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Path: utzoo!watmath!clyde!burl!ulysses!bellcore!decvax!wanginst!marcus
From: marcus@wanginst.UUCP (Bob Marcus)
Newsgroups: net.invest
Subject: Re: The 3% rule
Message-ID: <1646@wanginst.UUCP>
Date: Thu, 6-Feb-86 09:22:22 EST
Article-I.D.: wanginst.1646
Posted: Thu Feb  6 09:22:22 1986
Date-Received: Sun, 9-Feb-86 04:43:59 EST
References: <182@milo.UUCP>
Reply-To: marcus@wanginst.UUCP (Bob Marcus)
Organization: Wang Institute, Tyngsboro, Ma.  01879
Lines: 20
Summary: 

In article <182@milo.UUCP> ded@milo.UUCP (Don E. Davis) writes:
>
>Now that mortgage rates have apparently bottomed out (only 2% below
>my current rate) I did some calculations.  Since refinancing will
>cost about $3000, and reduce my payment by $128, I figured it this way:
>The $3000 is a loss, so I calculated what I would have make if I 
>invested the $3000 at 10.5%.
>The gain is $128, so I calculated what I would have if I invested $128
>per month at 10.5%.  The break-even point occurs after 2 1/2 years.
>It seems to me that, as long as I keep the mortgage at least 2 1/2 years,
>this is a good deal.  Am I missing something?
>					don davis

One important fact to consider is that there will be a month in which you make
NO payment, as there was when you first took out your mortgage.  That is
effectively money in your pocket.
-- 
Bob Marcus                               marcus@wanginst        (Csnet)
Wang Institute of Graduate Studies       wanginst!marcus        (UUCP)
Tyng Road, Tyngsboro, MA 01879           (617) 649-9731