|
Slow Motion posted:3. Pay down mortgage to a more manageable monthly level (Current APR 4.25%). A refinance this year might help a lot. Are you paying PMI since you're over 75% LTV. Current 30 year rates (at aimloan.com with great credit and escrow) are 3.25% with 0 closing costs, or 2.875% with $8k costs. Refinancing from 4.25 is doable though it may not have a huge ROI. 75% of 580k is 435k. You can only get $417k unless you do a jumbo loan which would increase your APR by 1/4 or 1/2 point. So that's 72k or better yet 90k to go. Paying off a realistic additional $2k/month means 36 or 45 months. This does not take into account equity paid off with your normal loan payments, so it would take less time than that. It's not a simple call. 4.25% is a decent rate by most standards. You want to stop paying PMI. You could either put your $2k/month straight into additional loan payments, or into a rainy day account. 3 years from now you refinance, give them the money you've saved, and then you have a $417k loan at 3% ($1758/month) and no PMI. That would be the best long term solution IMO, but plans and interest rates change.
|
#
¿
Mar 27, 2020 23:39
|
|
|
|
| # ¿ May 15, 2024 13:42 |
|
|
I keep my checking account with a cushion of a month or two expenses above the minimum balance. I use etrade, because I've had the account forever and there's few fees. It can take 2-3 days to transfer money to/from checking unless you wire it, which costs a minimal amount. Additional cash I transfer to etrade and into VYM (medium term) or MINT (short term cash that still earns more than a 0.01% checking account interest). Longer term (i.e. stash and forget about it), VTSAX is fine. Maybe an additional 6 months expenses in VYM/MINT and the rest start shoveling into VTSAX.
|
|
#
¿
May 29, 2020 07:13
|
|