House Mortgage -- Countdown

[mo0n]

Mo0n - all star performance. Great job. Best posting I've read all day on the web.

Aww thanks

[RyanBuckly]

Unfortunately, I haven't paid my mortgage completely. I still owe the bank a lot of money. The most frustrating part is that now due to COVID19, some banks have lowered their interest rate. I even read somewhere that the current interest rate for the mortgage is at its record lowest point. My mistake was that I signed up for a fixed interest rate. I was too scared that it will increase at some point. Now, I receive only 80% of my salary, because I work from home. My wife lost her job, and I can barely afford to pay my mortgage. I asked people from Mortgage Advice Cardiff to help to review my agreement. Hopefully, they will help me get a lower rate.

[Randomsaver]

Mortgage Principal : $21K

[Randomsaver]

I am thinking of doing a HELOC to invest in stock market, now that my mortgage is low. Anyone of you guys done it? What rates or terms did you get? I so missed last year's run up.

[Jluke]

I am thinking of doing a HELOC to invest in stock market, now that my mortgage is low. Anyone of you guys done it? What rates or terms did you get? I so missed last year's run up.

So you can buy high?

i would stick with your original plan. Maybe use new money to invest more.

[disneysteve]

I am thinking of doing a HELOC to invest in stock market, now that my mortgage is low.

Lousy idea. You want to put your home at risk to buy stocks. Let's say you do that and the market drops 20% or more. What then?

If you have the income to make the payments on that hypothetical HELOC, skip the HELOC and just invest that money directly each month. Figure out how much you would have borrowed and what the payment would be and start putting that much into your brokerage account monthly instead. The end result will be the same, and actually it will be considerably better because you won't be paying interest on the borrowed money.

[LivingAlmostLarge]

I am thinking of doing a HELOC to invest in stock market, now that my mortgage is low. Anyone of you guys done it? What rates or terms did you get? I so missed last year's run up.

A better bet was just paying the mortgage and investing. If you weren't taking 100% of 401k and Roth IRA maximum then you weren't maxing out everything. Also you can save up to $47k tax deferred per person after tax so a mega backdoor roth. That's what we've been doing instead of shoveling money at our mortgage. Mostly because now we have a fixed mortgage at 2.875% and because we can't get these years back of maximizing our savings in every tax deferred vehicle once we pay off our mortgage. So just "retirement" savings alone is $47k+ $12k + $4k ESA for 2 kids is our minimum. Then above that I figure that we might be able to decide the benefit of mortgage versus investing. Personally investing or savings wins mostly because we make a lot. And DH has no plans on not working for at least 3 years more (well probably 2034).

[james.hendrickson]

Mortgage balance: $318,405.44, down from $320,218.88.

I'd really like to get this thing paid off more quickly.

[Randomsaver]

You guys are right. Safer not to borrow HELOC. Thanks guys.

Mortgage Principal : $20K

[james.hendrickson]

Mortgage principal down to: $317,797.11.

[LivingAlmostLarge]

sometimes you need a little sunny thoughts. If we cashed out our taxable accounts we'd have 76% of our mortgage paid off. Sigh. It would be nice.

[Randomsaver]

Mortgage Principal : $18K

[Randomsaver]

A year from today, sitting on my rocking chair here, without debt on my house. (Pic was taken last month though).

[Randomsaver]

sometimes you need a little sunny thoughts. If we cashed out our taxable accounts we'd have 76% of our mortgage paid off. Sigh. It would be nice.

Exactly. I had to create my own psyche here and broke up my debt into chunks at earlier points.

Here is another sunny thought you may consider, think of your property's market value. A big mortgage is due to bigger market value.

[Randomsaver]

Mortgage Principal : $16K