Dave Ramsey

#76
#76
Who on here has the lowest mortgage interest rate? My wife and I refinanced a few months ago to 3.75%.
 
#80
#80
droski said:
if you are borrowing at 4.5% (hell lower than 4% if you consider the taxes), i see no reason to pay back the house. you'd do a lot better investing the difference.
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Here's my argument to that.

I'm going to buy another house eventually, probably in the next three years, if not sooner. I'm paying 3.875 now. No way in the world I'm going to get anywhere near that low again. I'm rather build as much equity as possible at the lower rate now to have when I buy the next house. That's why I'd prefer to pay it down.
 
#81
#81
tigervol9802 said:
Here's my argument to that.

I'm going to buy another house eventually, probably in the next three years, if not sooner. I'm paying 3.875 now. No way in the world I'm going to get anywhere near that low again. I'm rather build as much equity as possible at the lower rate now to have when I buy the next house. That's why I'd prefer to pay it down.
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not sure i understand the argument of building equity at the lower rate. cash is cash. if you invest that cash and get better than 3.875% than you will have more money to put down.
 
#82
#82
droski said:
not sure i understand the argument of building equity at the lower rate. cash is cash. if you invest that cash and get better than 3.875% than you will have more money to put down.
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True, but when it comes to having money to put down on a house, I'd rahter make sure it is there than even take the minimal risk that it won't be.
 
#83
#83
droski said:
not sure i understand the argument of building equity at the lower rate. cash is cash. if you invest that cash and get better than 3.875% than you will have more money to put down.
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Serious question (I haven't really gotten into investing, yet): How easy is it to find 4%+ returns? What are you looking at, mutual funds? Pretty reliable/safe?
 
#85
#85
tigervol9802 said:
True, but when it comes to having money to put down on a house, I'd rahter make sure it is there than even take the minimal risk that it won't be.
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very resonable considering you are talking about a short time horizon.

salutethehill said:
Serious question (I haven't really gotten into investing, yet): How easy is it to find 4%+ returns? What are you looking at, mutual funds? Pretty reliable/safe?
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plenty of solid dividend stocks have yields north of 4%. i'm bearish on teh market though. bond yields used to be north of 4% regurally as well. but personally i'd rather have the cash available (rather than pay down the mortgage) to take advantage of any corrections.
 
#86
#86
tigervol9802 said:
True, but when it comes to having money to put down on a house, I'd rahter make sure it is there than even take the minimal risk that it won't be.
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Part #2 to this - I pay down, something happens and income drops, (and I have checked on this) I can go and reamoritize over the remaining life of my loan for a very, very small fee.
 
#87
#87
droski said:
very resonable considering you are talking about a short time horizon.
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Like I said, if I knew this was my "final" house and I had it at 3.875, I wouldn't be in any hurry to pay it off unless I just came into unexpected cash.
 
#88
#88
tigervol9802 said:
Part #2 to this - I pay down, something happens and income drops, (and I have checked on this) I can go and reamoritize over the remaining life of my loan for a very, very small fee.
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yes, but you'll have to take the current mortgage rate which could be much higher and the refi fees apply as well. my $.02.
 
#90
#90
btw i'm not disagreeing with your plan, just saying if it was me i'd be using the money elsewhere (funding a 529 plan, maxing out my 401K [which you can borrow from if you have to], etc).
 
#91
#91
droski said:
personally i'd rather have the cash available (rather than pay down the mortgage) to take advantage of any corrections.
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Me too. Frankly, at a sub 4 rate you cpuld just stick the money in the bank.
It's worth the couple of points just to stay liquid.
 
#92
#92
droski said:
btw i'm not disagreeing with your plan, just saying if it was me i'd be using the money elsewhere (funding a 529 plan, maxing out my 401K [which you can borrow from if you have to], etc).
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We're doing Roth and 529 first, then 401(k) because as you know you can withdraw the contributed funds from the Roth penalty free.

I tell people to do 401(k) to employer match, then Roth, then consider 401(k) vs. 529.
 
#93
#93
that's what we do except for the 529 which is coming soon. Need to learn about that one as the Virginia page was a bit confusing at first read
 
#95
#95
utvolpj said:
that's what we do except for the 529 which is coming soon. Need to learn about that one as the Virginia page was a bit confusing at first read
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my rule of thumb is to not go crazy with the 529 if you think you might need the money down the road. the tax advantages are great, but flexibility might be worth more.
 
#96
#96
droski said:
my rule of thumb is to not go crazy with the 529 if you think you might need the money down the road. the tax advantages are great, but flexibility might be worth more.
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Agreed.

We really only plan to fund it for 5-7 years per kid.
 
#98
#98
Tyler Durden said:
LMFAO

Dave Ramsey's company fired 12 employees for premarital sex
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I was looking for work year and a half ago, was in the process of applying and they required you to disclose all social media accounts and basically disclose what charities you support and what books you read for personal development. I didn't finish the app, way too intrusive for my taste.

I won't claim to know the specifics but if that headline is true it wouldn't surprise me.
 
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#99
#99
KB5252 said:
I was looking for work year and a half ago, was in the process of applying and they required you to disclose all social media accounts and basically disclose what charities you support and what books you read for personal development. I didn't finish the app, way too intrusive for my taste.

I won't claim to know the specifics but if that headline is true it wouldn't surprise me.
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I am all for a business owner's right to put in any stipulations in place that they believe is in their best interest as the owner of said business.
 
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#100
#100
allvol123 said:
I am all for a business owner's right to put in any stipulations in place that they believe is in their best interest as the owner of said business.
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Certainly, just as I have the ability and right to decide if I want to work for them.
 
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