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      03-15-2013, 12:13 PM   #76
MCS
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Drives: 2012 M3 E93
Join Date: Jul 2005
Location: Northern NJ

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I'm going to be a contrarian and say that a decent debt to income ratio is about 1 to 1.

Caveat - For a home mortgage.

Interest rates are at an all time low. 15 year rates are less than 3%. Take into account that mortgage interest is tax deductable and its an absolute no brainer.

It makes sense to carry a mortgage loan and use the extra cash flow to invest in the market (at least for the last several years- during this bull run)

Credit card rates are fool's money. If you have the ability, roll them up and take out a home equity loan to pay them off. Pay off the HELOC and reap the benefits of a tax deduction.
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Last edited by MCS; 03-15-2013 at 12:19 PM. Reason: spell check