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15 yr mortgage loan vs 20 vs 30

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2FORCEFULL

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the last loan I did, more than a year ago...the only way I was able to,was because it was a vacation home...had it been a primary resident,.. the guy could have gotton away with not paying the loan...and no way could I of foreclosed...
 

BHC Vic

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there you go,... now that is correct... trump did a roll back, and the republicans want it gone.... put guys like me out of business...

but, as is current law.... you give out a loan you better be damn sure that you did the homework to make sure that they can repay at the point of signing or your gonna eat the loan....
Why was Dodd frank put into place or revised? I’m going to look it up when I get to my meeting but I have no idea
 

2FORCEFULL

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there is also a loop hole in vacant land loans..which I do,..I have a new home that coming up for sale that I would like to carry the paper on.... but dodd frank has me scared...so pretty much has to be a vacation home for some one...LOL.... there it is ...
 

2FORCEFULL

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Why was Dodd frank put into place or revised? I’m going to look it up when I get to my meeting but I have no idea
it was laws to protect people from biting off more than they can chew and cry'n about it latter....they should have never gotton loans to begin with.. the whole crash was drivin by credit criminals... on both sides...people buy 500k rv's worth 300 the next year.... they still have to keep paying,.... but the housing market people think it has to be worth whats owed or they walk... and get forgivin…. when it should have been that they have to just stay put till they get into a positive equity … what dodd frank does is force the lender to lower the amount owed so they don't walk on the note...and they have to do it...
 

BHC Vic

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it was laws to protect people from biting off more than they can chew and cry'n about it latter....they should have never gotton loans to begin with.. the whole crash was drivin by credit criminals... on both sides...people buy 500k rv's worth 300 the next year.... they still have to keep paying,.... but the housing market people think it has to be worth whats owed or they walk... and get forgivin…. when it should have been that they have to just stay put till they get into a positive equity … what dodd frank does is force the lender to lower the amount owed so they don't walk on the note...and they have to do it...
The first time I bought a home the mortgage dude said no problem we can get creative. That was in 2010. When my buddy who own an IT business bought 5 years ago in chino hills the exact same words were used. That’s kind of scary. When I bought in 2010 I was a third stage apprentice. How anyone loaned me money is crazy. I’m going to assume it was my wife’s status at that time. Any rate this thread has been very informative to me. I’ve learned more than what I came in with and that’s a good thing
 

LargeOrangeFont

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Whats laughable Orange,
You readily admit the Mortgage Industry has no Ethics,
But you defend it over and over. You have not debated their Ethics once...

A paid professional, should have a Ethical boundary to there customers. Very simple to figure out. Most industrys have those standards.

This industry rewards the “Salesman” (wont call them a pro), pushing substandard products to make more commissions. Under the guise of being a pro, and having the consumers best interest at heart.

You admit Mortgage Industry has no Ethics right?
Mortgage Brokers chose to work in an Un Ethical Industry.. no one puts a gun to there head... do they???
They chose the job... didnt they...
So they made that choice right... tell me where I am wrong?

The best thing is... Mortgage Brokers will not be around for much longer. The digital age is already having huge impact on them. Like Blockbuster... they will dissappear...

I never said it was an unethical industry as a whole and all brokers are crooks. I’ll ask you to show me where I did. I said TRUST BUT VERIFY. It is part of being a responsible adult and not blaming others for your own misfortunes. Tell me who got coerced into a refi by a broker?

All my previous mortgages have been done by a close friend.. and I STILL read and understood what I signed up for, before entering the deal.

What makes you think the mortgage spit out to you by an app will be any different? You’ll just blindly trust the machines and the mortgage company I guess. I however won’t.
 

LargeOrangeFont

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The first time I bought a home the mortgage dude said no problem we can get creative. That was in 2010. When my buddy who own an IT business bought 5 years ago in chino hills the exact same words were used. That’s kind of scary. When I bought in 2010 I was a third stage apprentice. How anyone loaned me money is crazy. I’m going to assume it was my wife’s status at that time. Any rate this thread has been very informative to me. I’ve learned more than what I came in with and that’s a good thing

Well you didn’t default on the 2010 loan right? Seems like the bank made a sound decision then.
 

BHC Vic

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In 2010 I probably shouldn’t have got the loan. It worked out... I didn’t know I shouldn’t do it, I just really never imagined I wouldn’t be able to do it. I guess I was just one of those stupid buyers. I had no ill intent I just wanted to start my life. Could have gone really bad but luckily it didn’t
 

BHC Vic

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Well you didn’t default on the 2010 loan right? Seems like the bank made a sound decision then.
That’s not my personality. One way or another I would figure it out.like 2ff said the criminal shit can go both ways.
 

Xring01

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In 2010 I probably shouldn’t have got the loan. It worked out... I didn’t know I shouldn’t do it, I just really never imagined I wouldn’t be able to do it. I guess I was just one of those stupid buyers. I had no ill intent I just wanted to start my life. Could have gone really bad but luckily it didn’t

So are you saying that a Mortgage Broker, was able to get you a loan that you probably shouldnt have gotten?
If thats true,,, that was in 2010 right? Wonder why Dodd Frank rules allowed that?

Could it be an Un Ethical Mortgage broker showed you how to get around all the hurdles? Doing what it takes to make $$$? But hey that guy gave you your dream... Home Ownership...

Shortly after the Lights went on and you figured out you where in a world of financial turmoil... Right....

Luckily for you the value of the home you purchased went up enough to cover all the expenses of selling it...

Please tell me where I am off base on this analysis...
 

Tobester

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Here's how I am paying off my mortgage - 30 year Fixed.

I borrowed $50K from my annuity. I pay this off every year and any interest I pay on this borrowed money is applied to my account not a bank. Basically paying myself to borrow money. If the economy changes or something happens this loan is $550 per month. So not much risk.

Use the $50K for a mortgage payment at the beginning of each year. By doing this the mortgage will be paid off in 10 years and 8 months. This method is a little better than applying additional principal every month because by making the bulk payments it substantially drops your principal so throughout the year your paying less interest. Payments February through December will be applied more to principal than making additional principal payments each month.

With bulk annual payments I am projecting to save $60K more rather than applying $2,083 each month to principal.

Its not easy and not everyone has the opportunity to borrow money this way but if you can, run the numbers see how much you can save.
 

BHC Vic

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So are you saying that a Mortgage Broker, was able to get you a loan that you probably shouldnt have gotten?
If thats true,,, that was in 2010 right? Wonder why Dodd Frank rules allowed that?

Could it be an Un Ethical Mortgage broker showed you how to get around all the hurdles? Doing what it takes to make $$$? But hey that guy gave you your dream... Home Ownership...

Shortly after the Lights went on and you figured out you where in a world of financial turmoil... Right....

Luckily for you the value of the home you purchased went up enough to cover all the expenses of selling it...

Please tell me where I am off base on this analysis...
That’s exactly what I’m saying... we didn’t go o down I think we put 12k down on a $250k loan. I jumped into adulthood very very fast with both feet. My wife and I both work extremely hard and pulled it off but damn thinking about it now that was a crazy move. I have amazing parents who aren’t going to let me fail, but shit. Not everyone has that. Crazy. Like I said I was a third period apprentice and I was a kid who likes taking summers off. My work history was patchy at best.
 

BHC Vic

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Here's how I am paying off my mortgage - 30 year Fixed.

I borrowed $50K from my annuity. I pay this off every year and any interest I pay on this borrowed money is applied to my account not a bank. Basically paying myself to borrow money. If the economy changes or something happens this loan is $550 per month. So not much risk.

Use the $50K for a mortgage payment at the beginning of each year. By doing this the mortgage will be paid off in 10 years and 8 months. This method is a little better than applying additional principal every month because by making the bulk payments it substantially drops your principal so throughout the year your paying less interest. Payments February through December will be applied more to principal than making additional principal payments each month.

With bulk annual payments I am projecting to save $60K more rather than applying $2,083 each month to principal.

Its not easy and not everyone has the opportunity to borrow money this way but if you can, run the numbers see how much you can save.
My coworker does something very similar to this. I’m always up for hearing other ways people use their money.
 

LargeOrangeFont

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So are you saying that a Mortgage Broker, was able to get you a loan that you probably shouldnt have gotten?
If thats true,,, that was in 2010 right? Wonder why Dodd Frank rules allowed that?

Could it be an Un Ethical Mortgage broker showed you how to get around all the hurdles? Doing what it takes to make $$$? But hey that guy gave you your dream... Home Ownership...

Shortly after the Lights went on and you figured out you where in a world of financial turmoil... Right....

Luckily for you the value of the home you purchased went up enough to cover all the expenses of selling it...

Please tell me where I am off base on this analysis...


The part where he made the payments is where you are off base...
 

Xring01

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BHC Vic, just agreed that in 2010, Mortgage Broker got him into a mortgage he shouldnt have gotten... and further agreed that guy probably did some Un Ethical stuff..
Please review Post 158 ,160 & 162....

Which put him in a difficult situation...

BHC Vic ... some people on this thread, 100% blame you, for not reading and understanding everything in the Documents you signed.

Now that you have gone thru this! And Learned, Do you think they took advantage of you being a bit young and naive?

Do you think the Broker had your best interest at heart? Or His?

Will you ever trust a Broker again?

Most importantly... how would you rate that the Mortgage Industrys Ethics today?
Say a scale of 1- 10....

10 being Falling on sword, jumping on a grenade type hero/ethical shit...
1 - closer to a terrorists or a child molestor?
 

Mototrig

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What is the "overage" that is added to my mortgage each year? It's $12-15 per year that is added to my mortgage each year in the January payment.
 

jeepdog

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BHC Vic, just agreed that in 2010, Mortgage Broker got him into a mortgage he shouldnt have gotten... and further agreed that guy probably did some Un Ethical stuff..
Please review Post 158 ,160 & 162....

Which put him in a difficult situation...

BHC Vic ... some people on this thread, 100% blame you, for not reading and understanding everything in the Documents you signed.

Now that you have gone thru this! And Learned, Do you think they took advantage of you being a bit young and naive?

Do you think the Broker had your best interest at heart? Or His?

Will you ever trust a Broker again?

Most importantly... how would you rate that the Mortgage Industrys Ethics today?
Say a scale of 1- 10....

10 being Falling on sword, jumping on a grenade type hero/ethical shit...
1 - closer to a terrorists or a child molestor?
vic had a dream, broker fulfilled it...simple
 

mbrown2

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The accountability is with the person to read and understand what they are signing up for. It is is not the mortgage broker’s job to tell you if you can afford the payment or not. It is on you to make that decision.

Wow this thread went sideways... I agree with this sentiment but also having worked for the largest mortgage bank at the heart of the 2008 collapse there were predatory practices involved when it came to designing and selling the b/c type products. The consumer is responsible for what they sign but if the mortgage broker, appraiser, bank, and government institutions that passed legislative reform, all start to push these programs the consumer becomes a bit misled. Then the loans are packaged with other A paper loans in a mortgage backed security and sold to investors on the secondary market (countries, unions municipals buying them) where they have a bag of good where they don't really understand the underlying risk... It was a recipe for disaster. Blame goes all the way around but yes; I hold the consumer just as accountable.
 

Xring01

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vic had a dream, broker fulfilled it...simple

Yep, its so simple, it almost cost BHC Vic a boat load....
Its that simple to mess up someones future.... that should scare everyone...

He got lucky, but the people buying houses in 2002-2007 didnt get lucky did they...

Thats how simple it is to screw over someones financial future, maybe a marriage or a job... or worse..., all because they trusted the Broker...

With no ramifications what so ever... Because its all about helping people live the american dream... ooooooo rrrrraaaaahhhhhh....

I want this thread to be the number one thread that pops up on google when people search Mortgage Brokers....
I want them to see where their loyaltys lie. Not with the customer, the bank that employ them.


LIke I said, keep giving me the ammo... Call me more names...

There are alot people firing away.

How many defend the Ethics of that Industry... ?????

The more they try, the deeper the hole gets... more story's/truth comes out. Thanks BHC Vic.
They have a 55 Gallon Drum of Excuses of why they screw people over..
Should re cap. on those... yes we should..cause it puts a smile on my face ;)
Its the Executives that created it....
Its Wallstreet for capitalizing on it...
Its helping the consumer fullfill the american dream...
Its the consumers responsibility to read every line and know what they are signing...

HOnestly, I cant wait for the next round of excuses they come up with...

But absolutely no accountability on the Mortgage Brokerage Industry, or the Brokers who sell people loans they know they can't afford.

Sometimes the Truth can be very scary.

Lets start asking real questions... TO THOSE IN THE INDUSTRY.. The Mortgage PROFESSIONALS....
When is the last time someone was fired for ethical violations?
When was the last time someone was calibrated for screwing over a customer?
Where is the Q/A random review of the last 100 loans? Should we Q/A 10% of them to verify our employees are living up to our high standards..

GUESS WHAT! I know the answer to this one... NOPE... NO Q/A, No STANDARDS.... Why would be shoot ourselves in the foot and prevent $$$ flowing threw the door... Thats just stupid.... take advantage of the customer is our motto... Stupid Customers! Do you believe these dumbass's just listened to me and I got 2x commission and a bonus. If I do it three times this month.. I GET A TRIP TO HAWAII... ohh yeah...

Damn cracking my self up now...
 
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Bobby V

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Yep, its so simple, it almost cost BHC Vic a boat load....
Its that simple to mess up someones future.... that should scare everyone...

He got lucky, but the people buying houses in 2002-2007 didnt get lucky did they...

Thats how simple it is to screw over someones financial future, maybe a marriage or a job... or worse..., all because they trusted the Broker...

With no ramifications what so ever... Because its all about helping people live the american dream... ooooooo rrrrraaaaahhhhhh....

I want this thread to be the number one thread that pops up on google when people search Mortgage Brokers....
I want them to see where their loyaltys lie. Not with the customer, the bank that employ them.


LIke I said, keep giving me the ammo... Call me more names...

There are alot people firing away.

How many defend the Ethics of that Industry... ?????
The more they try, the deeper the hole gets...

Sometimes the Truth can be very scary.
Just curious. What do you do for a living...:)
 

Xring01

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Just curious. What do you do for a living...:)
Me, I am a Pimp....
Keep my bitch slapping hand, locked and loaded at all times.

If you truly want to know... do some searching on my posts... you will figure it out...
 

Xring01

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there is also a loop hole in vacant land loans..which I do,..I have a new home that coming up for sale that I would like to carry the paper on.... but dodd frank has me scared...so pretty much has to be a vacation home for some one...LOL.... there it is ...

Is that a loophole?
Why yes it is... hummmm...

I wonder if this Xring guy might be on to something on this thread.
 

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I’ve told them no, but grandma and grandpa want to pay for everything sports related. My parents really want to help my brother and I be set for the future. Paid off houses is a good start. But again I appreciate everyone’s input I’m seeing things from lots of different angles now which is exactly what I wanted
Whoa hold on here! As long as it's not a burden to you, your wife, and children, let the grandparents be grandparents and enjoy the time with the grandchildren. So many fun memories and experiences as a kid came from my grandparents and have set a path for me and my family to follow. It truly was fun doing these things and being a kid at the same time. My parents were fine financially but it was something the grandparents wanted to do to see us happy, spend time with us, and do these things together before age and death set in. Fun memories for me. Great life experiences for them.
 
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jeepdog

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I'm not going to give you a loan, you might lose your job in the future...lol or maybe smoke crack...lol ...points=up front costs ..interest rate... how long....next
 

Xring01

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I'm not going to give you a loan, you might lose your job in the future...lol or maybe smoke crack...lol ...points=up front costs ..interest rate... how long....next

Please defend the Ethics of the Industry....
I am all ears...
Prove me wrong..
Show me the high standards,
How many Mort Pro get fired / month / year for not living up to the high standards of the industry?

From my experience, there is only one reason they get fired. Thats not hitting the #'s... loans/month... I am obviously way off base... Please educate me.

Or maybe you can come up with more excuses...
Hopefully better than the others...those where pretty good, But I bet you have better ones.
 

jeepdog

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Did it not start with the Clinton bullshit everybody in the ghetto gets a loan...no income verification and drive by appraisal...all the people I knew that lost their ass knew exactly what was up, very sad for the people that didn't
 
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JD D05

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I got approved for a home I had no business owning when I was 23 years old. I lived there for 14 years and made a lot of money. I was absolutely shocked they approved me, but I wanted it and worked harder to keep it.

I am sure it has been asked @BHC Vic what % of interest are you writing off from the mortgage? Have you considered investing that 1000 per month?
 

BHC Vic

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I got approved for a home I had no business owning when I was 23 years old. I lived there for 14 years and made a lot of money. I was absolutely shocked they approved me, but I wanted it and worked harder to keep it.

I am sure it has been asked @BHC Vic what % of interest are you writing off from the mortgage? Have you considered investing that 1000 per month?
Yes but I don’t know how. I know I can sit with a professional and get a plan together. I just thought paying off my house as fast as possible was a very safe bet. I still feel that way but I like some things I’m hearing and I’m going to check out my options. Regardless of what i do with the mortgage there’s extra money that can be invested. I’ve been considering a duplex or maybe a small complex. I dunno I’m just asking questions and getting ideas right now. I feel lucky as shit I’m even at a point where these conversations are happening now.
 

JD D05

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Yes but I don’t know how. I know I can sit with a professional and get a plan together. I just thought paying off my house as fast as possible was a very safe bet. I still feel that way but I like some things I’m hearing and I’m going to check out my options. Regardless of what i do with the mortgage there’s extra money that can be invested. I’ve been considering a duplex or maybe a small complex. I dunno I’m just asking questions and getting ideas right now. I feel lucky as shit I’m even at a point where these conversations are happening now.

Lot's of good ways to invest. I have a very honest fair guy that I could suggest. Good thing about investing something like 1000 a month is dollar cost averaging.
 

Xring01

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Lot's of good ways to invest. I have a very honest fair guy that I could suggest. Good thing about investing something like 1000 a month is dollar cost averaging.

Supporting info on JD's statement.
Many years ago... About 21 years.. When my son was born.
I bought a Variable Universal Life Insurance Policy. (VUL)
The VA paid me $125/month which is deposited into my account every month.
On the 5th of the month the VUL is direct deposited $120/month. So the VA has paid for my VUL for the last 21 years.....

Of which about $35/month pays for $250K life insurance policy on me, and the rest was invested in %50 Small Cap Mutual Fund & %50 S&P 500 fund.

Today, the dollar cost averageing / compound interest... Its worth $58,000..... Last year or two, its gone up alot...

Not bad for $80ish /month for 21 years.
Rough math is $20,160 of my contributions which equals $37,840 ROI of investments and compounding interest...

Yes I have alot of other investments.. It was something I did when I got out of the military, and I am glad I did...

The thing I am trying to show, is just how effective compound interest adds up, over 20 years.

Ohhhh clarification... there are better ways today to do this than a VUL policy. Its has it functions, but its probably outdated in todays world. 20 years ago, we didnt have ETF's and all the stuff that we have today.
 
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DRYHEAT

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Yes but I don’t know how. I know I can sit with a professional and get a plan together. I just thought paying off my house as fast as possible was a very safe bet. I still feel that way but I like some things I’m hearing and I’m going to check out my options. Regardless of what i do with the mortgage there’s extra money that can be invested. I’ve been considering a duplex or maybe a small complex. I dunno I’m just asking questions and getting ideas right now. I feel lucky as shit I’m even at a point where these conversations are happening now.
Paying off your house is the safest bet, maybe not the most profitable but you can still live in your paid off house, good luck living in a devalued stock portfolio when the market tanks.

there is nothing wrong with doing both, I would like to see you pay your house off sooner and invest at the same time however in my opinion make the house your priority.
 

JD D05

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Supporting info on JD's statement.
Many years ago... About 21 years.. When my son was born.
I bought a Variable Universal Life Insurance Policy. (VUL)
The VA paid me $125/month which is deposited into my account every month.
On the 5th of the month the VUL is direct deposited $120/month.

Of which about $35/month pays for $250K life insurance policy on me, and the rest was invested in %50 Small Cap Mutual Fund & %50 S&P 500 fund.

Today, the dollar cost averageing / compound interest... Its worth $58,000..... Last year or two, its gone up alot...

Not bad for $80ish /month for 21 years.
Rough math is $20,160 of my contributions which equals $37,840 ROI of investments and compounding interest...

Yes I have alot of other investments.. It was something I did when I got out of the military, and I am glad I did...

The thing I am trying to show, is just how effective compound interest adds up, over 20 years.

Albert Einstein famously said that compound interest is the most powerful force in the universe. He said, “Compound interest is the 8th wonder of the world. He who understands it, earns it; he who doesn’t, pays it.”
 

Xring01

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Paying off your house is the safest bet, maybe not the most profitable but you can still live in your paid off house, good luck living in a devalued stock portfolio when the market tanks.

there is nothing wrong with doing both, I would like to see you pay your house off sooner and invest at the same time however in my opinion make the house your priority.

There is nothing to argue with Dryheats position.
Why because everyone has different priority's, and outlook on the future. He is making the right decisions for himself and his family. I am more of pay down the mortgage and invest kind of guy, but I got screwed when my house lost 50% of its value during the 2007 housing meltdown. So I see things a bit differently.

The fucker who built the crystal ball I bought should be shot... because it didn't work with a shit. (Orange I was joking on that statement, dont take it literal).

There is not only one way to plan for the future. There are many ways....

The best part of this, BHC Vic, you are looking for information that helps you make better decisions... That makes you a smarter than the average person... Dont get a big head on me now... (again just joking)....

It all comes down to risk tolerance, and market forecasts. Only you can answer the amount of risk you want to take, no one has a crystal ball that works.

My advice... what I have done in the past to help me make complex financial decisions
Create a spreadsheet.... thats shows the options that you are considering based on the best data you can forecast....

Run those numbers for 20 years into the future... You will be surprised at what you find.

You will be more surprised at the questions you start asking yourself, and your wife/partner. Thats when the true win happens...

Because a couple that plans there future together, will most likely stay together.

Typically those that dont plan a future together, typically are not together... that can cost you half.

BHC Vic , Honestly, great job, keep asking questions, dont ever believe one asshole on the internet or in an office. Do all the research, put plan in place, be ready to walk away if the numbers dont add up....
 

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to try and get this back on topic....... with a pretty good chance of major inflation coming in the next 5-10 years... does it make better sense to lock in a low rate at 30yrs? Sort of like when you talk to that old timer, that bought there house x amount of years ago, and the mortgage was $700 a month? In todays money, $700 seems like nothing for a mortgage...... but back then, $700 was a good chunk of money.

So do you take 30yr money now, riding on the chance that the mortgage payment will be irrelevant once inflation really takes off? (obviously if you can afford to do it)


The old school, simple financial side of me says debt is bad, and pay as minimal interest as you can over your life. my 15yr rate currently is 2.75% and I maybe have 11-12 years left. My goal was to have the house paid off by the time my first daughter graduates high school.... and I'm on track. There is something about a paid for primary home that seems comforting. Then there are people on the other side of the fence that say no way, tap into that equity... it's there, use it to make more money, leverage etc etc.

For people who are more well versed on inflation, and how to benefit from periods of inflation....... would you say it is better to take out cheap 30yr money and bet on inflation? Or stick to the simple man approach of pay it off asap?
 

Xring01

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to try and get this back on topic....... with a pretty good chance of major inflation coming in the next 5-10 years... does it make better sense to lock in a low rate at 30yrs? Sort of like when you talk to that old timer, that bought there house x amount of years ago, and the mortgage was $700 a month? In todays money, $700 seems like nothing for a mortgage...... but back then, $700 was a good chunk of money.

So do you take 30yr money now, riding on the chance that the mortgage payment will be irrelevant once inflation really takes off? (obviously if you can afford to do it)


The old school, simple financial side of me says debt is bad, and pay as minimal interest as you can over your life. my 15yr rate currently is 2.75% and I maybe have 11-12 years left. My goal was to have the house paid off by the time my first daughter graduates high school.... and I'm on track. There is something about a paid for primary home that seems comforting. Then there are people on the other side of the fence that say no way, tap into that equity... it's there, use it to make more money, leverage etc etc.

For people who are more well versed on inflation, and how to benefit from periods of inflation....... would you say it is better to take out cheap 30yr money and bet on inflation? Or stick to the simple man approach of pay it off asap?
Empire,
I have never had an adjustable rate mortgage... not worth the risk... IN MY OPINION....

Back to your question...
Where to put extra funds????? Mortgage or Investing.... If your crystal ball is better than mine... then you tell me.
If not, then you are like the rest of us fools with opinions of whats going to happen in the future.

I am a firm believer that inflation will hit the US hard in the next 4-8 years. I put the reasons why in one of the posts in this thread....

Housing Market will go up and Down
Stock Market will go up and down...

When housing market has a major down turn, its very difficult to sell that asset. It takes time.
When the Stock market starts to go down... I can shift all my investments from my phone within a few seconds... Yes, I am classified as a Pattern Day Trader... Look it up and you will get a better idea...

Back to how much risk you are willing to take, versus the saving you have to get you thru on hard times, versus future problems the world will throw at you...

Which is a key reason I am not a person who has all there eggs in one baskets...

My house is my real estate investment, My 401K, VUL, Day Trading accounts are my Stock Market investments. My business is another huge investment that should pay for my retirement without the prior two. But, as I have admitted, my crystal ball is broken. Which is why I am spread out over 3 different avenues to create wealth.

Assuming 1 maybe 2 of the 3 dont work out as I forecasted, hopefully over the 3, I get to where I planned for....

Saying all the above... I have tried to buy Rental propertys, it is a great path to wealth, but SoCal the ROI/ #'s do not add up right now. I have made the decision its not worth the risk (AT THIS TIME), so I added more to my Stock Market accounts, waiting for a down turn in real estate. Pull the money out of cash stock accounts to buy rental property's in the future. Hopefully...
 
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EmpirE231

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Empire,
I have never had an adjustable rate mortgage... not worth the risk... IN MY OPINION....

Back to your question...
Where to put extra funds????? Mortgage or Investing.... If your crystal ball is better than mine... then you tell me.
If not, then you are like the rest of us fools with opinions of whats going to happen in the future.

I am a firm believer that inflation will hit the US hard in the next 4-8 years. I put the reasons why in one of the posts in this thread....

Housing Market will go up and Down
Stock Market will go up and down...

When housing market has a major down turn, its very difficult to sell that asset. It takes time.
When the Stock market starts to go down... I can shift all my investments from my phone within a few seconds... Yes, I am classified as a Pattern Day Trader... Look it up and you will get a better idea...

Back to how much risk you are willing to take, versus the saving you have to get you thru on hard times, versus future problems the world will throw at you...

Which is a key reason I am not a person who has all there eggs in one baskets...

My house is my real estate investment, My 401K, VUL, Day Trading accounts are my Stock Market investments. My business is another huge investment that should pay for my retirement without the prior two. But, as I have admitted, my crystal ball is broken. Which is why I am spread out over 3 different avenues to create wealth.

Assuming 1 maybe 2 of the 3 dont work out as I forecasted, hopefully over the 3, I get to where I planned for....

Saying all the above... I have tried to get buy Rental propertys, it is a great path to wealth, but SoCal the ROI/ #'s do not add up right now. I have made the decision its not worth the risk (AT THIS TIME), so I added more to my Stock Market accounts, waiting for a down turn in real estate. Pull the money out of cash stock accounts to buy rental property's in the future. Hopefully...

My rate is fixed at 2.75... not an ARM.

But as you said, you believe inflation will hit. I also believe inflation will hit. and everything I have ever read about hyperinflation says it is best to load up on debt before it hits. Now I'm not into loading up on debt.... but the argument for inflation is you take the long term cheap money now... because say a 2,500 dollar payment today is significant on average.... but after several years of inflation, that 2500 number is equal to 3500... so at that point, your 2500 dollar payment becomes less significant.

IDK... this inflation stuff is above my pay grade. I will most likely stick to the OG plan of just paying it off. But in the 80's...... houses were around 50-60k in my area......now that won't even cover 20% down. So if the same thing repeats... everything in todays dollars will seem like a bargain in the next 10 or so years.
 

sintax

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My opinion. If you can afford the 15 year, don't refinance. Just be disciplined and send the extra $1,000 per month at the existing mortgage as additional principal paydowns.

This way you save the costs and trouble of refinancing. And if the budget ever gets tight, you are not obligated to the extra $1000 per month.

Your instincts to payoff the mortgage and be debt free on your primary residence is extremely solid.....Good strategy and the best way to accumulate wealth over the long run

thats my exact thoughts, and i've been doing the same. I left my 30yr (now a 20 yr) in place and have just been making extra principal payments. Around Christmas or summer I dial them back a bit to have more money for other items
 

zhandfull

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Have mixed feeling with mortgage brokers and loan servicers. They do provide a valuable service while shopping for a mortgage and/or refinancing. You just have to be careful and know the potential risk.

I have a fair amount of equity in my current home and receive offers in the mail and calls nearly everyday to refinance and/or cash out, even from my own lender but already have a great rate.

The first house I bought was in 1990 located in the high desert and it lost about 35% of it's value in the first couple years. Meanwhile interest rates continued to fall and I was locked into a 9.5% rate. Almost 15 years later there was just enough equity to refinance at a lower rate. The take away from this story is not a single broker or lender is going to be able to help you in this situation unless they foreclose on you. Same thing happened to those that bought just prior to the 2007 recession. Some that held on and continued to make the payments while their houses were upside down are just now barely able to refinance at a better rate.

Timing is everything. And as long as home prices keep rising and/or you pay down some equity over a few years, you will always be a prime target to refinance and/or cash out for the mortgage brokers. But when the rates rise and/or home values fall and history says one or the other will happen again probably sooner than later. You had better not be over leveraged!
 

the510

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just closed on a new 30 year fixed. 3.3% going with the biweekly options. turns the 30 years into 26, and save a butt load of $$$$$$ on interest.
 

Royally PO'd

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The bullshit the dems came up with " Everyone deserves to own a home " should have been the demise of the party, and anyone that swallows their garbage needs to take a permanent dirt nap.. Building spec homes , I saw the building bubble in 2000.
 

mash on it

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The bullshit the dems came up with " Everyone deserves to own a home " should have been the demise of the party, and anyone that swallows their garbage needs to take a permanent dirt nap.. Building spec homes , I saw the building bubble in 2000.

And a Democratic senator from Illinois cast the deciding vote, back in 1996 (or 1997)

He also won the 2008 presidential election.

The irony.

Dan'l
 

Carlson-jet

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The turd was not elected until 2004 with the help of David Axelrod.
The stuff I said about him on another board I should have been banned for when he ran for senator. When he ran for the oval office I doubled down. The rest is history
 

grumpy88

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I don't feel the mortgage business is transparent and I 100 percent believe I need to educate myself on what I'm signing . In the future I will definitely shop a minimum of 3 loan offers .
 
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TPC

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I've done 15 years twice and glad I did.
First one when I cashed out the marriage to the split tongue Viper I had a healthy chunk of $$ for a big down on the current house.
We recently paid off the 15 year on the current house just about 5 years early I think.
15 Year Mortgages used to be at a slightly lower rate and you really build equity sooner in the final stretch.

What price contentment to not have a mortgage?
Now if the Z06 C8 looks good,,,,
 
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