Jim, When we bought in 1985 we had a 5 year locked in mortgage at 12.25%.....mind you it had been up around 18%/20% range shortly before so we didn't take any chances. Paid an extra 15% on top of that to speed up the payments. When it came due we just went with 6 months at a time at about half that rate. 8 1/2 years and no more mortgage. It felt great!
It's the only way Bill-buy it and get rid of the party holding the note.
Yet so many in this world just do the cookie cutter good sheep model of financing.
Gee it's great 5 yr mortgage on a 30/40yr amortization
Gee it's a great 5 yr mortgage on a 30/40 yr amortization
Hey nothing moved-I still owe nearly the same?
Well you just are basically paying off the interest
Let me see here if I can do, er, click, eh click de click, um click
Well how about this, I can increase your line of credit, and C/C
Do sort of a consolidation of the CC, auto.
And set you up in one of new saving plans with free cheques
Now the base free for this is great $xx.xx per month
Yup a 5% increase in rates would finish off a whole bunch, 10% would make a whole lot more run for cover.
This where the toys at the end of the driveway appear.
15% would be a jingle mail event (for the younger members - it's where hte keys get mailed back to the lenders.
My brother got a 22% rate on his house in the early 80's.