tag:blogger.com,1999:blog-2895395037451981195.post6297775092781985178..comments2023-10-10T07:58:51.863-04:00Comments on Loonies And Sense: Inflation can be your friend.Loonies And Sensehttp://www.blogger.com/profile/17745603458861731443noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2895395037451981195.post-86028982467560623122007-08-31T11:38:00.000-04:002007-08-31T11:38:00.000-04:00True, this relies heavily on the assumed rate of i...True, this relies heavily on the assumed rate of inflation.<BR/><BR/>However, even at 2%, taking inflation into account cuts the cost of borrowing by as much as half. The point is not so much the exact number, but the fact that "I'm buying my house again with the interest" is usually over-stated.<BR/><BR/>Looking at the flip-side, where you increase your mortgage payments by your own inflation factor, this will always significantly shorten the life of the loan, and bring down the cost of borrowing.Loonies And Sensehttps://www.blogger.com/profile/17745603458861731443noreply@blogger.comtag:blogger.com,1999:blog-2895395037451981195.post-84631429933072241932007-08-30T22:48:00.000-04:002007-08-30T22:48:00.000-04:00Interesting idea, but there is a small hole in it ...Interesting idea, but there is a small hole in it all.<BR/><BR/>Do you really think inflation is running at 3%? For the last 12 years in Canada we rarely broke 2.5% and then there is research to suggest the CPI is overstating inflation by 0.5%. In the US it is worse and the bias is around 1.1%.<BR/><BR/>Just some thoughts,<BR/>TimTim Stobbshttps://www.blogger.com/profile/02029234099545136789noreply@blogger.comtag:blogger.com,1999:blog-2895395037451981195.post-63913025838216653192007-08-29T10:57:00.000-04:002007-08-29T10:57:00.000-04:00I read that post too...he's pretty persuasive abou...I read that post too...he's pretty persuasive about the actual difference in mortgages...SavingDivahttps://www.blogger.com/profile/10267021491907810696noreply@blogger.com