FWIW.... I agree with Caymen on this one. Control what you pay, don't let a bank tell you what to pay. I have used Wells Fargo for many years on several different properties. Total of 9 I think. Mostly investments, but also for our persoanl home. I have had ZERO issues with them. I would suggest instead of opting to switch to a 15 yr, look into bi-weekly. I started that through Wells Fargo about two or three years ago, on top of that I added an additional 2-300 bucks a month to the payment. The years are dropping off quickly as far as the payoff date. Back then I did not pay to switch to Bi-weekly, and I would not suggest paying now.. I am pretty sure they do not charge for the switch. I also prefer it because I, also, hate large payments. The Bi-weekly, even though technically you are paying more, seems less of a hit, as far as a payment status. Splitting it in half. Look into it before you lock into something different.. I guess you need to decide what's best for your situation, and future.. I'm ex military, and don't use USAA. I know many people that do for Auto, but as far as mortgages, I know many that can get better deals elsewhere. Good luck!!!
mortgages
- Thread starter Mike Roncarati
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Yup, you are still an idiot. My comment was a joke. Don't take yourself too seriously. Nobody really cares.
Tom
Thomas Rogers
Well-Known Member
I care. I really do.
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.
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Actually, I don't give two sh!ts. I just like slamming people that make absolute assertions, as it "almost" always easy to prove them wrong.
:banana:
Carry on...continue your hate.
TJR
Mike Roncarati
Active Member
damn
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If the shoe doesn't fit. You original "compliment" was actually an insult. You know it was.
Oh well, same old Richard L...."Mr. Iamsomuchbetterthanyouallare"
Tom
Jacob Dryer
Well-Known Member
Lets go with... Leave it alone with the personal crap. Mortgage talk to "closely" related or drop it.
Gavin Allan
Well-Known Member
fftopic:Carey Frennier
Well-Known Member
I think the point of an accelarated mortgage is that they compound interest by-monthly instead of monthly so the overall accrued interest is less money. That alone saves you nearly a decade of interest. Then, more of your payment goes to principal.
I decided to do exactly what Caymen does. I'm still gathering information about the accelarated mortgage before I sign up for one with my mortgage company.
I decided to do exactly what Caymen does. I'm still gathering information about the accelarated mortgage before I sign up for one with my mortgage company.
Gavin Allan
Well-Known Member
I do what Caymen does too. I can enjoy a shorter mortgage, but I don't have to worry as much about having to make a big payment if my life goes to crap for some reason.
Jacob Dryer
Well-Known Member
Those of you who make larger payments than required are you sitting on a saving account with enough to sustain you for 3-6 months should you lose your job or get injured?
I'm by no stretch a financial planner, but I can repeat what ours told us :rofl:
I'm by no stretch a financial planner, but I can repeat what ours told us :rofl:
Gavin Allan
Well-Known Member
Yeah, have a bunch of money in savings earning 1% when you can pay off a mortgage sooner and earn 6% plus get a tax deduction for the interest?
Yeah, that makes a lot of sense.
Yeah, that makes a lot of sense.
Jacob Dryer
Well-Known Member
So you don't keep any liquid/easy to get to assets? I hope the ish never hits the fan in your life...
Thomas Rogers
Well-Known Member
Gavin, sarcastic much? ;-)
JD makes excellent sense. Paying down extra on a mortgage is fine, but it is not as liquid as money in the bank.
The same issues that might make one need to fall back on that 3 to 6 month "safety net" savings account might also make it very difficult to tap extra home equity one might have created through extra principle payments. Issues like a job loss, for example.
JD is repeating sound advice. Just because you haven't heard it or don't understand or appreciate its basis, to me, is no reason for rude sarcasm. Seek first to understand...
TJR
JD makes excellent sense. Paying down extra on a mortgage is fine, but it is not as liquid as money in the bank.
The same issues that might make one need to fall back on that 3 to 6 month "safety net" savings account might also make it very difficult to tap extra home equity one might have created through extra principle payments. Issues like a job loss, for example.
JD is repeating sound advice. Just because you haven't heard it or don't understand or appreciate its basis, to me, is no reason for rude sarcasm. Seek first to understand...
TJR
Robert Thomas
Well-Known Member
I paid for my house as quickly as possible. I didn't buy a house I couldn't afford.
My neighbor bought a house that was way over valued without a down payment and that he could not afford. He stopped making payments. Me and all you other people that paid off your loans revalued his house at half the value, gave him a a new good rate, and paid some bank the balance.
Who is the stupid one?
:argue::argue: Life's to short.
My neighbor bought a house that was way over valued without a down payment and that he could not afford. He stopped making payments. Me and all you other people that paid off your loans revalued his house at half the value, gave him a a new good rate, and paid some bank the balance.
Who is the stupid one?
:argue::argue: Life's to short.
Robert Thomas
Well-Known Member
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Gavin Allan
Well-Known Member
TJR, if you enjoy giving your money to the bank so they can make money off it, then by all means, pay the least you can get by with on your mortgage so the bank can get all 30 years of it. Put all the money you can in a savings account so the bank can use your money to make a lot more, but only give you 1%.
To each his own, but I am sure that your bank is happy to have you as a customer.
To each his own, but I am sure that your bank is happy to have you as a customer.
Jacob Dryer
Well-Known Member
Gavin did you read what I wrote?
It doesn't have to be a savings account (granted I did say that at first) it can be any liquid asset. So any investment you can get your money out of easily without paying fees/fines.
Paying your mortgage off faster doesn't make you any money either.. It just doesn't cost you as much. If you invest at 6% and have a 4.5% mortgage.. who's coming out ahead now? And you still have something to fall back on in a worst case scenario.
It doesn't have to be a savings account (granted I did say that at first) it can be any liquid asset. So any investment you can get your money out of easily without paying fees/fines.
Paying your mortgage off faster doesn't make you any money either.. It just doesn't cost you as much. If you invest at 6% and have a 4.5% mortgage.. who's coming out ahead now? And you still have something to fall back on in a worst case scenario.
Thomas Rogers
Well-Known Member
Gavin said:
Who here was talking about "me", exactly?
I think you presume too much.
JD and I were talking about the conventional wisdom of having 3 to 6 months salary in some form of liquid assets, and doing that FIRST, before any other type of investing...one such type of secondary investing might be paying off a mortgage early.
You may not be able to appreciate what is being said; but clearly the guy that ONLY paid extra on his mortgage principle and THEN lost his job and couldn't find another one for several months is probably not in as good a position as another guy that FIRST saved several months of salary into some liquid fund in case of a long period of joblessness. The first guy can't (as easily, if at all) use his increased equity to pay his mortgage...not as easily and as readily as the 2nd guy can do with his liquid assets.
I'm not sure why this is so controversial.
Of course, investing in a savings account at 1% or paying off a 6% mortgage early is a no brainer. But that's not what we are talking about here. That is what YOU are talking about. What JD is talking about is having liquid assets available, at all times, in order to pay one's bills in case of an extended job loss. JD pointed out that the conventional financial wisdom is that such liquid savings is something that is done first and foremost...a non-negotiable, if you will.
TJR
Who here was talking about "me", exactly?
I think you presume too much.
JD and I were talking about the conventional wisdom of having 3 to 6 months salary in some form of liquid assets, and doing that FIRST, before any other type of investing...one such type of secondary investing might be paying off a mortgage early.
You may not be able to appreciate what is being said; but clearly the guy that ONLY paid extra on his mortgage principle and THEN lost his job and couldn't find another one for several months is probably not in as good a position as another guy that FIRST saved several months of salary into some liquid fund in case of a long period of joblessness. The first guy can't (as easily, if at all) use his increased equity to pay his mortgage...not as easily and as readily as the 2nd guy can do with his liquid assets.
I'm not sure why this is so controversial.
Of course, investing in a savings account at 1% or paying off a 6% mortgage early is a no brainer. But that's not what we are talking about here. That is what YOU are talking about. What JD is talking about is having liquid assets available, at all times, in order to pay one's bills in case of an extended job loss. JD pointed out that the conventional financial wisdom is that such liquid savings is something that is done first and foremost...a non-negotiable, if you will.
TJR
