
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But nobody has answered the PMI question.

If you don't leave 20 % Equity in your current home you will be back to paying PMI, which takes your 2.25 on a 15 or 2.65 on a 30 and adding 0.5% to 1% onto that number .

Then the numbers don't seem as appealing.

Also, I am not sure where you are at & I don't see the original 4dee post, but if this is in California, you will also open up your property tax to be re-evaluated at the new appraised value. (I think, that's what I heard anyway)

Am I wrong?
 
he is in WA, so i am not sure what property tax implications he will have.
 
Provience said:
biden is firmly in the federal shut it down and freeze out the 'rona camp. in addition to his stated claim to federally mandate face coverings and enforce with every asset possible, i.e. pull funding from states that don't mandate, he is much more likely to fight to keep schools closed and isolate travel and cities on a whim, whereas trump is more on the 'open up' side of the house.

that shut down fear and then consolidation with yet more stimulus demands would create even greater economic strife, even if things 'bounce back' after a couple years, in time for the next election cycle.

the states and congress have already done well to protract this from a short and quick pull back to a long term change in just the past 6 months.
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Biden is in the firmly "anti Trump" camp during an election. If he were to get elected, he would morph into the firmly "how can I get more money" camp. All the rona stuff would go to the back burner. Biden is not a commi, he's just your garden verity crook. Probably his VP will be also (Harris) Clinton is in this genre and the economy didn't suffer.
 
WaterH said:
Biden is in the firmly "anti Trump" camp during an election. If he were to get elected, he would morph into the firmly "how can I get more money" camp. All the rona stuff would go to the back burner. Biden is not a commi, he's just your garden verity crook. Probably his VP will be also (Harris) Clinton is in this genre and the economy didn't suffer.
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there is trillions of dollars in the 'rona lockdowns though. I hope we don't have to find out, but it will be interesting either way
 
grumpy356 said:
You're gambling on an election, if Biden wins, the market will sink like the Titanic.


OP, What rate are you at right now?

Guys, IF he pulls the Equity out in cash, could he then be liable for PMI? He would avoid it if he had equity, but the equity now gone int he form of the cash out. I think he would, but I don't know for sure.
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My rate is 4.25 and I owe 138k.
 
Mr Stubs said:
My rate is 4.25 and I owe 138k.
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On the other thread, I noted you hoped to get 125k. If you owe 138 and get 125, your at 263. Is that less than 80 percent of the value? (I don't believe they go above 80% for a line of credit.) When I got a 100k LOC, it was about 60% of the value I had in a condominium. (I owned outright) This was 17 years ago, so things may have changed. But I recall very little paperwork and I had had the use of the money in a matter of a day or two. (I have good credit) The rate was comparable with regular mortgage. There was no PMI, but that was probably because of the less than 80%.

Im no expert, but I really liked the line of credit. I had bought a commercial property and was in and out of the line of credit multiple times doing renovations. It was really nice not having to do more paperwork everytime I wanted 30 grand. All I had to do was write a check. I was making big money, so I paid it off several times to save interest. I can't remember the details, but it wasn't very expensive to maintain. I would be maintaining it to this day except I sold the condo and I dont have any big projects in the works.

Im not sure if they are still doing these, but if they are, I think it would be perfect for your plans. I got mine with Bank of America. I assume they are not the only ones that do it. It was a "home equity line of credit" and I did have to say it was my primary home. Of course, it wasn't where I was living. Lol.
 
Mr Stubs said:
My worry would be basically two separate payments on the same property. One for a mortgage and another for a HELOC.
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they are two separate products, so think of them in those terms. i'm still generally against the HELOC for long term use. they are great to have open in case "oops, need a new roof" or some other thing if the financing terms are better. they are a trap in the "i'll just make interest payments" terms though for things like building and equipment.

like I said earlier, at some point paying to sit on cash that is going to be used is just moving the note from 'then and ending later' to 'now and ending sooner' if you are going to use some or most of it, have it tied up for most of the time and are OK with the timelines
 
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