House Mortgage -- Countdown

[Eagle]

Mortgage Balance: $0.00

Time to start saving again...

Congrats Jluke!

I haven't been here in a while.

[Eagle]

Mortgage Principle: $96,256.38

Mortgage Principle: $94,074.45

Not much progress. We've had a lot of extra expenses we have cash flowed such as my car maintenance, family van maintenance, doctors visits, daughter's emergency room visit, and daughter's surgery. Hopefully the second half of the year will be better.

[Nutria]

Mortgage Principle: $94,074.45

Not much progress. We've had a lot of extra expenses

That's why I prefer the flexibility of 30 year mortgages over 15s.

we have cash flowed such as ...

Have you considered paying these kinds of large debts using 0% (technically, "3%") transfer offers? They help to keep you liquid (in case you really need a lot of dead Presidents up front for something), and you can set up automatic payments for as many months in the 0% offer window.

[Randomsaver]

Mortgage Principle: $94,074.45

Not much progress. We've had a lot of extra expenses we have cash flowed such as my car maintenance, family van maintenance, doctors visits, daughter's emergency room visit, and daughter's surgery. Hopefully the second half of the year will be better.

Hang in there buddy. Here's wishing you and all those paying mortgage a better half of the year!

[Nutria]

If all goes according to plan, the mortgage will be paid off in August 2017.

[Randomsaver]

Focused Debt : $8K

Focused Debt : $7K

[tqf258]

$86,460 slow and steady, only making required payments now, as we are doing a few upgrades once they are complete will be full throttle on paying it down!

[Randomsaver]

Earlier I made an average estimate of household debt in US and came up with $135K.

This new report based on 2015 data shows the average is $130K. I'm just off by $5K.

http://www.fool.com/retirement/general/2016/05/08/the-average-american-household-owes-90336-how-do-y.aspx

[Nutria]

Earlier I made an average estimate of household debt in US and came up with $135K.

This new report based on 2015 data shows the average is $130K. I'm just off by $5K.

http://www.fool.com/retirement/gener...-how-do-y.aspx

What I find interesting is that only 35% of households have CC debt.

[Randomsaver]

What I find interesting is that only 35% of households have CC debt.

At first I thought that was awesome that it's low.

But then, I thought about households who most likely get rejected on CC application.

Eniweys, I really do hope that the credit card industry dies. That will solve all credit card problems. I am of firm belief that the credit card problem is not an issue of money but of the lack of discipline in handling money. And that credit card industry preys on that.

[Nutria]

Eniweys, I really do hope that the credit card industry dies. That will solve all credit card problems. I am of firm belief that the credit card problem is not an issue of money but of the lack of discipline in handling money. And that credit card industry preys on that.

That's why the CC industry is a symptom, and killing it is futile.

The proximate cause of most of our money ills is advertising.

But advertising just preys on human greed and short-term thinking, and (the vast majority of) people were, are and always will be ready and eager to believe what they want to believe. As Demosthenes knew 2400 years ago, "a man is his own easiest dupe, for what he wishes to be true he generally believes to be true."

[Randomsaver]

Mortgage Principal : $135K

Mortgage Principal : $127K

Been tapping to the college savings fund (CSF) that before the year is over, I see my CSF dwindling to just $2K. I made the right move since starting last year, the stock market has gone down. Instead of the fund getting depleted, I have used it to deplete the interest payments on my mortgage.

[Randomsaver]

My monthly interest expense went down from $338 on 1/1/2016 to $326 for 3/1/2016. That is $12 payment swing to the side of principal reduction.

My monthly interest expense went down from $326 on 3/1/2016 to $301 for 6/1/2016. That is $25 payment swing to the side of principal reduction.

This is the figure I am more conscious with. I guess I do not really mind debt -- it is how much of dollar I lose each month to debt that I mind.

Others concern themselves with rates. They would say do not pay more to mortgage debt because the rate is low whereas if you put your money in stock investments, it averages a return of 8%.

While that is true, on cases such as my case, where I have more debt than savings (which I would gander is true for most people), I think I'd net lose money if I went with the savings. My thought is this : a 4% interest on $200,000 debt is $676 in a month, while an 8% return on a savings of $80,000 is $533 in a month, netting a loss of 533-676 = -$143. Looking at the actual net dollars to me is more important than the rates.

[Jluke]

While that is true, on cases such as my case, where I have more debt than savings (which I would gander is true for most people), I think I'd net lose money if I went with the savings. My thought is this : a 4% interest on $200,000 debt is $676 in a month, while an 8% return on a savings of $80,000 is $533 in a month, netting a loss of 533-676 = -$143. Looking at the actual net dollars to me is more important than the rates.

I posed a similar scenario in another thread. I liked this reply as an alternate viewpoint.

http://www.savingadvice.com/forums/personal-finance/83488-how-much-your-mortgage-payment-principal-interest-only-4.html#post428675

[Randomsaver]

I posed a similar scenario in another thread. I liked this reply as an alternate viewpoint.

http://www.savingadvice.com/forums/p...tml#post428675

I read the post you linked. He was comparing a 4% annual mortgage rate to a 10% MONTHLY rate of return; or 4% vs 120% which is comical. Then he magnified the error by multiplying the numbers by 30 (years).