Home Mortgages

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asymptote's picture
Joined: 06/16/2011
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Home Mortgages

If you have a home mortgage with equity a potentially optimal method to investigate is to restructure your home loan, such that you draw down on the equity, then, use that equity to pay back in to the mortgage, like using an offset account. The advantage being that in a SHTF scenario you can 'hold out' longer than just about everyone else around you. 

Clearly, owning outright is the best idea, but for those that would rather buy PM's than pay down half the equity, this could add a little extra breathing room for the PM's advance in price, hopefully to the point of eclipsing the remaining debt.

Just as idea....

Edited by admin on 11/08/2014 - 06:06
Rear Flank Downdraft
Rear Flank Downdraft's picture
Joined: 06/14/2011
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What about a mortgage with no equity....

......or even a bit underwater?  Especially for people who are just waking up to the reality and necessity of acquiring PM's as a means of preserving wealth......

The dilemma here is, given the current economic circumstances, which route to go in the effort to get out from under the mortgage: does one begin the arduous task to knock down the principal, and try an build equity when almost all markets are depreciating (......and what good does saving FRN's with a return of 1% or less for most savings accounts)?  Or does one try leveraging against a possible dollar collapse, and save money in physical?  Or is it wise to do both?

The magic variable here is time-- and not knowing when and what will happen.

Just curious as to what anyone thinks is the best route to go regarding PM's, mortgages and the current economic uncertainty.

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