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Author: Rayvt Big gold star, 5000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127815  
Subject: Re: Should I pay cash or get a mortgage? Date: 2/28/2013 2:41 PM
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One option is to split the difference. Get a smaller mortgage, maybe 20%-50% loan-to-value. This hedges your risk but also reduces your potential gains.

Um, no.

Your risk is the same with any mortgage greater than $0, be it 20% LTV or 80%. I've seen houses go into forclosure with a balance as low as $5000.

Financially, the Best Answer is to borrow as cheap as you can for as long a period as you can. *IF* you can earn more than the loan costs. You just have to make sure that you are liquid enough that you can always make the monthly payment.

Not that I am recommending either of these, but PFF pays 5.95% and PGX pays 6.4%.
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