financially yours. question 1. lump sum of $90k

[blakfyahking]

and for the record I'm advocating that people should play to "win"

instead of just playing hoping not to "lose"

there's risk in everything..........in this example if u win after risking it my way then u ahead of the game

if u lose then u just out of $90K u wasn't counting on to pay ur bills anyway

by playing it safe, at best u gon wait 8yrs just to make the $90K u paid into ur house back...............meanwhile after 8 yrs the other mofo who chose to make the investment might be the one offering u a job so u can continue to work just to pay off both ur and his mortgage haha

if u lose playing it safe, that $90K is gone along with ur house, the only difference is u will owe the bank less when they take ur house from u SMH

 

[twenty2]

So @blakfyahking ... If basically what you're saying is it wouldn't make sense to pay off the/a mortgage...or at least get a hell of a lot closer to it and cut those numbers of years and interest down...why do you have a house paid off as well as almost another one? And feel free to tell me if it's none of my fuckin business... But by your stance thus far, wouldn't it have been of more benefit to just continue paying those until full maturation or (not sayin this is you) just keep refinancing forever and never pay them off (I've known people who carry this train of thought)

Not bein facetious... Just curious as to what's different about this scenerio to where you'd choose to remain on the hook for 20 years?

 

[blakfyahking]

Debt is the muthafuckin devil

It's not until you extrapolate your earnings long term that you notice how much of a difference it would have made in your financial status if it wasn't a factor.

debt is a tool just as much as it can be a burden

if borrowing didn't make sense, people would've never get mortgages in the 1st place

explain "extrapolation" for slow folks such as myself

i agree with the bolded...it can hurt and help...problem is....while it can give you freedom...you must pay for the freedom first.

but if you are a sickly person....or want to be mobile, debt can hurt you.

case and point,

if i had a bigger home with a mortgage...house costing $350k

i would have to sell it to be able to move abroad...like most people did. and most likely taking a loss.

but since i paid off my home when i did....it didnt matter where we moved too because i wasnt trapped with a mortgage.

and before you say ...you can rent it out...it some communites...its hard to rent homes.

I doubt that u purchased ur home with the fear of taking a loss tho

u bought ur house for the same reason most others do, which is that u needed a home and prob didn't want to rent

single family homes can be poor investments which is why it doesn't make sense to buy a house and worry about taking a loss.........u can't control the economy or ur neighbor's home values.......so depending on life's circumstances u may have had to sell at a loss anyway

the amount of the mortgage is only relevant to ur income and ur home's location...........$350K can be a small ass house, or it could be damn near a mansion depending on where the house is located

I agree debt can hurt folks but that's only if u take on too much and don't have a plan

most people don't get large mortgages without having a way to pay them off in the 1st place

 

[blakfyahking]

So @blakfyahking ... If basically what you're saying is it wouldn't make sense to pay off the/a mortgage...or at least get a hell of a lot closer to it and cut those numbers of years and interest down...why do you have a house paid off as well as almost another one? And feel free to tell me if it's none of my fuckin business... But by your stance thus far, wouldn't it have been of more benefit to just continue paying those until full maturation or (not sayin this is you) just keep refinancing forever and never pay them off (I've known people who carry this train of thought)

Not bein facetious... Just curious as to what's different about this scenerio to where you'd choose to remain on the hook for 20 years?

remember I said that houses are for wealth preservation......paying off a house is always secondary to making more income IMO because of time horizons for investments

and truthfully u never really own ur house.....that's the game the govt sells u to keep u on the treadmill

I didn't originally intend to get more than 1 house, but I saw an opportunity, did the numbers, and I jumped out there.....it ended up working for me......my next move is to get into commercial real estate cuz I hate tenants haha but that's another story

honestly I used the o/p as my personal soapbox to get others to think further than just paying bills and continuously working for others just to have a lil bit of what they want........when u can instead make power moves for urself and have a lot

and honestly the whole home ownership game is overrated IMO.....I'd rather pass down cash instead of a home to my kids in the end

 

[Bulletproof Wallets]

60k into retirement.

10K to pay off my current debt.

20K into stocks.

Keep working overtime and living right.

 

[2stepz_ahead]

not sure where the 8 years comes into play....

but like i was saying rougly 130k.....you came up with

Yall fuck with me on this math.

10 years of $1400 payments should come out to 168k. Subtract that from the 180k for the house, that leaves us with 12k. A'ight, I got that part wrong in my first post and it throws off everything. Starting over with that refreshing blessing of 90k, I use some of that to knock out the 12k left on the house. That leaves us with 78k. We could add that to the 7k in savings and we get... shit, we get 90k again.

My math was fucked at first, but this looking legit right here.

the bolded isn't correct because mortgages are loans with payments that are amortized (google it)

so 1400 wouldn't just be 168K after 10 years of payments because of interest

10 years ago if u had a 4% fixed rate on a 30 yr loan (where 4% was a good rate right before the economy started crashing in 2007).....u should be paying around $860 a month for principal/interest, which would leave u with approximately 176K in principal to still pay off

so obviously if u paying $1400 a month, u should have a whole lot less principal to pay off..........unfortunately I don't have my financial calculator on hand.......and t/s didn't specify the interest rate on the house which changes what I would do with my money drastically

the bolded is incorrect....I don't know how I typed that number for principal SMH

the correct amount of principal still left to pay off would be approx $142K after payment #120

142k.

so roughly is in the ball park

lets say you refi after paying 90k ....your 1400 and month dropped to like $430 a month.

with the 7k you have in the bank.....you can add the extra 1k and month to that. or lets just take it that the 1k goes to bills including the mortgage.

these are estimates:

430 for mort

100 for car insurance

50 for water

100 for electric

100 for hoa

120 for cell service

100 for cable

now if you bringing in like 6k and month total after 12 months you have= 72k at the end of the year to add to the 7k.

now you have 79k.

now you are close the the 90k you started off with and can now invest without the strain. and can still have the tax break you stated.

and you can slowly take your time to research what type of business you want to invest in while you are saving the money.

but to sit on it and research.....nah....the money isnt working for you. with what i just stated....your money would be working for you and giving you flexiblity.

creating a new income is not easy and simple.

 

[AZTG]

Cats is talking from the position they in though.

Like my current position, im 27, no kids, no wife. So if I had 7k in savings, lets say i bought a house for whatever reason and im paying 1400 a month for mortgage and I get 90k, im throwing it all into some type of business. Do my research and risk it all. If I lose it? Who cares, its just money.

But the situation in the OP is different. In the OP im married with 3 kids and only 7k in savings. In that situation I could see taking 40k and throwing it on the house and refinancing to have a lower monthly payment but the bulk of it has to be invested in a way where I can get it if I need it. Not a savings account but maybe a CD, a bond, a extremely safe stock. Shit I need a backup plan if I got 3 kids and only 7k saved for just in case shit.

And i dont see how monthly payments ever go down to 400 a month. End of the day taxes and insurance on the house is probably 400 a month, give or take a 100 depending where you living. So no matter what you do your still gonna be paying 700-800 a month even if you refinance, which is still a good thing to do. But to me personally id need access to more to cash than 7k if im providing for 3 kids.

 

[2stepz_ahead]

Cats is talking from the position they in though.

Like my current position, im 27, no kids, no wife. So if I had 7k in savings, lets say i bought a house for whatever reason and im paying 1400 a month for mortgage and I get 90k, im throwing it all into some type of business. Do my research and risk it all. If I lose it? Who cares, its just money.

But the situation in the OP is different. In the OP im married with 3 kids and only 7k in savings. In that situation I could see taking 40k and throwing it on the house and refinancing to have a lower monthly payment but the bulk of it has to be invested in a way where I can get it if I need it. Not a savings account but maybe a CD, a bond, a extremely safe stock. Shit I need a backup plan if I got 3 kids and only 7k saved for just in case shit.

And i dont see how monthly payments ever go down to 400 a month. End of the day taxes and insurance on the house is probably 400 a month, give or take a 100 depending where you living. So no matter what you do your still gonna be paying 700-800 a month even if you refinance, which is still a good thing to do. But to me personally id need access to more to cash than 7k if im providing for 3 kids.

thing is ...you never know what people were paying for .....like i stated....people could have been paying off a car or student loan. just putting all their money somewhere else and just got around to saving.

 

[AZTG]

Cats is talking from the position they in though.

Like my current position, im 27, no kids, no wife. So if I had 7k in savings, lets say i bought a house for whatever reason and im paying 1400 a month for mortgage and I get 90k, im throwing it all into some type of business. Do my research and risk it all. If I lose it? Who cares, its just money.

But the situation in the OP is different. In the OP im married with 3 kids and only 7k in savings. In that situation I could see taking 40k and throwing it on the house and refinancing to have a lower monthly payment but the bulk of it has to be invested in a way where I can get it if I need it. Not a savings account but maybe a CD, a bond, a extremely safe stock. Shit I need a backup plan if I got 3 kids and only 7k saved for just in case shit.

And i dont see how monthly payments ever go down to 400 a month. End of the day taxes and insurance on the house is probably 400 a month, give or take a 100 depending where you living. So no matter what you do your still gonna be paying 700-800 a month even if you refinance, which is still a good thing to do. But to me personally id need access to more to cash than 7k if im providing for 3 kids.

thing is ...you never know what people were paying for .....like i stated....people could have been paying off a car or student loan. just putting all their money somewhere else and just got around to saving.

I get what your saying, but now were going off intangeables. The person in the OP could have investments and that why he got only 7k saved. I mean at that point we could turn this into anything. But going off just the OP, it seems like my dude and his wife dont know how to save money and should use this as a blessing to build a safety blanket.

 

[EmM HoLLa.]

Ultimately,

It's all about your goals and strategies. First thing we all need to acknowledge is that we all have different goals.. And even if we had the same goal our strategies may differ..

For me.. My view on debt is this.. I'll carry some debt (mortgage, auto lease) until I have enough cash to be totally liquid.. (Meaning.. Before I pay of a house completely.. I need to have 10x that amount in cash/other assets. Otherwise I will use that cash to get there... ) Simply because I work too damn hard to put off enjoying the fruits of my until later in life. Also because there are many ways to really get rich right now. Those are my goals.. A balance between enjoying life today and doing what I need to do to get wealthy sooner than later.. Hence the strategy to invest.