Quote:
Originally Posted by Scanner
The double mortgage worries me and probably means you are paying PMI on one of your mortgages since you only have about 13% equity in your home.
So, yes, I would make debt reduction part of your financial plan.
I would focus on these debts in this order:
1. Second mortgage (secure your home)
2. Your student loans (tackle a long term, non-appreciating asset investment - your education)
3. The Tahoe (short term debt but a reasonable rate)
If you can liquidate your Tahoe and come out ahead, I'd do it and pick a more reasonable, non-emotional buy car to drive (a used car). If you absolutely need a big-a$$ed SUV (you haul horses, rocks, boats, etc), I don't see it as a high priority, if you intend to keep it until the wheels fall off.
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Thanks for the advice! Just to clarify, there is no PMI on the mortgage, that is why we went with the 75/25 split mortgage instead of one overall 30yr note.
We did purchase the Tahoe used. The sticker on it was $52k, we purchased it for $36k owe $27.5k and hope to sell it for around $32k. Our plan is to get a 2002-2008 Subaru Forester for $10k or less.
No credit card debt. We had some at one point basically because we had to pay for our own wedding and didn't have enough cash to cover it.
To feh's point, I agree about controlling our spending habits. On the car and house we didn't put much down. Neither I nor my wife have ever been ones for delayed pleasure (we are instant gratification type personalities - but we are trying to control that).
jIM_Ohio - What great advice, thank you. A couple of quick questions. 1. what does PRPFX stand for? 2. are there any good investment calculators out there that anyone would recommend? 3. One thing I have always struggled with is determining how much money i will need at retirement; any good rules of thumb I should follow?