2% Condo Financing

When do they..

Danny W said:

I was determined not to dip into my retirement savings to pay for my condo in Sosua. One day I answered a sales call from one of my credit card companies - 0% interest for a year. Then I got an offer from my citi mastercard - 2.99% on balance transfers until paid in full. Then I started actually opening my junk mail - more offers. Bingo! I have financed 100% of my condo purchase. Currently, I'm paying less than 2%. Each time I pay off an advance, a better offer comes in the mail. What a racket! - D

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start to charge you 19.5 or 21 % interest? I always seem to find that in the small print down at the bottom. Type is so small I usually need a magnifier glass.

JOHN
stilllaughingat2%money.

Hey...I've done some of that for the house I'm currently building in The DR. You jus thave to be really careful and read the fine print. Don't ever miss a payment for not even one day or your rate autmatically goes through the roof. Also since all of that goes in your credit history is you get too many credit cards your credit may suffer. You normally only get about six months of the low percent interest (even though I've seen them as long as a year), when you're nearing the end of that period you can then transfer that balance to another low interest offer, but if you switch too many times they figure it out and you'll start to get rejected from new offers...and of course this all shows in your credit report.

So I guess the moral of the story is use this strategy wisely, otherwise it may come back to bite you in the A$$...

If you must finance, however this is a lot better than taking out a loan in The DR. Never do that, if you can avoid it. The interests can be ridiculously high and if you can't pay you can't just declare bankruptcy like here in The US.

may i ask if there is a limit to how much you can put on these cards? i get offers like this all the time but i assumed it was only like 1000 max.

2% money

True, true, true. These offers are out there, and they work. As long as you are never late. I've been doing this for quite some time and have never had a c/c card reverse it's original agreement. Once I take advantage of an offer, be it 0% for 6mos, 2,4,6,% til the transfered amount is paid in full, I segrate that c/c and never use it again til I've satified the conditions. In my experience the companies don't seem to mind. They do say NO if your'e over your head according to total extended credit vs stated income or you have a poor fico score created after the balance transfer. In which case they will "dry up" that c/c but honor the existing agreement.
The major problem is cash flow. While it may be o% usually they require that you pay a minimum of 2% of the outstanding balance. Thus, borrow $100,000 and you would be facing a minimum payment of $1600.00 per month. OOPS! That being said you should be placing the $$'s in an investment that would yield sufficient cast off as to justify the advance.
The lending institutions are "horny" to lend money. In todays market you could "lock in" that amount at 4-5% for the life of the loan. That's at least 2 points lower than the best conventional mortgage. Does that mean that the "land rush" experienced by North America is ending?
If you had equity in a home or other property you could roll the advance and capture the tax deduction, for the most part. However, the incidental costs associated with closing costs for the refi certainly raises the "best" mortgage rate and doesn't seem worth it. And again, you must have the cash flow to pay for the additional mortgage. Now at 6% on $100,000 you incur +-$6000.00 annual expense which equals +-$500.00 per month additional expense. And even in the highest tax bracket it hardly warrants the pain and suffering. Never mind that when you refinance you "give away" all your hard won equity.
So. borrow 100,000.00 K at 6% and invest it at 10%. You will be $4,000.00
ahead. On an annual basis. But, that is a slippery slope.
Just my experiences and gleenings of this approach.
I have a high er risk investment using this approach and even at 20 plus% the throw off is a close call. But in the end. When I withdraw from the investment or pay off the credit I will certainly net the difference.
Lots of luck, John.
Three more days til return to paradise.

2% money

True, true, true. These offers are out there, and they work. As long as you are never late. I've been doing this for quite some time and have never had a c/c card reverse it's original agreement. Once I take advantage of an offer, be it 0% for 6mos, 2,4,6,% til the transfered amount is paid in full, I segrate that c/c and never use it again til I've satified the conditions. In my experience the companies don't seem to mind. They do say NO if your'e over your head according to total extended credit vs stated income or you have a poor fico score created after the balance transfer. In which case they will "dry up" that c/c but honor the existing agreement.
The major problem is cash flow. While it may be o% usually they require that you pay a minimum of 2% of the outstanding balance. Thus, borrow $100,000 and you would be facing a minimum payment of $1600.00 per month. OOPS! That being said you should be placing the $$'s in an investment that would yield sufficient cast off as to justify the advance.
The lending institutions are "horny" to lend money. In todays market you could "lock in" that amount at 4-5% for the life of the loan. That's at least 2 points lower than the best conventional mortgage. Does that mean that the "land rush" experienced by North America is ending?
If you had equity in a home or other property you could roll the advance and capture the tax deduction, for the most part. However, the incidental costs associated with closing costs for the refi certainly raises the "best" mortgage rate and doesn't seem worth it. And again, you must have the cash flow to pay for the additional mortgage. Now at 6% on $100,000 you incur +-$6000.00 annual expense which equals +-$500.00 per month additional expense. And even in the highest tax bracket it hardly warrants the pain and suffering. Never mind that when you refinance you "give away" all your hard won equity.
So. borrow 100,000.00 K at 6% and invest it at 10%. You will be $4,000.00
ahead. On an annual basis. But, that is a slippery slope.
Just my experiences and gleenings of this approach.
I have a high er risk investment using this approach and even at 20 plus% the throw off is a close call. But in the end. When I withdraw from the investment or pay off the credit I will certainly net the difference.
Lots of luck, John.
Three more days til return to paradise.

2% money

True, true, true. These offers are out there, and they work. As long as you are never late. I've been doing this for quite some time and have never had a c/c card reverse it's original agreement. Once I take advantage of an offer, be it 0% for 6mos, 2,4,6,% til the transfered amount is paid in full, I segrate that c/c and never use it again til I've satified the conditions. In my experience the companies don't seem to mind. They do say NO if your'e over your head according to total extended credit vs stated income or you have a poor fico score created after the balance transfer. In which case they will "dry up" that c/c but honor the existing agreement.
The major problem is cash flow. While it may be o% usually they require that you pay a minimum of 2% of the outstanding balance. Thus, borrow $100,000 and you would be facing a minimum payment of $1600.00 per month. OOPS! That being said you should be placing the $$'s in an investment that would yield sufficient cast off as to justify the advance.
The lending institutions are "horny" to lend money. In todays market you could "lock in" that amount at 4-5% for the life of the loan. That's at least 2 points lower than the best conventional mortgage. Does that mean that the "land rush" experienced by North America is ending?
If you had equity in a home or other property you could roll the advance and capture the tax deduction, for the most part. However, the incidental costs associated with closing costs for the refi certainly raises the "best" mortgage rate and doesn't seem worth it. And again, you must have the cash flow to pay for the additional mortgage. Now at 6% on $100,000 you incur +-$6000.00 annual expense which equals +-$500.00 per month additional expense. And even in the highest tax bracket it hardly warrants the pain and suffering. Never mind that when you refinance you "give away" all your hard won equity.
So. borrow 100,000.00 K at 6% and invest it at 10%. You will be $4,000.00
ahead. On an annual basis. But, that is a slippery slope.
Just my experiences and gleenings of this approach.
I have a high er risk investment using this approach and even at 20 plus% the throw off is a close call. But in the end. When I withdraw from the investment or pay off the credit I will certainly net the difference.
Regarding the size of the c/c offer. It depends on your credit history, overall score, and the c/c. Often you can call the c/c company-usually ever 6 months-and ask for an increase in your credit line. For a typical person Discover, AX, AX blue, Hilton Honors, B of A, Citi Group and its affiliates, brokerage accts with affinity cards, etc are all fair game.
Lots of luck and good hunting, John
Three more days til I return to paradise.

2% money

True, true, true. These offers are out there, and they work. As long as you are never late. I've been doing this for quite some time and have never had a c/c card reverse it's original agreement. Once I take advantage of an offer, be it 0% for 6mos, 2,4,6,% til the transfered amount is paid in full, I segrate that c/c and never use it again til I've satified the conditions. In my experience the companies don't seem to mind. They do say NO if your'e over your head according to total extended credit vs stated income or you have a poor fico score created after the balance transfer. In which case they will "dry up" that c/c but honor the existing agreement.
The major problem is cash flow. While it may be o% usually they require that you pay a minimum of 2% of the outstanding balance. Thus, borrow $100,000 and you would be facing a minimum payment of $1600.00 per month. OOPS! That being said you should be placing the $$'s in an investment that would yield sufficient cast off as to justify the advance.
The lending institutions are "horny" to lend money. In todays market you could "lock in" that amount at 4-5% for the life of the loan. That's at least 2 points lower than the best conventional mortgage. Does that mean that the "land rush" experienced by North America is ending?
If you had equity in a home or other property you could roll the advance and capture the tax deduction, for the most part. However, the incidental costs associated with closing costs for the refi certainly raises the "best" mortgage rate and doesn't seem worth it. And again, you must have the cash flow to pay for the additional mortgage. Now at 6% on $100,000 you incur +-$6000.00 annual expense which equals +-$500.00 per month additional expense. And even in the highest tax bracket it hardly warrants the pain and suffering. Never mind that when you refinance you "give away" all your hard won equity.
So. borrow 100,000.00 K at 6% and invest it at 10%. You will be $4,000.00
ahead. On an annual basis. But, that is a slippery slope.
Just my experiences and gleenings of this approach.
I have a high er risk investment using this approach and even at 20 plus% the throw off is a close call. But in the end. When I withdraw from the investment or pay off the credit I will certainly net the difference.
Regarding the size of the c/c offer. It depends on your credit history, overall score, and the c/c. Often you can call the c/c company-usually ever 6 months-and ask for an increase in your credit line. For a typical person Discover, AX, AX blue, Hilton Honors, B of A, Citi Group and its affiliates, brokerage accts with affinity cards, etc are all fair game.
Lots of luck and good hunting, John
Three more days til I return to paradise.

Mia Culpa

I am soo sorrrry.. Myy fingers have a st st st stammer.

That's the ticket!