Conversation Starter
Related Posts
Rising Star
Conversation Starter
Community Builder
More Posts
Silly first year staff
Azure Virtual Desktop Hi 🐠🐟 Looking for referrals for Azure Virtual Desktop #AVD #WVD Exp : 12 Please help me with referrals in your organisation. Email: quantum1232003@gmail.com Wipro Cognizant Accenture Capgemini HCL Technologies Infosys Deloitte USI EY India Cognizant Wipro Capgemini Accenture Deloitte Infosys
We want Problems, we don’t want solutions
Anonymous User
Additional Posts in Personal Investment Chatter
Is this for real?
Anyone else long on AMT?
Conversation Starter
After figuring out FI/RE I am less motivated.
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
Chief
In 2 to 5 years, when your house has appreciated and your wages have grown, you’ll be happy you got in when you did, especially if you look up the cost of rent for anywhere you were before.
Paying half of your mortgage every 2 weeks or even twice per month can make a substantial dent in your total interest paid. Every 2 weeks squeezes a full extra payment in, while paying twice a month doesn’t cost you any additional out of pocket. Due to how mortgage companies calculate interest on the principal, you’ll cut several years off of the mortgage this way.
Another option would be to rent out an extra room. Do you have a family? Are all bedrooms spoken for? If not, renting a room even at an under market rate can also go a long ways towards helping with affordability in the early years.
Chief
@indeed That’s kinda annoying. Is it a credit union?
None of my mortgage providers have charged a fee, but it’s been a pain to setup more than 1 payment in a month with some of them.
Rising Star
Are you paying PMI? Paying down till you can get rid of PMI sounds smart to me.
Otherwise, I’d keep retirement contributions as is. Odds are very high you return >5% in the long run. Sounds like you make plenty relative to your monthly payments. Sometimes the smart thing is doing nothing.
Your long term equity will increase. You are more than fine, owning an asset under your name
Us old / middle aged people will tell you that 4.875% actually isn't that high. I think my first mortgage was over 6%. Good chance it is tax deductible for you. I often don't agree with a lot of the advice / comments people make here on RE. It doesn't sound like you can't afford the mortgage, just that you are for whatever reason worried you are paying too much in interest. I would think about it this way if you want to re-assure yourself. If interest rates go up (can happen in inflationary environment), you will be glad you locked in these rates. If they go down, you will refi to get the lower rates and pay less than you thought when you bought the house. One of the nice things about homeownership is with potential rate declines, your cost of housing can go down over time. As a wise woman once said: Things change, people change, hairstyles change, interest rates fluctuate.
When I purchased my first home interest rate was 13%. I thought it was a good rate at the time.
Compare annual interest and property tax with the rent that you would otherwise be paying
You’re golden dude what are you worried about?
Refinance when interest rates are low again, hopefully in a couple of years
Enthusiast
You can refi when timing is better.
I think it's somewhat unlikely that we'll see cheaper interest rates anytime soon. I expect rates to keep going up.
Conversation Starter
my post tax/ in hand amount is $7000 per month. Mortgage + escrow = 3100. I know some people will judge at the fact that the ratio is 30-40% and it might be dicey. The in hand amount is after I am on track to maxing my 401k, some contributions to roth 401k and maxing my hsa. In addition, I am also contributing to 529 plan. My question is that if i am paying interest at 5%, should I hold off on contributing to certain investments that I mentioned earlier so that I can pay off my loan as soon as possible? I am contributing to these investment options as I feel that this is the time to average down, but I feel conflicted. What would you do in this situation?
Conversation Starter
No - the returns on your home will not make up for time lost investing in those other types. Can you keep contributing and paying your mortgage? This is the correct thing to do in this case. Consider it diversified as you have both real estate and other equity investments. While the return on your home % wise won't be as great over time as your 401k - it is the greatest leverage you can possibly get
Conversation Starter
Can you get a roommate to help you with your mortgage? If it's just you maybe a couple roommates.
I actually paid money in lump sum to drive interest rate down. I almost had a heart attack when I saw how much interest I was paying. After putting the lump sum, I’m in a much comfortable spot.