Deleted
Joined: May 3, 2024 6:27:23 GMT -5
Posts: 0
|
Post by Deleted on Jul 21, 2020 15:49:18 GMT -5
I really, really just want to suck it up for a couple years. It would be easy with the 15K. I'll keep letting this loan go, he was talking about maybe even being able to get me less than 2.4% and lower closing costs. I'm not sure how long I have to back out? The bitter end when the docs are signed?
|
|
debthaven
Senior Associate
Joined: Apr 7, 2015 15:26:39 GMT -5
Posts: 10,349
Member is Online
|
Post by debthaven on Jul 21, 2020 16:09:27 GMT -5
I think all you need to do is tell him the truth ... that you are considering this refi but you don't know yet.
|
|
phil5185
Junior Associate
Joined: Dec 26, 2010 15:45:49 GMT -5
Posts: 6,409
|
Post by phil5185 on Jul 21, 2020 16:48:50 GMT -5
You have $300k or $400k in real estate (land & buildings), roughly $150k in investments, plus some cash accounts. And an offsetting $95k loan. About $500k of assets and a $95k liability. Ie, about a net worth of $405k. Only about $150k (Fid) of your $500k assets is invested in wealth-building.
I would put about a $250k, 30 year, fixed rate loan on the house (no need to keep your assets locked into real estate). Then add about $150k to your existing $150k fidelity fund. No balloons, no helocs, no designer loans - just a single straight-up 30-year FR mortgage. And resist your continuing urge too prepay - keep it for the full 30-year term.
|
|
CCL
Junior Associate
Joined: Jan 4, 2011 19:34:47 GMT -5
Posts: 7,599
|
Post by CCL on Jul 21, 2020 17:21:32 GMT -5
I really, really just want to suck it up for a couple years. It would be easy with the 15K. I'll keep letting this loan go, he was talking about maybe even being able to get me less than 2.4% and lower closing costs. I'm not sure how long I have to back out? The bitter end when the docs are signed? Then do that. There, I've decided for you. Now you can sleep at night. Really, that's what you've been trying to do for years. It's been your goal for as long as anyone can remember. If the $15k is what gets you there, then accept it and use it to supplement your income for a while. You've done a great job managing your money, so it will all work out fine either way.
|
|
Lizard Queen
Senior Associate
103/2024
Joined: Jan 17, 2011 22:19:13 GMT -5
Posts: 14,659
|
Post by Lizard Queen on Jul 21, 2020 17:30:22 GMT -5
I still think you should at least do the cheap 10-year refi to get the payment to a little more manageable level.
|
|
Deleted
Joined: May 3, 2024 6:27:23 GMT -5
Posts: 0
|
Post by Deleted on Jul 21, 2020 17:44:38 GMT -5
You have $300k or $400k in real estate (land & buildings), roughly $150k in investments, plus some cash accounts. And an offsetting $95k loan. About $500k of assets and a $95k liability. Ie, about a net worth of $405k. Only about $150k (Fid) of your $500k assets is invested in wealth-building.
I would put about a $250k, 30 year, fixed rate loan on the house (no need to keep your assets locked into real estate). Then add about $150k to your existing $150k fidelity fund. No balloons, no helocs, no designer loans - just a single straight-up 30-year FR mortgage. And resist your continuing urge too prepay - keep it for the full 30-year term.
Where on earth are you getting these numbers? I have about 550K in retirement accounts (which includes 150K at Fidelity) and another 60K or so in the kid's college savings accounts and 40K combined in checking, savings and a small taxable account, As for taking out a 250K loan. No. Just no. Which is what I'm pretty sure the bank would say too! eta: According to my Phil Script, a lump sum investment of $550,000.00 bearing an annual return of 11% could grow to $2,631,524.22 in 15 years! Look at that! My goal is only 1.2 million going into retirement. I'll be living large not investing another dime!
|
|
gs11rmb
Senior Member
Joined: Dec 21, 2010 12:43:39 GMT -5
Posts: 3,304
|
Post by gs11rmb on Jul 22, 2020 7:39:56 GMT -5
phil5185 I understand your mathematical logic but this isn't an investment property this is MPL's home. I believe she turned 50 last year so if she took your suggestion she'd have a mortgage for roughly the first 15 years of retirement. A $250,000 30 year mortgage is going to be about $1100 plus taxes and insurance. I know MPL lives in a low cost area so say her total payment is $1300 per month. That's a lot of money that HAS to be paid every month when your income is fixed. What if the stock market tanks, what if she or one of her kids (God forbid) has a major medical emergency, what if... There's a lot of security in having your home owned free and clear. On a personal note, my DH and I have a mortgage at 3.875% that has 16 years left to go. It will be paid off when I'm 62 and my DH 71 and we're not prepaying. I don't have a problem with continuing to have a mortgage when DH retires but I want that sucker gone by the time we've both finished working.
|
|
Deleted
Joined: May 3, 2024 6:27:23 GMT -5
Posts: 0
|
Post by Deleted on Jul 22, 2020 7:47:53 GMT -5
DH and I have a mortgage at 3.875% that has 16 years left to go. 15 year rates at 2.4% now. Maybe YOU should refinance.
|
|
gs11rmb
Senior Member
Joined: Dec 21, 2010 12:43:39 GMT -5
Posts: 3,304
|
Post by gs11rmb on Jul 22, 2020 8:16:11 GMT -5
Hmmm... I’m tempted!
My husband is in Germany right now so not sure how we can both sign all the paperwork.
|
|
TheOtherMe
Distinguished Associate
Joined: Dec 24, 2010 14:40:52 GMT -5
Posts: 27,199
Mini-Profile Name Color: e619e6
|
Post by TheOtherMe on Jul 22, 2020 8:22:18 GMT -5
Docusign?
That is what my credit union has been using
|
|
Deleted
Joined: May 3, 2024 6:27:23 GMT -5
Posts: 0
|
Post by Deleted on Jul 22, 2020 9:26:57 GMT -5
Yeah. I've not had to be in person to sign anything. Docusign is what my CU used to change my rate on my HELOC and for the loan application.
|
|
Lizard Queen
Senior Associate
103/2024
Joined: Jan 17, 2011 22:19:13 GMT -5
Posts: 14,659
|
Post by Lizard Queen on Jul 22, 2020 9:39:27 GMT -5
I have 6.3 years left on a 3.875 mortgage. I could probably just pay it off. It's < $40k now. My DH is window shopping for a bigger house. We have to finish our remodeling projects before we even consider that. Even then, our location is perfect for when the kids start middle and high school--walking distance to both.
|
|
Deleted
Joined: May 3, 2024 6:27:23 GMT -5
Posts: 0
|
Post by Deleted on Jul 22, 2020 9:59:12 GMT -5
phil5185 I understand your mathematical logic but this isn't an investment property this is MPL's home. I believe she turned 50 last year so if she took your suggestion she'd have a mortgage for roughly the first 15 years of retirement. A $250,000 30 year mortgage is going to be about $1100 plus taxes and insurance. I know MPL lives in a low cost area so say her total payment is $1300 per month. That's a lot of money that HAS to be paid every month when your income is fixed. What if the stock market tanks, what if she or one of her kids (God forbid) has a major medical emergency, what if... There's a lot of security in having your home owned free and clear. Forget about retirement. I take home just $1100/month from my job now!
|
|
Deleted
Joined: May 3, 2024 6:27:23 GMT -5
Posts: 0
|
Post by Deleted on Jul 22, 2020 10:28:34 GMT -5
I have 6.3 years left on a 3.875 mortgage. I could probably just pay it off. It's < $40k now. I know what I'd do.
|
|
imawino
Junior Associate
Joined: Dec 17, 2010 22:58:16 GMT -5
Posts: 5,359
|
Post by imawino on Jul 22, 2020 13:06:47 GMT -5
I have 6.3 years left on a 3.875 mortgage. I could probably just pay it off. It's < $40k now. I know what I'd do. Take out a new 30-year mortgage for the max amount they would give you?!?!
|
|
imawino
Junior Associate
Joined: Dec 17, 2010 22:58:16 GMT -5
Posts: 5,359
|
Post by imawino on Jul 22, 2020 13:13:33 GMT -5
I really, really just want to suck it up for a couple years. It would be easy with the 15K. I'll keep letting this loan go, he was talking about maybe even being able to get me less than 2.4% and lower closing costs. I'm not sure how long I have to back out? The bitter end when the docs are signed? Then do that. There, I've decided for you. Now you can sleep at night. Really, that's what you've been trying to do for years. It's been your goal for as long as anyone can remember. If the $15k is what gets you there, then accept it and use it to supplement your income for a while. You've done a great job managing your money, so it will all work out fine either way. I agree with this, honestly. Does it give you the utmost financial flexibility? Nope. But, your goal hasn't seemed to be having the utmost financial flexibility - your main goal for years has been to get this house paid off. You have saved and scrimped and worked hard to get yourself in a position to do that. You've got to make the choices that are right for you to live with, and paying off the house will make you happy while extending the life of the mortgage will give you anxiety. You were strongly leaning toward sticking with this goal even before an extra $15k was thrown into the mix so if you have that extra cushion I say go for it. But I am interested to hear how the financial summit turns out!
|
|
Cookies Galore
Senior Associate
I don't need no instructions to know how to rock
Joined: Dec 19, 2010 18:08:13 GMT -5
Posts: 10,737
|
Post by Cookies Galore on Jul 22, 2020 13:45:29 GMT -5
I know what I'd do. Take out a new 30-year mortgage for the max amount they would give you?!?! One-size-fits-all advice ALWAYS works!
|
|
pulmonarymd
Junior Associate
Joined: Feb 12, 2020 17:40:54 GMT -5
Posts: 7,385
|
Post by pulmonarymd on Jul 22, 2020 14:00:45 GMT -5
Then do that. There, I've decided for you. Now you can sleep at night. Really, that's what you've been trying to do for years. It's been your goal for as long as anyone can remember. If the $15k is what gets you there, then accept it and use it to supplement your income for a while. You've done a great job managing your money, so it will all work out fine either way. I agree with this, honestly. Does it give you the utmost financial flexibility? Nope. But, your goal hasn't seemed to be having the utmost financial flexibility - your main goal for years has been to get this house paid off. You have saved and scrimped and worked hard to get yourself in a position to do that. You've got to make the choices that are right for you to live with, and paying off the house will make you happy while extending the life of the mortgage will give you anxiety. You were strongly leaning toward sticking with this goal even before an extra $15k was thrown into the mix so if you have that extra cushion I say go for it. But I am interested to hear how the financial summit turns out! I do think that she should do what lets her sleep at night. That bis not always the best approach, but people frequently get away with it. She has made it work so far, and has the discipline to make this work too, as long as Murphy does not rear his ugly head. As our current situation has demonstrated, bad things happen, and having some breathing room can be important.
|
|
CCL
Junior Associate
Joined: Jan 4, 2011 19:34:47 GMT -5
Posts: 7,599
|
Post by CCL on Jul 22, 2020 14:16:12 GMT -5
She would still have cash at hand, since she wants to use it to supplement income. I don't think she was ever considering paying it off all at once.
|
|
Rukh O'Rorke
Senior Associate
Joined: Jul 4, 2016 13:31:15 GMT -5
Posts: 10,046
|
Post by Rukh O'Rorke on Jul 22, 2020 15:11:19 GMT -5
So - take the 15k and just get on with it.
I think your shortfall is 900/month? so the 15k and 12.5k at 27.5k total in the kitty.
That will keep you going for 30 months. Is that enough to get to the point where you can decrease the 401k without impacting DS' aid package?
|
|
Deleted
Joined: May 3, 2024 6:27:23 GMT -5
Posts: 0
|
Post by Deleted on Jul 22, 2020 15:19:30 GMT -5
So - take the 15k and just get on with it. I think your shortfall is 900/month? so the 15k and 12.5k at 27.5k total in the kitty. That will keep you going for 30 months. Is that enough to get to the point where you can decrease the 401k without impacting DS' aid package? Yes, with 2 months to spare. Then I could easily cut 10K/year from retirement savings (and still have 15% going in), or just pay it off with Roth contributions.
|
|
Rukh O'Rorke
Senior Associate
Joined: Jul 4, 2016 13:31:15 GMT -5
Posts: 10,046
|
Post by Rukh O'Rorke on Jul 22, 2020 15:44:39 GMT -5
So - take the 15k and just get on with it. I think your shortfall is 900/month? so the 15k and 12.5k at 27.5k total in the kitty. That will keep you going for 30 months. Is that enough to get to the point where you can decrease the 401k without impacting DS' aid package? Yes, with 2 months to spare. Then I could easily cut 10K/year from retirement savings (and still have 15% going in), or just pay it off with Roth contributions. don't use your roths! so - looks like this case is closed.
|
|
Deleted
Joined: May 3, 2024 6:27:23 GMT -5
Posts: 0
|
Post by Deleted on Jul 22, 2020 16:05:45 GMT -5
Yes, with 2 months to spare. Then I could easily cut 10K/year from retirement savings (and still have 15% going in), or just pay it off with Roth contributions. don't use your roths! so - looks like this case is closed. Well, the one issue is I have a 3 year reprieve from 1/2023 to 1/2026. Then it all starts up again with younger son, but who knows what rules will be like by that time and 1/2026 I should only owe 18K.
Another issue...and the one I'm most concerned about...Ex 2.0 He's been stable for years, and I THINK he seems to be staying that way, but he's also a complete moron and as I've learned, things could change on a dime with him at any time. Loss of child support, custody battle, parental abduction. None of this is out of the realm at all.
Ah shit. I was sure I knew what I was going to do and now I'm on the fence again.
|
|
CCL
Junior Associate
Joined: Jan 4, 2011 19:34:47 GMT -5
Posts: 7,599
|
Post by CCL on Jul 22, 2020 16:44:34 GMT -5
Sometimes you just gotta go for it.
|
|
CCL
Junior Associate
Joined: Jan 4, 2011 19:34:47 GMT -5
Posts: 7,599
|
Post by CCL on Jul 22, 2020 16:47:02 GMT -5
I agree about not using the Roth. Maybe reduce contributions, but don't take anything out.
|
|
giramomma
Distinguished Associate
Joined: Feb 3, 2011 11:25:27 GMT -5
Posts: 21,336
|
Post by giramomma on Jul 22, 2020 17:05:20 GMT -5
This is a dumb question.. But whats the interest rate on the bonds? Have they stopped earning interest or is the interest rate decent? We have bonds from 2002ish, and those suckers are getting like 5% interest right now...which is pretty good rate of return for a "safer" investment these days. I'm not interested on cashing in the bonds until we absolutely have to. If you are going to really take the money, I depending on the rate, I would negotiate a different dispersal rate with your mom...and not just a 15K lump sum ASAP.
|
|
Wisconsin Beth
Distinguished Associate
No, we don't walk away. But when we're holding on to something precious, we run.
Joined: Dec 20, 2010 11:59:36 GMT -5
Posts: 30,626
|
Post by Wisconsin Beth on Jul 22, 2020 18:34:23 GMT -5
don't use your roths! so - looks like this case is closed. Well, the one issue is I have a 3 year reprieve from 1/2023 to 1/2026. Then it all starts up again with younger son, but who knows what rules will be like by that time and 1/2026 I should only owe 18K.
Another issue...and the one I'm most concerned about...Ex 2.0 He's been stable for years, and I THINK he seems to be staying that way, but he's also a complete moron and as I've learned, things could change on a dime with him at any time. Loss of child support, custody battle, parental abduction. None of this is out of the realm at all.
Ah shit. I was sure I knew what I was going to do and now I'm on the fence again. Psssst, you forgot alien abduction and/or the Rapture. lol
|
|
countrygirl2
Senior Associate
Joined: Dec 7, 2016 15:45:05 GMT -5
Posts: 16,929
|
Post by countrygirl2 on Jul 22, 2020 20:07:44 GMT -5
I have I bonds that were earning like crazy, not sure now the rates are so low. the fixed component plus variable rate. Not about to cash those, they mature in something like 2030. Last I checked the $60+ was over $120k, been since last year I think that I checked.
I've read now when they stop earning and they do, you have to pay taxes on them whether you cash them or not. Don't know about the old ones. Check it out.
We paid cash for our house too. $200k then $80k for outbuildings. Sure we could have earned more, but I too like sleeping at night. Have never regretted it.
Some of us need that stability.
I believe you said years ago Phil, your wife made you pay off their main home. Guess she feels that way too.
|
|
Deleted
Joined: May 3, 2024 6:27:23 GMT -5
Posts: 0
|
Post by Deleted on Jul 22, 2020 20:10:56 GMT -5
Well, the one issue is I have a 3 year reprieve from 1/2023 to 1/2026. Then it all starts up again with younger son, but who knows what rules will be like by that time and 1/2026 I should only owe 18K.
Another issue...and the one I'm most concerned about...Ex 2.0 He's been stable for years, and I THINK he seems to be staying that way, but he's also a complete moron and as I've learned, things could change on a dime with him at any time. Loss of child support, custody battle, parental abduction. None of this is out of the realm at all.
Ah shit. I was sure I knew what I was going to do and now I'm on the fence again. Psssst, you forgot alien abduction and/or the Rapture. lol You're right. I've now evaluated each of these possibilities and decided that making my mortgage payment wouldn't matter anymore at that point.
|
|
Deleted
Joined: May 3, 2024 6:27:23 GMT -5
Posts: 0
|
Post by Deleted on Jul 22, 2020 22:08:13 GMT -5
This is a dumb question.. But whats the interest rate on the bonds? Have they stopped earning interest or is the interest rate decent? We have bonds from 2002ish, and those suckers are getting like 5% interest right now...which is pretty good rate of return for a "safer" investment these days. I'm not interested on cashing in the bonds until we absolutely have to. If you are going to really take the money, I depending on the rate, I would negotiate a different dispersal rate with your mom...and not just a 15K lump sum ASAP.
So, I asked her and she said not much. "Some are very low 0.7%, and many 1.4-2.2, there are only about 3-4 thousand paying 3.4%." But, she wasn't really sure how much they were worth, so she sent me a list. It's 79 $250 bonds issued from 9/07 to 12/10. Which is $19,750 with no interest added on. I'm not sure if she was offering up all of them or what, but I have the list of all the bond numbers now to look them up if I want to. I'm also not sure what this has to do with Grandma as she died 11/10. eta: Not offering them all up. The value is somewhere around 25K, but she was thinking of giving me all the newest ones paying .6%
|
|