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Nesgroup address: misc.invest.real-estate - Date & Time for the message: 9 Apr 2005 17:17:10 -0700 /

Author of the message: "OptionARMpopeye"

Title of the message:
Fixed Rate Mortgage Pros and Cons: A Discussion

Text of the message:
Conventional wisdom tells us, "get a 30 year 5% fixed rate mortgage pay
it for 30 years and own your home. In actual practice things do not
usually go that way. Your family grows, you change jobs and move to
another city, your kids go to college and you refinance to pay tuition,
your company "downsizes" and you need to scramble to start a new
career, etc, etc, etc..
This is not a slight at all on the steady Eddies out there that have
investment portfolios, perfect credit, absolute job stability, a
perfect marriage, a boat, summers in the Hamptons, and a clear cut
plan. Far from it, but then again why are so many of them opting to
free up more money, and take advantage of tax breaks a mortgage and
only a mortgage offers? Many savvy investors are accepting refinance
options at 4-5% and using that money for returns in the 7-12% range.
Who is doing better the guy that is paying down his mortgage giving the



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