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Old 04-09-2012, 08:24 PM   #1
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Question extra mortgage payment of 1 oz silver

I have 25 years to pay on the house- 5.5% fixed-this month $38.79 went to principle.

Would you A, buy a silver eagle

or B, pay $38.79 as it would be like making a 2nd house payment.
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Old 04-09-2012, 08:52 PM   #2
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Sell the house. Seriously.
Sell. The. House.
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Old 04-09-2012, 09:38 PM   #3
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Me personally? I hate debt. I would pay it off as soon as possible.
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Old 04-10-2012, 08:45 AM   #4
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Originally Posted by PMBug View Post:
Me personally? I hate debt. I would pay it off as soon as possible.

Debt is terrible, avoid it at all costs.
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Old 04-10-2012, 10:08 AM   #5
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Originally Posted by Jetstream View Post:
Sell the house. Seriously.
Sell. The. House.
No. My mortgage is 1/2 what rents are.
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Old 04-10-2012, 10:14 AM   #6
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Originally Posted by Penn View Post:
No. My mortgage is 1/2 what rents are.
There is a proper way of using debt and an improper way of using debt.

If push came to shove and the bank called in your loan, could you pay for your house?

If the answer is no, then you are using leverage incorrectly.
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Old 04-10-2012, 10:22 AM   #7
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I could- but I would not.

Selling- might mean walking away break even.
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Old 04-10-2012, 10:25 AM   #8
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I have used part of my Christmas bonus each of the last six years to pay down the principle on my home. At this point, I only owe around [I think] less than twenty grand. I have thought about just paying the damn thing of and being done with it, but right now cash is king, and an opportunity may present itself that would allow me to arbitrage a nice profit, giving me free money to pay down the principle even more, so I won't pay it off just now.
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Old 04-10-2012, 10:29 AM   #9
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The question could be- will silver yield better then 5.5%.

My house is a consumable item- carry costs could wipe out any equity- so I pretty much think I am break even to 20K to the black.

Apartments are literally 2x the cost of my PMIT.
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Old 04-10-2012, 10:53 AM   #10
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Originally Posted by ancona View Post:
I have used part of my Christmas bonus each of the last six years to pay down the principle on my home. At this point, I only owe around [I think] less than twenty grand. I have thought about just paying the damn thing of and being done with it, but right now cash is king, and an opportunity may present itself that would allow me to arbitrage a nice profit, giving me free money to pay down the principle even more, so I won't pay it off just now.
Pay Alloidal tax and be free if impending property tax acceleration, and any property liability.

If your state, or where you live allows this form of tax removal.
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Old 04-10-2012, 11:01 AM   #11
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Alloidal title is not available anywhere in the United States. Although, I did recently read that one of the redoubt states had abolished property taxes state-wide. This makes it the most attractive state in the union for purposes of falling off the grid so to speak.
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Old 04-10-2012, 11:27 AM   #12
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I am going to look into the redoubt state that recently abolished property tax. If I track down that info, I will put it up here.

Live on your land, hide you PMs, pay no (or very little) tax.

That would be fabulous! Pity it's so cold in the winters though.
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Old 04-10-2012, 11:32 AM   #13
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If you build an earth sheltered home, it might be a little damp, but you will never really get "cold". I have read many stories about underground homes and have seen some amazaing stuff. There are a hundred ways to do it and a hundred ways not to do it, but it is the single most energy efficient way to keep both warm in the winter and cool in hte summer.

With a little bit of heat from a fireplace, you can comfortably heat two thousand square feet in winter, and with a very small injection system you can cool it in the summer using deeper earth as a heat sink.
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Old 04-10-2012, 11:48 AM   #14
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Originally Posted by DoChenRollingBearing View Post:
I am going to look into the redoubt state that recently abolished property tax. If I track down that info, I will put it up here.

Live on your land, hide you PMs, pay no (or very little) tax.

That would be fabulous! Pity it's so cold in the winters though.
I have not found any states that have zero property tax. However, most reports I read list Wyoming as having the lowest property tax rates.


Example article:
http://ezinearticles.com/?States-Wit...axes&id=577015
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