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Medullah posted:How crazy would it be to refinance my mortgage 10 months into buying the house? I was a bit tentative about being able to make the payments I'd need to in order to do a 20 year so I did a 30 year I'm easily able to make them (been making the 30 year payment plus extra principal to match what the 20 would have been), so I'm wondering if the long term gains of dropping down to a 20 would outweigh the short term cost of refinancing. Get some offers on it, figure out what your savings on the rate plus the transaction costs would be versus just making the payments as if it were a 20-year mortgage, and if that amount is worth losing the flexibility of being able to fall back to normal payments if you want to.
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Aug 8, 2019 18:42
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Medullah posted:How crazy would it be to refinance my mortgage 10 months into buying the house? I was a bit tentative about being able to make the payments I'd need to in order to do a 20 year so I did a 30 year I'm easily able to make them (been making the 30 year payment plus extra principal to match what the 20 would have been), so I'm wondering if the long term gains of dropping down to a 20 would outweigh the short term cost of refinancing.
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Aug 8, 2019 18:55
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Unless you are planning to live in the house for the length of the mortgage or longer then paying it off early is not generally suggested unless your interest rate is really bad (then refinance) or you are very debt averse with all of your other investment vehicles maxed (401k, Roth, etc.). Having a paid off mortgage just means that you have more of your net worth tied up in your house which is a very risky "investment" and much harder to liquidate if that money is ever needed for something else. Just my 2 cents.
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Aug 8, 2019 20:09
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What is the amount you owe, what is the current interest rate, what is the new rate, how much are the refinancing fees. Also keep in mind that a longer term doesn’t prevent an early payoff but a shorter term does limit your flexibility. My guess is it’s probably a wash overall.
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Aug 8, 2019 20:23
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All good points. Thanks, I'll do some number crunching.
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Aug 8, 2019 20:39
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Did we all just agree to ignore the guy who has a $150/month candy budget and negative (??) fuel budget or what
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Aug 8, 2019 23:25
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I'm guessing candy is code for weed or similar
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Aug 8, 2019 23:34
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What's the best place to park some money that I want to use for a mortgage down payment in 18 to 24 months? I have 30k that I want to grow to at least 45k while setting back $1000 per month in that time frame. Should I use a Wealthfront savings account? Or should I go with a CD since I know I won't need the money?
Kibbles n Shits fucked around with this message at 19:26 on Aug 9, 2019 |
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Aug 9, 2019 19:21
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Kibbles n Shits posted:What's the best place to park some money that I want to use for a mortgage down payment in 18 to 24 months? I have 30k that I want to grow to at least 45k while setting back $1000 per month in that time frame. Should I use a Wealthfront savings account? Or should I go with a CD since I know I won't need the money? CD or high yield savings. If that won't get you to where you need to go, then you'll need to save longer. Anything riskier is a bad idea for that short of a time frame. CD rates aren't all that great compared to HYSA, depending on where you go, so shop around before you commit. It might be worth the 0.25% drop in rate to keep it liquid, since you don't really know PRECISELY when you'll need it. edit: wait in 18 months you'll be at $48k by adding $1,000/mo, so what's the problem...? DaveSauce fucked around with this message at 19:41 on Aug 9, 2019 |
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Aug 9, 2019 19:38
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Kibbles n Shits posted:What's the best place to park some money that I want to use for a mortgage down payment in 18 to 24 months? I have 30k that I want to grow to at least 45k while setting back $1000 per month in that time frame. Should I use a Wealthfront savings account? Or should I go with a CD since I know I won't need the money? High yield savings account or a CD is your best bet in that short of a time frame. e;fb
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Aug 9, 2019 19:41
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Kibbles n Shits posted:What's the best place to park some money that I want to use for a mortgage down payment in 18 to 24 months? I have 30k that I want to grow to at least 45k while setting back $1000 per month in that time frame. Should I use a Wealthfront savings account? Or should I go with a CD since I know I won't need the money? The yield you'll get off a CD is unlikely to beat an account with Ally or another high-yield savings.
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Aug 9, 2019 19:49
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DaveSauce posted:CD or high yield savings. If that won't get you to where you need to go, then you'll need to save longer. Anything riskier is a bad idea for that short of a time frame. Who said there was a problem? I just need a better place to park this money than checking while I save a bit more, and I couldn't decide what was the best option. Sounds like HYSA is the best way to go.
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Aug 9, 2019 20:59
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Kibbles n Shits posted:Who said there was a problem? I just need a better place to park this money than checking while I save a bit more, and I couldn't decide what was the best option. Sounds like HYSA is the best way to go. Nobody, but your post implied that you needed some where to stash the money where it will grow. But your plan will put you well past your goal, so safety and liquidity are going to be higher priorities than growth.
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Aug 9, 2019 21:05
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Thanatosian posted:The yield you'll get off a CD is unlikely to beat an account with Ally or another high-yield savings. High yield savings is likely the best answer, worth mentioning rates like Ally can change more suddenly. Ally rate went from 2.1 to 2.0, just went to 1.9. It’s whatever, but if you can lock in 2.0ish with a CD that’s not a bad idea then.
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Aug 10, 2019 13:34
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Thanatosian posted:The yield you'll get off a CD is unlikely to beat an account with Ally or another high-yield savings. Synchrony bank CDs have consistently beat Ally HYSA rates for me, but only by a few fractions of a percent. I use them mostly for emergency fund storage and rotate a lot of separate CDs so they come due every few months, so the liquidity loss is less of an issue for me.
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Aug 10, 2019 13:38
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Thanatosian posted:What are the nature of your loans? And what is the difference between "home" and "house?" The loans are House loan: $500 a month Credit card: $200 a month The rest are higher interest loans I'm working off as quickly as possible I mortgage off about $400 a month, 33% of the interest paid is tax delectable Home is like a microwave, light bulbs, furniture. House is structural stuff like renovating the balcony or a digger to tear up a piece of lawn to expand the parking area EAT FASTER!!!!!! posted:Tag yourself I'm $156 to candy, $156 to dentist. Help me my family is dying. the $156 candy is mostly stuff like "mate comes over and we buy some sodas, chips, 2 pizzas and spend an evening playing videogames" That's easily $50 in an evening. DJCobol posted:How are you spending a negative amount on fuel? Is there some kind of "It's Always Sunny in Philadelphia" fuel scam going on where you buy barrels of fuel and resell it later at a profit? I run a small business and I can pay myself 18 cents per kilometre I travel while doing work tax free. So I take the months fuel expenses and then deduct how much I paid myself in travel expenses. If I just put in fuel expenses then my private economy would have been burdened by business travel. Not to imply that I drive at a profit. technically I should add together repair costs + fuel expenses and then deduct the travel compensation but that would only be accurate on a yearly time frame. The funny part is I have a house worth $180,000 with a loan of $100,000 on it but I can't do anything with my house loans at all because I run a business. As far as my bank is concerned my business profits needs to match my former income as an employee for 3 years before they count my business as a stable income as basis for renegotiating my loans. But because it's a business I make the most out of keeping profits down. My first year running a business was kind of meh, the second year was great. The third year was meh and so the counter reset again so maybe I can renegotiate my loans again in 2024. Last time I did it was 2014 If I quit my business and got a regular job my income would be stable at about $2950 a month after taxes and I could probably take a loan on my house and cancel out all the other loans and bring my monthly loan costs to about $550 Katt fucked around with this message at 14:13 on Aug 10, 2019 |
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Aug 10, 2019 14:01
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Make thread
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Aug 10, 2019 19:31
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Katt posted:
Hadlock posted:I'm guessing candy is code for weed or similar
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Aug 10, 2019 19:47
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Katt posted:33% of the interest paid is tax delectable 
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Aug 10, 2019 20:09
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Trap sprung, plutocrat spotted
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Aug 10, 2019 20:14
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I just turned down a solar roof install today for the following reasons: 1) The PACE loan backing it was through Renew Financial, who's under a number of suits + a class action for being poo poo. Also allegations that they kick-back to contractors giving them business leading to... well, not like anyone remembers 2008 anyway. 2) They didn't try to qualify me for a county-level program which may have had better rates. 3) Their gimmick was a premium price for a 25-year production guarantee, full roof warranty forever, etc. No idea if they had insurance or a bond backing that, just their company. 4) The premium for that was paying 40k for a 10kw system that you can get from 25-30k. 5) I've already got enough non-refundable credits to zero my tax bill so I can't do anything with the 30% that expires this year except roll it over and see if anything changes in the future. Means I'm in no rush to get it done by December so I can take my time. 6) ... when installs drop off next year I expect to see companies start to get hungry for business and willing to lower prices significantly. Anyway, thread question: When does it make financial sense to convert variable power bills into a fixed loan? Is there a rule of thumb for how much it should be saving per year to account for future maintenance costs?
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Aug 26, 2019 13:46
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Harik posted:I just turned down a solar roof install today for the following reasons: I cannot answer your question, but want to make sure that you include in your calculus the variability of the paid rate by the Utility. None of it is guaranteed and you are at the whim of one rate case going against you to completely upend your financial model. For instance, my company (Midwest Electric provider) just slashed the rate we pay to sell back to us primarily because the previous rate was disgustingly generous and unsustainable.
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Aug 26, 2019 13:53
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TraderStav posted:I cannot answer your question, but want to make sure that you include in your calculus the variability of the paid rate by the Utility. None of it is guaranteed and you are at the whim of one rate case going against you to completely upend your financial model. For instance, my company (Midwest Electric provider) just slashed the rate we pay to sell back to us primarily because the previous rate was disgustingly generous and unsustainable. We are still net metered here but of course they're always railing against that. That's a good point to keep in mind - I know how much energy I use each month but not the minute-by-minute breakdown. If net-metering goes away that suddenly becomes an important consideration. Thank you, I'll see if I can monitor that. At least measuring AC amps doesn't require any kind of electrical modification, just clip a ring meter around the mains and log it.
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Aug 26, 2019 15:24
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Harik posted:We are still net metered here but of course they're always railing against that. That's a good point to keep in mind - I know how much energy I use each month but not the minute-by-minute breakdown. If net-metering goes away that suddenly becomes an important consideration. Just to be clear, I was referring to the future possibility of variability in the legislated rate that the utility pays, not the minute-by-minute usage. Meaning that you assume $.xx/kWH payback in your economic model that could become $.yy/kWH very quickly in a future rate case that could make the payback period for your investment kick out very far.
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Aug 26, 2019 15:29
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Harik posted:When does it make financial sense to convert variable power bills into a fixed loan? Is there a rule of thumb for how much it should be saving per year to account for future maintenance costs? I've looked at it before and I came to the conclusion that if I paid an average rate of ~15-20 cents/kwh it could be worth it. If we came up with some magical new battery technology (e.g. doubling the affordability/capacity/physical size of existing options like a powerwall 2) so my house could truly be off the grid, I would consider it regardless of supply cost - but right now it's not practical to achieve that anyway.
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Aug 26, 2019 15:34
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TraderStav posted:I cannot answer your question, but want to make sure that you include in your calculus the variability of the paid rate by the Utility. None of it is guaranteed and you are at the whim of one rate case going against you to completely upend your financial model. For instance, my company (Midwest Electric provider) just slashed the rate we pay to sell back to us primarily because the previous rate was disgustingly generous and unsustainable. This is very good advice. Net metering will have to go at some point. If penetration gets high enough people who don't have solar (poor, renters, etc) will be grossly subsidizing the rich (they already are). When you can do utility scale solar for 1/3 the cost as rooftop it makes no sense in the long run.
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Aug 26, 2019 15:56
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TraderStav posted:Just to be clear, I was referring to the future possibility of variability in the legislated rate that the utility pays, not the minute-by-minute usage. Meaning that you assume $.xx/kWH payback in your economic model that could become $.yy/kWH very quickly in a future rate case that could make the payback period for your investment kick out very far. That means to get an idea of how much net metering matters you need to know how your usage corresponds to your production on a minute-by-minute basis because they sure as hell aren't averaging it out over a day. When net metering goes away the utilities try to get wholesale buy rates from you instead, so you give them power in the afternoon for a fraction of the retail cost they sell it back to you for in the evening.
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Aug 26, 2019 16:52
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Exactly, only a meter of time because the economics don't make sense at scale. Unless the various PUCs keep pushing against it.
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Aug 26, 2019 18:01
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My company got acquired last December. They gave everyone a modest pile of RSUs as a retention thing, and the first quarter of that vests in December (followed by 1/16th every three months thereafter). At the time, it was a "yeah I'll stick around until December and get a nice Christmas bonus" but the stock price has gone up 150% since then so now we're all wearing some real nice golden handcuffs. I have no idea what to do with this kind of sudden windfall. I've been getting more serious about buying a house lately, I can definitely buy a nicer house with that cash, or I can pay off some loans, or I can maybe just throw it at some investments, or I could throw one hell of a cocaine party, and I have no loving idea Here's what I'm sitting on right now-  I'm not maxing out my ESPP even though I should be (purchase price locked in at $83 for the next two years, stock currently at $150+), but the hit to my takehome pay is really loving hard to bear. I'm currently putting 10% into my 401k even though my employer only matches to 8%, so maybe there's some value in moving that 2%? But what do I do with this loving obscene bonus? I'm looking to buy a house in the 130-180k range, so I could just throw a big fuckin pile of money at a down payment, but that seems silly. Paying off my higher interest loans seems maybe prudent, but my payment is small enough that I'm not sure that's even worth it, either. e: that 60k is pre-tax, so closer to 43 after-tax, probably (but our stock jumped 15 loving percent after an earnings call this week so who even knows)
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Sep 7, 2019 04:18
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Sockser posted:My company got acquired last December. They gave everyone a modest pile of RSUs as a retention thing, and the first quarter of that vests in December (followed by 1/16th every three months thereafter). At the time, it was a "yeah I'll stick around until December and get a nice Christmas bonus" but the stock price has gone up 150% since then so now we're all wearing some real nice golden handcuffs. Cocaine party.
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Sep 7, 2019 04:39
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I would pay off student loan #3, on the basis of its interest rate. Possibly #s 4 and 5 as well. Housing-wise I think the conventional wisdom is you should put 20% down to get a good rate, with any more than that not making much difference. But you can (and should) talk with a loan agent or two to see what your options are. What are your options for index funds? Can you get your money into Vanguard? Generally speaking if you have money that you have no immediate (next ~5 years) plans for, sticking it into an index fund with a low expense ratio is a good idea. The expense ratio is how much of your investment goes to paying the fund manager to manage the fund, and ideally it's something like .2% or lower.
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Sep 7, 2019 04:57
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Sockser posted:My company got acquired last December. They gave everyone a modest pile of RSUs as a retention thing, and the first quarter of that vests in December (followed by 1/16th every three months thereafter). At the time, it was a "yeah I'll stick around until December and get a nice Christmas bonus" but the stock price has gone up 150% since then so now we're all wearing some real nice golden handcuffs.
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Sep 7, 2019 12:41
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interest rates be damned, just wipe out all the debt, including the car. it's only like a quarter of that windfall and that will be that many less things a month to worry about. I think that's absolutely worth it even if you're missing out on some potential investment gains. you'll still have a huge stack of cash afterwards to do whatever with anyway. 100 HOGS AGREE fucked around with this message at 13:44 on Sep 7, 2019 |
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Sep 7, 2019 13:41
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I recently sold my house and have about 100k that I would really like to use to pay down a 155k student loan at 6.8% interest. I am having no trouble making the current payments but I’m changing jobs at the end of the year (slightly less income but closer to home and less stress) and education expenses for my kids will be going up in July 2020. Would it be best to spend the money now and pay down the loan (should get it to payoff stage in May 2021) or would it be better to put the money in a CD, see how things go with the upcoming situation changes? I do have an emergency fund which should cover anything coming up in that time frame but I used to be dirt poor and spending that much money on debt payoff scares me.
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Sep 7, 2019 15:34
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Nodelphi posted:Would it be best to spend the money now and pay down the loan (should get it to payoff stage in May 2021) or would it be better to put the money in a CD, see how things go with the upcoming situation changes? I would just pay the loan down right away. Maybe only use 80 or 90k and add the rest to your emergency fund if you are worried about upcoming expenses
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Sep 7, 2019 15:43
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Nodelphi posted:I recently sold my house and have about 100k that I would really like to use to pay down a 155k student loan at 6.8% interest. I am having no trouble making the current payments but I’m changing jobs at the end of the year (slightly less income but closer to home and less stress) and education expenses for my kids will be going up in July 2020. You should absolutely put a big chunk of that money towards your student loans. Setting it aside to make 1-2% max in a CD while you continue to pay almost 7% on your student loans is not a safe move, it's just a bad one. How much you should put towards your student loans depends on the health of your emergency fund. When you say it "should cover anything coming up" do you mean that you've got a couple grand in "oh poo poo" money, or that you can cover a few months of living expenses if your income drops to zero?
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Sep 7, 2019 15:48
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Droo posted:I would just pay the loan down right away. Maybe only use 80 or 90k and add the rest to your emergency fund if you are worried about upcoming expenses This is what I recommend as well.
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Sep 7, 2019 16:04
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Space Gopher posted:You should absolutely put a big chunk of that money towards your student loans. Setting it aside to make 1-2% max in a CD while you continue to pay almost 7% on your student loans is not a safe move, it's just a bad one. The latter. I have savings for about 4-6mo of expenses if my income drops to zero. Ok I guess I know what I have to do despite that redneck whispering in my ear that I can’t eat paid down debt.
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Sep 7, 2019 16:07
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Nodelphi posted:The latter. I have savings for about 4-6mo of expenses if my income drops to zero. The redneck whispering in your ear is absolutely right, believe it or not. It'd be a bad idea to put 100% of the money towards paying off your debt if you didn't have a healthy emergency fund. But you do. If you run into trouble you and your family can eat rice and beans out of that emergency fund. Go kill off a big chunk of your debt.
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Sep 7, 2019 16:50
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So my wife is starting a job, and our goal is to save for five years to have a downpayment on another house / sell our existing house. What would be the best vehicle for this? I have an Amex HYSA (1.9%), but I figure if I'm going to have an amount approaching $100k there's maybe a better vehicle. Probably a CD or something that I can open at each 10k level and stagger them so they all mature at five years?
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Sep 7, 2019 17:05
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