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      07-13-2013, 07:42 PM   #108
Vddr
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Drives: AW E92
Join Date: Oct 2011
Location: San Francisco

Posts: 16
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Quote:
Originally Posted by Vddr View Post

Of course you can say well I'm only putting say 20% down so my returns relative to my cash investment in the house is a lot higher. But the principal risk here is enormous, if your house goes down 4% then you basically lose your equity.
read this again, wrong math here...I meant to say that basically your returns are magnified, in this case 5 to 1. (i.e. if house goes down by 1% you basically lose 5% of your down payment)
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