Comments on: Should You Take That 0% Financing Offer? http://www.bargaineering.com/articles/should-you-take-that-0-financing-offer.html personal finance blog with anecdotes, advice and commentary. Sun, 12 Feb 2012 23:30:41 +0000 hourly 1 By: Joe http://www.bargaineering.com/articles/should-you-take-that-0-financing-offer.html/comment-page-1#comment-225277 Joe Mon, 24 Mar 2008 06:29:03 +0000 http://www.bargaineering.com/articles/should-you-take-that-0-financing-offer.html#comment-225277 What about the Time Value of money? That makes zero percent better right? Or the mortgage industries' debt to income ratio? Doesn't having more debt limit the amount you can borrow for the home purchase? What about the Time Value of money? That makes zero percent better right? Or the mortgage industries’ debt to income ratio? Doesn’t having more debt limit the amount you can borrow for the home purchase?

]]> By: FIRE Finance http://www.bargaineering.com/articles/should-you-take-that-0-financing-offer.html/comment-page-1#comment-151512 FIRE Finance Fri, 07 Sep 2007 02:38:45 +0000 http://www.bargaineering.com/articles/should-you-take-that-0-financing-offer.html#comment-151512 To complete the analysis, one may assume that the $275 earned in interest in the first scenario is invested for 30 yrs in some index fund. Assuming a historical 8% annualized avg returns it would swell to [275*((1+0.08)^30)=] $2767.23. Even then it is nowhere near $6618.08 (ignoring taxes). Hence we would stay away from taking the offer if there is a house mortgage coming up soon. To complete the analysis, one may assume that the $275 earned in interest in the first scenario is invested for 30 yrs in some index fund. Assuming a historical 8% annualized avg returns it would swell to [275*((1+0.08)^30)=] $2767.23. Even then it is nowhere near $6618.08 (ignoring taxes). Hence we would stay away from taking the offer if there is a house mortgage coming up soon.

]]> By: Patrick http://www.bargaineering.com/articles/should-you-take-that-0-financing-offer.html/comment-page-1#comment-151266 Patrick Thu, 06 Sep 2007 13:07:48 +0000 http://www.bargaineering.com/articles/should-you-take-that-0-financing-offer.html#comment-151266 I'm impressed. Earn $75 to buy that TV, and spend an extra $6k. I wouldn't have gone into the math that much, because I don't usually do store offered credit. I will usually go with my own and pay it off. I have done the zero percent deal before, but it was actually for opening a credit card. I got 1% cash back and 0% interest for 12 months. On a $15,000 house renovation, that is some nice money. Especially when you pay it all off before any interest kicks in. :) I’m impressed. Earn $75 to buy that TV, and spend an extra $6k. I wouldn’t have gone into the math that much, because I don’t usually do store offered credit. I will usually go with my own and pay it off.

I have done the zero percent deal before, but it was actually for opening a credit card. I got 1% cash back and 0% interest for 12 months. On a $15,000 house renovation, that is some nice money. Especially when you pay it all off before any interest kicks in. :)

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