No. of Recommendations: 2
Hi Courtney,

What should we do, what should we be thinking about... Thanks for any advice.

In this ironic reality, paying cash would be a risky & spendthrift thing to do... you'd be losing the net earnings you'd have made on the working capital (net gains meaning after deducting the costs of the leverage/mortgage,) and you would be carrying both immediate liquidity risks, and future retirement income risks due to the underperformance of your overall balance sheet.

Get a 30 year term loan. If you don't mind paying-up in premium emotional feelings, take the more expensive 30 FRM programs. Its more expensive (some would say unecessarily...) but some justify the higher expense as a quality of life premium... like buying Haagen Das instead of plain label ice cream.

If you are more of a saver by nature, take a 5 yr ARM at about a 30-40% discount in rate vs the FRM (the rate markets are going nowhere fast for a long time forward, and even if that turns out wrong your working capital gains, invested for safe performance, will *always* earn more than your mortgage interest might ever increase.)

Don't treat or invest your coop sales proceeds separately... but rather lump that into your balance sheet total asset balance, and re-apportion your risk/reward account allotments (1st sufficient reserves, then sufficient principal-guaranteed safe accounts, and lastly risk capital you can afford tolose.)

Dave Donhoff
Leverage Planner

PS. IP I'm out of recs... IOU tomorrow ;~)
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