On Sep 25, 9:40*am, zeke <howie...[at]yahoo.com> wrote:

- quote -

You probably don't want to decrease your insurance. Repairs can cost
more than new construction.

--
Ron

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In article
<a6b4d9a6-8517-4202-a5c0-484ea6ede2ca[at]d77g2000hsb.googlegroups.com> ,
zeke <howie_ak[at]yahoo.com> wrote:

- quote -

I assume you are talking about a home mortgage here, and not
options as in options on stock or options on commodities.

- quote -

Yes, as long as you stay current on the loan repayment, and you
live in the home, you are OK. If you do something else, you may
trigger having the loan be called (if you rent it) or foreclosed on
(if you fail to pay).

- quote -

The lender will be OK as long as the insurance covers the loan value.
Your bigger concern is that the cost of building materials and labor
is much higher today than a few years ago, so it may cost more than
the value of your home to rebuild your home. You may need to increase
your coverage.

- quote -

That all depends. The mathematical answer is that you invest in
what returns the most with an acceptable risk level. If your home
mortgage is at 5%, you can get more in stocks, bonds, and even in
CDs (I just bought some 6% CDs backed by the FDIC). If your
mortgage is 9%, then paying it down is a great choice since it
is a zero risk 9% return (not counting tax impacts).

Some folks say you should have your home as your fortress, pay
it off, and never risk it. Others say that 6% money is cheap,
and paying it back is silly when you can put it at risk in
the market or in a business and potentially make 10 times the
return. Or save it waiting for that once in a lifetime deal.
The best choice is different for everyone. It all depends on
how you are wired inside.

-john-

--
================================================== ====================
John A. Weeks III * * * * * 612-720-2854 * * * * * *john[at]johnweeks.com
Newave Communications * * * * * * * * * * * * http://www.johnweeks.com
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On Sep 25, 10:44*am, PeterL <po.n...[at]gmail.com> wrote:

- quote -

We need the terms of the loan, don't you think? I just bought a new
(used) car last month and the dealership was offering 1.9% financing.
Even money market after taxes can match that.

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On Sep 25, 7:40*am, zeke <howie...[at]yahoo.com> wrote:
- quote -


Unless you have a need to move soon, the fact that your house is worth
less than your mortgage should have no bearing, other than the
psychological feeling that you are a lot poorer. Welcome to the
party.

If you have extra money, why not pay off your auto loan first.

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I am upside down due to the market even though I went in with 20%
down. I pay regularily and even pay down principle on a regular
basis. Besides something catastrophic, this trend will continue
indefinitely.

That being said, what are my options. I understand that as long as I
continue to pay, I should have no worries from the bank and once the
market recovers I'll be back on track. What about insurance. The
policy is based on the purchase value which is not the current rebuild
value. If I reset this policy, do I open myself to questions from the
lender?

Lastly, given everything, under current market conditions and without
any other debt save a car loan, is paying principle in excess of
mortgage payments the best choice?

Thanks,
Zeke.

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