Imagine thinking an “MBA in finance” is supposed to impress people.
No shit the loss isn’t realized until you sell. If rates pop up to ~6% nobody is buying anyone’s 800k home nor able to borrow at that rate.
What a dumb fuck.
Do tell. I'm not the only one here whose folks were paying 15-16% on their first mortgage back in the early 70's. In fact over the last 50 years, the rates have been below 6% for about 10 of them.
No need to spaz like you're in some Tug thread.
I think my boss paid 18% in 1982 or thereabouts.
Of course, my money market account was paying 15% too.
If you were trying to save for retirement during the early to mid 80s the only investment advice you'd get would be to put your money into a CD.
My first boss told me he could make 18 percent doing nothing so I had to do better
Just refi'd to a 15 year fixed at 2.375% in November. Immediately went from paying about 57% to the interest each month to paying 72% toward the principal each month. Playing around with paying an additional $500 each month and the savings in interest over the life of the loan are not insignificant. I went from thinking I'd always have a mortgage to realistically paying this place off in less than 10 years. If I can get my wife to stop buying expensive cars and put that money toward the mortgage I could have the place paid off before I retire.
That's a good deal. If you're convinced like @HoustonHusky that the Fed will keep this house of cards propped up for a while longer, you might take that $500 and put in the market. The net gain is easy against 2.375% interest, and your house is increasing in value as well.
I went to a 15 year back a billion years ago at 4.5%, which relative to where they'd been bumping along was like a home run for timing the market. It was miraculous. And that 15 years flew by quickly. No question that in hindsight that move will be amongst the most significant financial moves you'll ever make unless you get in on some private equity thing and hit it out of the park or unless you're one of thee investment wizbangs that lurk around here. I am not that person. I don't have the balls for it.
This...although you can put it in a basket of gold, value stocks, watches, guns, etc... Although I say these things but I'm not running out to go refinance/cash-out my mortgage to do the same...not too far from having it to a point I can write a check and pay it off anytime and I kinda like that comfort. My brother is turning his backyard into basically a resort...he has the cash to pay it off tomorrow but the bank is willing to loan him the $$$ at some god-awful low interest rate I could never get and he's going to take them up on it.
Just refi'd to a 15 year fixed at 2.375% in November. Immediately went from paying about 57% to the interest each month to paying 72% toward the principal each month. Playing around with paying an additional $500 each month and the savings in interest over the life of the loan are not insignificant. I went from thinking I'd always have a mortgage to realistically paying this place off in less than 10 years. If I can get my wife to stop buying expensive cars and put that money toward the mortgage I could have the place paid off before I retire.
That's a good deal. If you're convinced like @HoustonHusky that the Fed will keep this house of cards propped up for a while longer, you might take that $500 and put in the market. The net gain is easy against 2.375% interest, and your house is increasing in value as well.
I went to a 15 year back a billion years ago at 4.5%, which relative to where they'd been bumping along was like a home run for timing the market. It was miraculous. And that 15 years flew by quickly. No question that in hindsight that move will be amongst the most significant financial moves you'll ever make unless you get in on some private equity thing and hit it out of the park or unless you're one of thee investment wizbangs that lurk around here. I am not that person. I don't have the balls for it.
There is something comforting to me psychologically about having my house completely paid off free and clear. I know that it doesn't always make sense financially but being the cheapskate I am I love not owing anyone one else money and not paying any interest. Besides, the wife and I both put the maximum in our 401Ks every year and have been doing so for over 25 years and I'm old enough now that I also have been maxing the catch up amount as well each year, I really don't feel the need to be putting anymore money in the market each year. The power of compound interest is a beautiful thing. Greatest move I have ever made financially was just leaving my money in simple index funds and not touching it. Yeah I could have probably made more by chasing some hot stocks but really, how much does a guy like me need to retire?
Just refi'd to a 15 year fixed at 2.375% in November. Immediately went from paying about 57% to the interest each month to paying 72% toward the principal each month. Playing around with paying an additional $500 each month and the savings in interest over the life of the loan are not insignificant. I went from thinking I'd always have a mortgage to realistically paying this place off in less than 10 years. If I can get my wife to stop buying expensive cars and put that money toward the mortgage I could have the place paid off before I retire.
That's a good deal. If you're convinced like @HoustonHusky that the Fed will keep this house of cards propped up for a while longer, you might take that $500 and put in the market. The net gain is easy against 2.375% interest, and your house is increasing in value as well.
I went to a 15 year back a billion years ago at 4.5%, which relative to where they'd been bumping along was like a home run for timing the market. It was miraculous. And that 15 years flew by quickly. No question that in hindsight that move will be amongst the most significant financial moves you'll ever make unless you get in on some private equity thing and hit it out of the park or unless you're one of thee investment wizbangs that lurk around here. I am not that person. I don't have the balls for it.
There is something comforting to me psychologically about having my house completely paid off free and clear. I know that it doesn't always make sense financially but being the cheapskate I am I love not owing anyone one else money and not paying any interest. Besides, the wife and I both put the maximum in our 401Ks every year and have been doing so for over 25 years and I'm old enough now that I also have been maxing the catch up amount as well each year. The power of compound interest is a beautiful thing. Greatest move I have ever made financially was just leaving my money in simple index funds and not touching it. Yeah I could have probably made more by chasing some hot stocks but really, how much does a guy like me need to retire?
We have a thread on that.
Makes sense. I do not like the idea of a mortgage either and always maintained a year's worth (or more) of mortgage payments in a cash account that I just made myself forget was there.
Imagine thinking an “MBA in finance” is supposed to impress people.
No shit the loss isn’t realized until you sell. If rates pop up to ~6% nobody is buying anyone’s 800k home nor able to borrow at that rate.
What a dumb fuck.
Do tell. I'm not the only one here whose folks were paying 15-16% on their first mortgage back in the early 70's. In fact over the last 50 years, the rates have been below 6% for about 10 of them.
No need to spaz like you're in some Tug thread.
I think my boss paid 18% in 1982 or thereabouts.
Of course, my money market account was paying 15% too.
If you were trying to save for retirement during the early to mid 80s the only investment advice you'd get would be to put your money into a CD.
If I’d have called you on a Monday night during NFL football on your landline, while you were eating spaghetti, in your living room, I can assure you good sir, we wouldn’t be discussing CD’s.
We’d be talking Monday Night Specials, limited quantity Zero Coupon Thirty Year USTreasuries that we intend to hold for a week or a month in Increments YOU can afford.
Better hurry, going, going, gone. I’ll call you next Monday.
Imagine thinking an “MBA in finance” is supposed to impress people.
No shit the loss isn’t realized until you sell. If rates pop up to ~6% nobody is buying anyone’s 800k home nor able to borrow at that rate.
What a dumb fuck.
Do tell. I'm not the only one here whose folks were paying 15-16% on their first mortgage back in the early 70's. In fact over the last 50 years, the rates have been below 6% for about 10 of them.
No need to spaz like you're in some Tug thread.
Interest rates never hit 15-16% at anytime in the 1970s let alone the early 70s but cool story bro. It's almost like a story a whiney Kunt would tell.
At this bored, we say, "You must be mistaken, good sir."
Comments
No pressure
He's the smarter (and richer) one...
Makes sense. I do not like the idea of a mortgage either and always maintained a year's worth (or more) of mortgage payments in a cash account that I just made myself forget was there.
Fucking community property laws.
We’d be talking Monday Night Specials, limited quantity Zero Coupon Thirty Year USTreasuries that we intend to hold for a week or a month in Increments YOU can afford.
Better hurry, going, going, gone. I’ll call you next Monday.