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Our mortgage balance is just under $100k and our rate isn't too bad (3.375% - 15 year) and I'm still paying ~$280/mo in interest. Kinda pisses me off to think about it, but that is how interest works.
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Feb 3, 2017 17:01
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dreesemonkey posted:I'm career-stressing, if anyone feels like reading the following e/n: I did not end up getting the job, and I'm mostly ok with it. I do like my job, though the person who did get the job would have been my last choice just based on personality alone. Excellent at his job, but definitely not a leader/someone to lead by example. Of the 4 applicants, who combined have ~50 years of experience at our workplace, the selection process came down to 8 questions (scored on a 1-5 scale) and a 45 minute interview. Yay local government bureaucracy. e: To be fair, I did struggle with some of the interview questions (super vague), so I'm not super sour grapes guy. We all had to go through the same thing and I pretty much screwed the pooch. dreesemonkey fucked around with this message at 23:11 on Feb 4, 2017 |
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Feb 4, 2017 22:50
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dreesemonkey posted:Our mortgage balance is just under $100k and our rate isn't too bad (3.375% - 15 year) and I'm still paying ~$280/mo in interest. Kinda pisses me off to think about it, but that is how interest works. It could be three times that going to a landlord and not tax deductible, so
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Feb 4, 2017 23:36
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BEHOLD: MY CAPE posted:It could be three times that going to a landlord and not tax deductible, so No doubt, I just think about people with longer mortgages with higher rates (ours initially was 30 yr 5.575% ~8 years ago) and a higher mortgage balance and it makes me shudder to think what what they're "losing" every month. I can't wait to have my house paid off in ~8 years or whatever. Side note, this was the first year it was beneficial for us to itemize on our tax return, and that was due to paying a surprise ~$2700 medical bill from 2014 at the beginning of the year. Total distributions from our HSA this year were almost $4000, I guess that just put us over the top.
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Feb 5, 2017 00:20
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I work with mortgages and the worst home I saw was like a 600K property in NY that accrued $198 in interest i daily. A lot of our helocs have a daily interest accrual of $9-30, which adds up. If you have a daily simple interest loan and consistently make your payments like 8 days late you can end up never actually paying a cent towards you principal balance for loving years at a time.
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Feb 5, 2017 02:56
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dreesemonkey posted:No doubt, I just think about people with longer mortgages with higher rates (ours initially was 30 yr 5.575% ~8 years ago) and a higher mortgage balance and it makes me shudder to think what what they're "losing" every month. I can't wait to have my house paid off in ~8 years or whatever. Just because it's a particularly funny date range, if you had $100,000 8 years ago when you first got your mortgage at 5.575% you could have: 1. Paid the house in cash and not paid any interest 2. Taken your mortgage out anyway, paying about $42,000 in interest over 8 years so far while simultaneously investing in an S&P index fund and making about $208,000 total profits between dividends and capital gains If anyone has a problem with my numbers, I used this site so go yell at them instead: https://dqydj.com/sp-500-return-calculator/
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Feb 5, 2017 03:24
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My mortgage started in 2012 for $666.79 monthly with only $110 going to the principal and the rest going to taxes, interest, and insurance. Now's where I humblebrag that it's paid off, right? It's paid off. But the taxes & insurance still cost me $502 a month 
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Feb 6, 2017 14:24
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BloodBag posted:My mortgage started in 2012 for $666.79 monthly with only $110 going to the principal and the rest going to taxes, interest, and insurance. Now's where I humblebrag that it's paid off, right? It's paid off. But the taxes & insurance still cost me $502 a month Congrats! Can I ask about your decision to pay it off in 5 years instead of paying the monthly payment and investing the rest?
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Feb 6, 2017 16:28
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pig slut lisa posted:Congrats! Can I ask about your decision to pay it off in 5 years instead of paying the monthly payment and investing the rest? We got an inheritance from my late Father In Law and decided to just pay off the $62k principal. Did we do a dumb?
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Feb 6, 2017 17:40
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The idea is that you could gain 2-3% of expected arbitrage -- the difference between prices in separate markets. Example: you have a 100k loan with an interest rate of 0% that you pay over 30 years. At the end of 30 years, you will have paid $0 in interest. There also exists a wishing well where you can throw money into that spits it back out with a 5% annual coupon. If you got a 100k inheritance, what do you do with it? Pay off the loan or throw it in the wishing well? For reference, 100k compounded over 30 years at 5% is 432k -- a net gain of 332k. The non-idealized version of this is -- of course -- more complicated.
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Feb 6, 2017 17:48
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On the other hand, not having debt offers you a freedom and security that is hard to quantify.
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Feb 6, 2017 18:01
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While the thought of putting $62k into the market and watching it grow is nice, the reality of 100% of my home's value coming back to me (minus realtor stuff) in the event I sell it is nicer. Given that a house I bought in 2012 for $85k is now worth supposedly $160k+. (comparable to the identical house across the way that sold two years ago) The fact that it's truly *mine* is a really cool feeling.
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Feb 6, 2017 18:08
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BloodBag posted:While the thought of putting $62k into the market and watching it grow is nice, the reality of 100% of my home's value coming back to me (minus realtor stuff) in the event I sell it is nicer. Given that a house I bought in 2012 for $85k is now worth supposedly $160k+. (comparable to the identical house across the way that sold two years ago) The fact that it's truly *mine* is a really cool feeling. You missed out on one of the biggest bull market run ups in history which would have netted you approximately $50k on $63k invested in 2012, but that's hindsight. In general I think retiring a tax deductible mortgage at 3-4% is a low financial priority
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Feb 6, 2017 18:34
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BEHOLD: MY CAPE posted:You missed out on one of the biggest bull market run ups in history which would have netted you approximately $50k on $63k invested in 2012, but that's hindsight. In general I think retiring a tax deductible mortgage at 3-4% is a low financial priority I don't think the inheritance came in 2012, it seems like it's recent and BloodBag just paid off the mortgage. On the one hand, it's likely that investing that money would produce a higher return ~25 years from now, but on the other hand FrozenVent posted:not having debt offers you a freedom and security that is hard to quantify. Both financial choices are within the realm of reasonable, imo.
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Feb 6, 2017 23:35
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Debt is actually very precisely quantifiable lol, I have never really understood the debt allergy that gives people the feeling they are shackled by debt even if they have significantly more liquid assets than debt, even if it is cheap debt and there are substantial tax advantages to holding it.
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Feb 6, 2017 23:42
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Agreed. Low interest debt is the best. I spend maybe 5 minutes a month thinking about my debt. But I think people in medicine are sort of biased by high debt loads and high job security.
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Feb 6, 2017 23:50
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If I can pay off my mortgage within a week at a 95% probability (barring the market crashing like crazy), I personally don't consider it 'debt'. I consider paying off a 3% mortgage a similar allocation as a bond and do so accordingly to my asset allocation (accounting for minimum payments). This may or may not be the best strategy. Just makes the most sense to me.
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Feb 6, 2017 23:56
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Maybe I sucked at itemizing 1040's, but the mortgage interest/tax savings brought on by a mortgage that small didn't even come close to half of the standard deduction for married filing jointly. I was throwing ~$200/month at interest for nothing.
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Feb 7, 2017 13:11
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BloodBag posted:Maybe I sucked at itemizing 1040's, but the mortgage interest/tax savings brought on by a mortgage that small didn't even come close to half of the standard deduction for married filing jointly. I was throwing ~$200/month at interest for nothing. Cool $500 mortgage chat.
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Feb 7, 2017 13:57
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BloodBag posted:Maybe I sucked at itemizing 1040's, but the mortgage interest/tax savings brought on by a mortgage that small didn't even come close to half of the standard deduction for married filing jointly. I was throwing ~$200/month at interest for nothing. Yeah the deduction primarily helps upper middle class.
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Feb 7, 2017 18:06
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Rurutia posted:Yeah the deduction primarily helps upper middle class. Trump's website tax plan is to replace both the $12600 standard deduction and $4050 per person personal exemption with a new $30,000 standard deduction, while keeping rates basically the same for everyone who makes less than $500k/year (note: people over $500k would pay about $7500 less in tax per $100k over 500k). So for a REAL AMERICAN family of 5 who owns a house with a $200k mortgage at 4%, pays $3k in state income tax, $4k in property tax, and gives their church $4k they would go from a current deduction of $39250 down to $30000, effectively raising their taxes by about $2000 per year. On the other hand, for a couple of DINKs that live in Manhattan and rent an apartment, it increases their deduction by almost $10,000.
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Feb 7, 2017 18:26
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Vomit
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Feb 7, 2017 18:28
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Rent should be deductible if mortgage interest is - can we heal our nations cultural scar of 2-car garages on a plot of land to call our own? That would help working class people more than the mortgage interest one ever did. They can get their 2k/year back by not donating to their church. 
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Feb 7, 2017 18:36
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If Trump's tax plan is enacted, I guess I'll get like $2300 extra back per year while I'm renting, so I guess at least I have that to hold onto while the country crumbles.
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Feb 7, 2017 18:57
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Well he should loving get to it then rather than dicking around with his stupid ban and wall bullshit.
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Feb 7, 2017 19:25
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I'm kinda hoping he doesn't. All the brackets and standard deduction are cut in half for a single person and since my itemized deductions plus personal exemption are about $15k, it just hikes the tax on a few thousand of my income from 28% to 33%.
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Feb 7, 2017 19:29
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Ancillary Character posted:I'm kinda hoping he doesn't. All the brackets and standard deduction are cut in half for a single person and since my itemized deductions plus personal exemption are about $15k, it just hikes the tax on a few thousand of my income from 28% to 33%. But on the first 112,500 you go from paying $24,536 to $23,250. So you'd probably come out ahead by about a grand if by a few thousand you really mean just a few thousand - take $50 away from the surplus of $1,300 for each 1k over 112.5k. ...so yeah I guess I'd actually benefit from his tax plan by about $3500 a year net. Go cheeto I guess
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Feb 7, 2017 19:40
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Is there a good summary of the plan out there? I'm not familiar with the specifics.
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Feb 7, 2017 19:53
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Honestly just getting rid of the marriage penalty seals the deal for me. Most ridiculous thing in the tax code.
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Feb 7, 2017 19:54
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Here are some examples because I made a trump tax spreadsheet. All numbers are MFJ and essentially post-401k/IRA.code:
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Feb 7, 2017 20:16
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Guess I should try to make some more money.
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Feb 7, 2017 20:19
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So it's good if you don't have much stuff to deduct.......sounds good.
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Feb 7, 2017 20:27
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So much for the "renting is throwing your money away" narrative 
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Feb 7, 2017 20:48
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Good With Bad With Money: Hitting both your deductible and OOP max on your health insurance by the first week of February. 
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Feb 7, 2017 22:00
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Sundae posted:Good With Bad With Money: Hitting both your deductible and OOP max on your health insurance by the first week of February. Hey, I hope everything is okay and that it's not an aneurysm or if it's an aneurysm that they're able to get it coiled or stented with minimal drama and that whatever symptoms you were having to make them go looking go away too.
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Feb 7, 2017 22:23
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it turns out his good job was just a slow stroke. what a twist!
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Feb 7, 2017 22:31
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Nail Rat posted:But on the first 112,500 you go from paying $24,536 to $23,250. So you'd probably come out ahead by about a grand if by a few thousand you really mean just a few thousand - take $50 away from the surplus of $1,300 for each 1k over 112.5k. I'll have to re-check my math, I could've sworn that I would end up paying more. Maybe I calculated it based off the Congressional Republican plan that was also floated and had slightly higher tax rates.
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Feb 8, 2017 02:55
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Don't know if this is the right place to ask, but I was wondering if it's generally better to look for apartments with availability in a month or for immediate availability. I'll be moving to the northeast (let's say CT/MA/RI area) in the summer. I'll be able to look for apartments in mid-June, and I don't know if I'd have more options for July move-in or August move-in or if it even matters.
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Feb 12, 2017 19:05
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I would probably do July over August, just because you don't want to contend with the stragglers returning to school at the end of August who haven't found a place yet. I generally expect it to take more than one weekend to find a place and would say to be flexible. The more flexible you are with when you move in, the higher the chance is that you find a nice apartment that meets your criteria. If that means your lease overlaps by a week with your airbnb, so be it.
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Feb 12, 2017 19:08
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Thanks, I didn't think about competing students. Don't know if I'll be able to go look at apartments for multiple weekends considering I'm in the midwest right now, but maybe I'll go on one longer trip (4-5 days).
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Feb 12, 2017 19:27
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