06-14-2020, 10:39 AM | #23 | |
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06-14-2020, 10:40 AM | #24 |
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It's 3.5% currently - not exceptional, but not bad at all really. I would struggle to refi at a dramatically better rate without paying a lot in points.
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06-14-2020, 10:44 AM | #25 | |
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But you never know. Met someone recently that I might have become rather fond of. And if we're together, no way will she let me sell the car collection - she's already got her eye on those! |
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06-14-2020, 10:47 AM | #26 | |
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Also, with respect to the interest deduction, the only portion that is relevant is the portion that gets your itemized deductions over the standard deduction. If, for example, you are itemizing just over the standard deduction, that isn’t much of a benefit vs. the standard deduction that you would get even with zero interest.
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06-14-2020, 11:47 AM | #27 | |
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06-14-2020, 04:30 PM | #28 |
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There really isn't one best option that applies to everyone the same. You have to determine what you are comfortable with.
As far as refinancing, if you currently have a fixed rate loan, the original lender still owns the loan, and you want no money back, then you can recast your loan instead of a refinance. Call your mortgage company to see if you qualify and what they charge. Last time I did it my fee was 500 bucks. |
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06-14-2020, 05:55 PM | #30 | ||
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I think we should be the ones asking you for financial advise, not the other way around. |
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06-14-2020, 09:30 PM | #31 |
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06-15-2020, 02:38 PM | #32 | |
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Being 50 makes your expected investment horizon a little shorter than would be optimal for an all market portfolio (expecting you will want to retire in your early/mid 60s). I feel like my investments will beat out my interest rate on my loan, probably with just inflation alone.
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06-15-2020, 06:14 PM | #33 | |
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I have a group life policy from work that will pay off the house and still provide over a year of my salary should I not make it to see the mortgage payoff, but SOB that I am there's no way that I'm giving up before the house is paid off...even if it kills me.....
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06-16-2020, 03:20 AM | #34 |
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If you get 7% year return like CALPERS then I'd invest.
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06-16-2020, 11:31 AM | #35 | |
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06-16-2020, 01:47 PM | #36 |
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When I bought the house, I intended to flip it in three years for a 25% profit that was common here historically at the time. Then, the bubble popped, and silly me decided to do the responsible thing and NOT walk away from my under-water mortgage. My group term life policy from work would have covered the mortgage amount from day one, so it wasn't a concern until it was too late.....
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06-16-2020, 01:53 PM | #37 | |
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What does matter is cash flow. If retirement creates a cash flow deficit then you might be over leveraged or too early to retire and lose work income. |
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06-16-2020, 02:19 PM | #38 | |
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I personally am planning on getting into an FIA or similar product before retirement so that I can have a known and reliable income for the rest of my life. Whatever does not go into that will likely be play money and extra spending cash. I think you would be hard pressed to find a financial analyst that would suggest you stay risky when you no longer have an income to fund the account, hence the reason the time horizon matters. That and a longer time horizon takes a lot more volatility out of the returns.
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06-16-2020, 02:33 PM | #39 | |
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06-16-2020, 02:33 PM | #40 | |
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06-16-2020, 03:50 PM | #41 | |
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08-13-2020, 11:51 AM | #42 | |
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I also went the first 27 years of my professional life (I'm 50) without one, they aren't needed, and the more important question to make is if you are willing to be educated enough to not need one. If you have no interest in figuring out what to do then you need one far more than someone else. Even then you need to be educated as you shouldn't completely trust anyone with your money (taxes, insurance, investments, mortgage, whatever). Also add that the more money you have the percentage charged goes down. You can also pay flat fees to people where you pay them for a job, not a percentage of your investments. Both have their benefits. As for the original question, the idea of refinancing has to include how long you plan to be in the house and how much it will drop your interest rate. Then comes all of the other benefits. I have a 15 year mortgage at 2.75 that I am about half way through. I think the best money decision is to invest excess but I plan to start paying the mortgage down starting at the end of the year (spending a lot of money now on a rental). Doing it because I like the idea of eventually not owing anyone anything, even if there are better places to put my money. It also reduces the amount of cash I hold in case I lose my job as I wouldn't need nearly as much.
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08-13-2020, 01:35 PM | #43 | |
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After doing the math though, throwing 15% more towards the principle each month doesn't really shave off much interest at all at this point though. Yeah, you'll go ~1 year less without having to make mortgage payments, but all that money is going to principal that late in the game anyway. If anything, your point about not having expenses if you lose your job should be playing devils advocate here; not strengthening your idea of just throwing it at the house. Assume you lose your job in the next ~8 years? Then what? I'm assuming u have savings, but it would be a lot nicer knowing u have a couple years worth of extra principal saved up on top of that to not have to stress it. |
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08-13-2020, 04:48 PM | #44 | |
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We both drive 2013's that are paid for, both with about 60k miles and expenses are low.
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