Saturday, November 01, 2008

Paying Down the Mortgage

I'm no financial genius. If I were I'd probably be living on an estate in Woodside instead of a TIC flat in San Francisco. However, one personal finance equation seems pretty clear, even to me. If the stock market is tanking, and you are paying +7% interest on a fractional loan mortgage, and you've got some money in the bank that can be put to use then it's a good time to pay down your home loan. I went over to Sterling Bank yesterday and wrote out a big check that will cut a big hunk off our principal. After ten years of "owning" a place in San Francisco I'm at the point where I am within sight of holding the title to my little flat outright. And that feels good. So sometimes, with luck and hard work and a little bit of smarts I am here to tell you that this homeownership American dream can work out - even in San Francisco. I'm also here to tell you that without TIC ownership who knows - I might still be a renter.


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