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Author: crackdclaw Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 22840  
Subject: Re: Mortgage broker Date: 1/28/2013 7:07 PM
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The Land Beyond O'Hare. That's funny, I remember making that reference, or possibly it was you, on another thread years ago. Of course, it was probably Mike Royko who made the original reference.

Leaving work now to toss some steaks out on the grill. But yeah, let's follow up on that discussion of one loan vs. two loans. That comes up in my work frequently, most people will make a gut decision, yet I know no one better than you with a spreadsheet. I am curious about the math. Very detailed that you would you use home appreciation as a variable, of course, that means you've also used the cost of a new appraisal in factoring when PMI can be dropped.

I touch base to let you know reasons outside of economics for going with two loans. As most on these boards hate debt, the second loan genearlly gets paid back quicker than a spreadsheet may guess. Funny how debt will be paid more aggressively down to zero vs. building savings. Also, think Texas is unique in the U.S. about opening up a second trust HELOC. Once you close on the new property, I'm not so sure Texas allows a 2nd Trust to be opened with a combined LTV greater than 80%. I'm a big fan of having a HELOC for emergency purposes. This is outside the regular emergency fund, something your Peabody (or was it Salem) wife may say is a Wicked emergency. Have one myself with a $0 balance. It's the only way I know that I can walk into a bank and walk out the same day with $50,000. cash, and not use a gun.
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