The Survival Podcast Forum

Finance and Economics => The Money Board => Topic started by: ag2 on October 12, 2012, 11:21:45 PM

Title: Bank on Yourself Mortgage
Post by: ag2 on October 12, 2012, 11:21:45 PM
Does anyone have any experience with this?  Has anyone considered a "bank on yourself" mortgage and decided against it?  If so, why?
Title: Re: Bank on Yourself Mortgage
Post by: Rob_Cleveland on February 03, 2013, 02:17:59 AM
I'd never heard of it, so I looked it up. It seems to me that your borrowing money using your savings as collateral. I would agree that you could continue earning interest on a savings account and I'm certain you'd get a better interest rate on the loan, since you don't need the loan (Bankers always want to lend you an umbrella on a sunny day!) but I see much more potential from using silver as collateral instead of a savings account due to a higher (projected) value over time in relation to US Dollars or any other paper currency.
Title: Re: Bank on Yourself Mortgage
Post by: Alpha Mike on February 04, 2013, 10:00:06 AM
This is a new name of a old thing... whole life insurance policy. 
My dad has one that sends him a small check quarterly.  Once you finish paying into the annuity, it will pay you back a small dividend until you die, then the insurance policy is activated and paid out.  Whole life policies fell out of fashion because term life has lower premiums plus many employers starter (and continue to) offer life insurance as a benefit, so folks don't have to go out and buy their own life insurance.  If you are young, it might be a good investment.