Platinum Contributing Member steve from amherst Posted April 5, 2018 Platinum Contributing Member Share Posted April 5, 2018 Just now, Angry ginger said: what does that have to do with anything. hell if i knew when i was going to die i would leverage myself to the hilt and blow it on hookers and blow because who really gives a fuck when your not going to have to pay it back. Kinda the way I see it. May the last check you ever write bounce. Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member Highmark Posted April 5, 2018 Platinum Contributing Member Share Posted April 5, 2018 Just now, Angry ginger said: depends on the state you live in. With no income tax here and a sub 3% mortgage rate even with a 9k property tax bill I will be taking the new standard deduction. I've played this scenario he is asking for that reason and honestly there is no cut and dry answer to it. Using Ramsey's calculator is kind of funny given he would be a guy to tell you to get it paid off ASAP Yeah he isn't quite so harsh on mortgages but he would be saying pay it off. Paying it off and maxing out a Roth isn't the worst plan. Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member steve from amherst Posted April 5, 2018 Platinum Contributing Member Share Posted April 5, 2018 Don't wanna be broke in retirement , or the wealthiest dude in the cemetary. Quote Link to comment Share on other sites More sharing options...
Angry ginger Posted April 5, 2018 Share Posted April 5, 2018 Just now, steve from amherst said: Kinda the way I see it. May the last check you ever write bounce. I will go out with a reverse mortgage on my property just like my parents. For too many it's their biggest asset yet also even with no mortgage their biggest expense outside medical in old age and it's not benefiting them just their heirs being dead money Quote Link to comment Share on other sites More sharing options...
Dave Posted April 5, 2018 Share Posted April 5, 2018 1 minute ago, ArcticCrusher said: He is. I know what your saying....but still better to get rid of the mortgage. I always got rid of mine as fast as possible. I havent had a mortgage on a prime residence in a long time. Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member steve from amherst Posted April 5, 2018 Platinum Contributing Member Share Posted April 5, 2018 Racer , ya also need to look at your whole situation Married? Non adult kids? Wife work? Life ins? ect Quote Link to comment Share on other sites More sharing options...
02sled Posted April 5, 2018 Share Posted April 5, 2018 48 minutes ago, racer254 said: Say I have 20 years left on a mortgage that still has 150,000 on it at 5% I have the 150g to pay it off. Do I pay off the house or invest the money somewhere else? Pros and Cons for anyone who cares to comment. Not sure what the ROI on your investments is but if it's anything like here... keep it invested. Simple math. $150,000 invested with a 10% return gives you $15,000 more in your pocket. Take that money and pay off the mortgage you don't get the $15K. The mortgage at 5% is costing you $7,500 a year in interest. Leave the money invested, use 1/2 of the interest you earn to pay the interest on the mortgage and you're $7,500 ahead. Now instead of $150,000 earning interest going into the next year you have $157,500 earning interest. Quote Link to comment Share on other sites More sharing options...
Angry ginger Posted April 5, 2018 Share Posted April 5, 2018 Just now, steve from amherst said: Don't wanna be broke in retirement , or the wealthiest dude in the cemetary. thats what keeps me up at night Quote Link to comment Share on other sites More sharing options...
Im4snow Posted April 5, 2018 Share Posted April 5, 2018 46 minutes ago, racer254 said: Say I have 20 years left on a mortgage that still has 150,000 on it at 5% I have the 150g to pay it off. Do I pay off the house or invest the money somewhere else? Pros and Cons for anyone who cares to comment. Tough call. On avg stocks have delivered about 10% annually. But we've had 9+ years of a positive stock market, so today you'd be starting at a relatively high price (base).....meaning the avg returns over the next 10-20 years, from today, probably won't match the long term avg. Your interest rate, net of taxes is probably less than 4%. In a world with probable higher inflation......cheap fixed borrowing costs are a good thing. Quote Link to comment Share on other sites More sharing options...
Dave Posted April 5, 2018 Share Posted April 5, 2018 8 minutes ago, Angry ginger said: I will go out with a reverse mortgage on my property just like my parents. For too many it's their biggest asset yet also even with no mortgage their biggest expense outside medical in old age and it's not benefiting them just their heirs being dead money I downsized huge...my house is 1000sq ft....paid 27g for it....its worth 100+ now....banked all the money from my house in Ontario that sold for dbl i paid. Fuck debt if you dont need it. 1 Quote Link to comment Share on other sites More sharing options...
Im4snow Posted April 5, 2018 Share Posted April 5, 2018 38 minutes ago, steve from amherst said: $ 549,143 Is investment income over 20 yrs . $150,000 initial deposit , $ 0 contributions , based on 8 % annual return. https://www.daveramsey.com/smartvestor/investment-calculator $150k at 8% for 20 years is $699k. Quote Link to comment Share on other sites More sharing options...
spin_dry Posted April 5, 2018 Share Posted April 5, 2018 You could refinance the home for a better rate. Use some of the money to buy some points and drop into a 10yr mortgage. Take the rest of the money and invest it in order to take advantage of the exceptional growth opportunities right now. Sort of a mix of ideas. The market is pretty fucking good right now. Quote Link to comment Share on other sites More sharing options...
ArcticCrusher Posted April 5, 2018 Share Posted April 5, 2018 18 minutes ago, DAVE said: I downsized huge...my house is 1000sq ft....paid 27g for it....its worth 100+ now....banked all the money from my house in Ontario that sold for dbl i paid. Fuck debt if you dont need it. You can't buy an outhouse here for what you paid. Quote Link to comment Share on other sites More sharing options...
Im4snow Posted April 5, 2018 Share Posted April 5, 2018 8 minutes ago, spin_dry said: You could refinance the home for a better rate. Use some of the money to buy some points and drop into a 10yr mortgage. Take the rest of the money and invest it in order to take advantage of the exceptional growth opportunities right now. Sort of a mix of ideas. The market is pretty fucking good right now. I like that strategy. Quote Link to comment Share on other sites More sharing options...
Dave Posted April 5, 2018 Share Posted April 5, 2018 9 minutes ago, Im4snow said: $150k at 8% for 20 years is $699k. Thats a nice chunk. Quote Link to comment Share on other sites More sharing options...
Dave Posted April 5, 2018 Share Posted April 5, 2018 1 minute ago, ArcticCrusher said: You can't buy an outhouse here for what you paid. My property tax was 54 bucks a yr when I moved here....its gone up to 157 a yr now.....i use to pay close to 3500 in Ontario. Quote Link to comment Share on other sites More sharing options...
Angry ginger Posted April 5, 2018 Share Posted April 5, 2018 4 minutes ago, spin_dry said: You could refinance the home for a better rate. Use some of the money to buy some points and drop into a 10yr mortgage. Take the rest of the money and invest it in order to take advantage of the exceptional growth opportunities right now. Sort of a mix of ideas. The market is pretty fucking good right now. 650/mo more to be in the 10 vs the remaining 20 for most makes that not a viable option. and paying points almost never makes sense on a shorter term loan. $4000 to buy 2 points and your seeing a savings of less than 50/mo so 7+- years to break even and if you financed them in your seeing no real savings as it's another 40/mo to your payment to finance them in. Quote Link to comment Share on other sites More sharing options...
02sled Posted April 5, 2018 Share Posted April 5, 2018 (edited) 13 minutes ago, ArcticCrusher said: You can't buy an outhouse here for what you paid. Hard to find a vacant lot for that... maybe in the middle of east arm pit Ontario I guess. Edited April 5, 2018 by 02sled Quote Link to comment Share on other sites More sharing options...
Dave Posted April 5, 2018 Share Posted April 5, 2018 3 minutes ago, 02sled said: Hard to find a vacant lot for that... maybe in the middle of east arm pit Ontario I guess. Prices were even cheaper here...i missed them by a couple yrs. Quote Link to comment Share on other sites More sharing options...
Snoslinger Posted April 5, 2018 Share Posted April 5, 2018 racer the high roller how did you suddenly come across $150k, that you are only now asking these questions? Quote Link to comment Share on other sites More sharing options...
Snoslinger Posted April 5, 2018 Share Posted April 5, 2018 fucking guy can't even do his 1040EZ taxes by himself Quote Link to comment Share on other sites More sharing options...
Dave Posted April 5, 2018 Share Posted April 5, 2018 4 minutes ago, Snoslinger said: racer the high roller how did you suddenly come across $150k, that you are only now asking these questions? TRUMP!!!!!!111 Quote Link to comment Share on other sites More sharing options...
spin_dry Posted April 5, 2018 Share Posted April 5, 2018 11 minutes ago, Angry ginger said: 650/mo more to be in the 10 vs the remaining 20 for most makes that not a viable option. and paying points almost never makes sense on a shorter term loan. $4000 to buy 2 points and your seeing a savings of less than 50/mo so 7+- years to break even and if you financed them in your seeing no real savings as it's another 40/mo to your payment to finance them in. I’m suggesting that he take a portion of the money that he has and use it as a down payment. That way the monthly payment would equalize out between the 15 and 10 year. He could also fetch a little better rate than 5%. Using the term points was misguided on my part. Quote Link to comment Share on other sites More sharing options...
Snoslinger Posted April 5, 2018 Share Posted April 5, 2018 Just now, spin_dry said: I’m suggesting that he take a portion of the money that he has and use it as a down payment. That way the monthly payment would equalize out between the 15 and 10 year. He could also fetch a little better rate than 5%. Using the term points was misguided on my part. this. he could get a shorter, lower interest rate ARM loan. I call BS on his little story here. Quote Link to comment Share on other sites More sharing options...
revkevsdi Posted April 5, 2018 Share Posted April 5, 2018 I'd agree with Dave. Debt free is great. DriftBitch claims the stocks average 8% if you look back 5 years they have climbed far above that average. So one would think your next 5 won't average 8%. With stocks high and interest rates low, worst case scenario you buy in before a market correction and interest rates go back to average rates. The result would be you'd be pissed off at the money you lost and you're paying a much higher mortgage rate. If the rates stay the same, you'd have to work out your taxes on the investment and whether you can write off your mortgage interest. Is the still something you are allowed to do in the US.? At the end of the day, if your house is paid for not much can hurt you. That peace of mind has value. 1 Quote Link to comment Share on other sites More sharing options...
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