Re: Question Re: Patriot Act

In article <ibdss1tivn2568r01570nrscov37p5832r@xxxxxxx>,
Sam The Man <FunkyOldSam@xxxxxxxxxxxxx> wrote:

> On Wed, 18 Jan 2006 04:33:25 GMT, Larry <x@xxxxx> wrote:
> >More importantly, I think the OP needs to understand that:
> >reportable != illegal.
>
> And repeatedly I have said that I will do absolutely nothing and
> suffer the financial consequences before doing anything either
> REPORTABLE and/or ILLEGAL. Some people refuse to accept that
> statement and consider me a criminal simply for posting my original
> inquiry.

I guess what I - and others - are wondering is: why do you care if you
do something reportable?

> >I am not an economist or financial planner, but wouldn't it be better
> >not to do this? If you're about to lose a major source of income, why
> >pay a huge debt at once, when you already have an agreement (the
> >mortgage) that lets you pay lower monthly amounts?
>
> Someone else brought up the same concept and I am studying it. My
> first thought after I was told I was being laid-off was to immediately
> lower my monthly bills to the point where I could survive longterm on
> unemployment and, later, on almost any trivial job. In that regard,
> my 5/1 ARM mortgage... which is about to go variable within the
> year... is the single biggest financial threat to my economic
> survival.

Wouldn't it be better to refinance then into another ARM? Or even a
fixed-rate?

Seems to me if I was about to lose my job and I had a choice between
(just picking numbers) paying $2000 per month or some large amount (over
$10,000, obviously), I'd want to pay the lower amount, so that I had the
rest available for true emergencies.

What if you pay down or pay off your mortgage, then you have an
unexpected medical bill? Or your roof collapses? Or your car breaks
down?


> >What if a true emergency comes up? What if you find a new job
> >relatively quickly? Why pay off something you don't need to with your
> >emergency money?
>
> This lay-off *IS* a true emergency... certainly my biggest ever... and
> a new job isn't going to materialize until I can get some serious job
> retraining.

But its not an emergency that causes a large expense.


> Even then, my income will likely fall to about half to
> 3/4 of what I currently make. It's an ugly situation. But as I said
> earlier, I will still have about 25% of my emergency fund leftover
> after the mortgage buy down... and it won't be all that long before I
> can start to draw on my 401(k).

I'd think that if my income was dropping by 25-50%, I'd want to drop my
expenses by 25-50%, not increase them with enormous lump-sum payments
that I don't have to make.

How many mortgage payments would it take before you reached the amount
you're thinking of paying off in the lump-sum?
.

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