Date: Thu, 29 Jun 2006 23:25:02 -0500
From: "Ron Peterson" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Making Money off Low, Fixed-Rate Mortgage
   posting-account=IBEGXwwAAAC3y5gomFC4zy3i1HbPGlYB
	iQBVAwUARKSnnvl/I4+O31e5AQFjAAH/RyPwSCXQH95Nz4sW8BfVnl+1K5KeEVX8
	LMmribuWCSoGHE7CoMVUDbrMO5j1Jlgx9fBls4X6rf8ghBSbGTy63g==
	=dbBT


woessner@gmail.com wrote:
> This is more of a theoretical question than a practical one.

> I was just reading that the Fed has raised the federal funds rate to
> 5.25%.  Hey, at least it was just 1/4 point instead of 1/2.  And
> mortgage rates have gone up, too.  According to BankRate.com, a 30-year
> fixed mortgage in Virginia now averages 6.3%.

> So this got me thinking.  My wife and I bought our first house a few
> years ago when interest rates were REALLY low (5%).  Could someone with
> a low, fixed-rate mortgage somehow capitalize on this situation and
> make some money?

> Again, this is just idle thinking...  I was thinking you could somehow
> 'relend' the money that was lent to you.  But all that money is only
> realized as equity in your house.  And to tap that equity, you'd have
> to do something like take out a home equity loan...  at today's rates.
> So that wouldn't work.

You can reinvest the money in the stock market and make more on the
average, you to suffer a risk of losing money.

-- 
   Ron