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

[2stepz_ahead]

the fukk?

the cost of the house is $180,000 not including interest. you have been paying your mortgage for 10 yrs of the 30.

I think y'all making this harder than it has to be.

y'all are looking at the wrong things.

the purpose is always financial freedom. I don't know anyone who wants to be in debt.

the bolded doesn't make sense.....cause those of us who actually know what it's like to pay a mortgage know that it's more than just "paying for 10 out of 30 years"

the exact circumstances of your interest rate (and even taxes for that matter) changes drastically what someone would do with 90K bruh

u asked a question with too many variables left out and acting like u want a straight forward answer

there is no simple solution to ur question.....90K wouldn't get u out of debt in this situation :shrugs

you had to be the one huh?

this is not about a straight answer.

I don't think you read the OP.

I already said we all have different backgrounds and it's not about right or wrong.

open ended questions are asked for a reason.

Just provide your opinion

smdh

LOL I did read the OP bruh.........the scenario is generic as fuck

me right now? I'd just put all of it into an investment

but u added in kids

and mentioned a mortgage without the possibility of interest........what type of mortgage doesn't include interest my nigga? haha

just be humble enough to say u might've fucked up a lil bit

well see...I gave you the mortgage amount. the payment and how many years was paid on 30 year mortgage...you can kinda narrow down the interest rate with that info. someone else came up with what would still be left just off that lil bit.

so with the provided scenario and such a large sum...tell me how and why would interest rate be important...

I also said kids in the OP

interest rate is very important cause obviously if I was paying 4% from 10 yrs ago when I 1st bought the house, then my principal/interest is only approximately $860/ month or so

throw in another $250/month for taxes and insurance, u paying $1110 a month..............$1400 - $1110 u paying an extra $290 a month on ur mortgage towards principal..............that extra $290 changes a lot

why? cause in real life if u at 10yrs in a house (let's assume u had it built brand new):

1 - u got have to start doing major repairs/services/replacement of at least one major appliance

2- assuming ur income has gon up within the 10 yrs u owned the house, ur tax return is going to decrease because ur mortgage deduction is decreasing due to less interest being paid (unless u got other deductions)

3 - u throwing in kids, how old are they? if 1 is about to go to college, then obviously that affects what u gon do with the money

the interest rate in the beginning sets the stage for everything......there is a huge difference between paying a 4% rate on a mortgage (which is where I came up with the whole $1110 payment) vs paying a 8.5% rate (which is equivalent to a ($1384 payment closer to what u mentioned in the OP)

that 8.5% rate changes everything........that would even mean that ur credit is suspect which brings even more issues to the table

that's why I said the OP was too generic.........most posters here ain't never paid/had a mortgage to truly understand how everything would be affected

so why not provide us with what you would do with either rates

 

[blakfyahking]

the fukk?

the cost of the house is $180,000 not including interest. you have been paying your mortgage for 10 yrs of the 30.

I think y'all making this harder than it has to be.

y'all are looking at the wrong things.

the purpose is always financial freedom. I don't know anyone who wants to be in debt.

the bolded doesn't make sense.....cause those of us who actually know what it's like to pay a mortgage know that it's more than just "paying for 10 out of 30 years"

the exact circumstances of your interest rate (and even taxes for that matter) changes drastically what someone would do with 90K bruh

u asked a question with too many variables left out and acting like u want a straight forward answer

there is no simple solution to ur question.....90K wouldn't get u out of debt in this situation :shrugs

you had to be the one huh?

this is not about a straight answer.

I don't think you read the OP.

I already said we all have different backgrounds and it's not about right or wrong.

open ended questions are asked for a reason.

Just provide your opinion

smdh

LOL I did read the OP bruh.........the scenario is generic as fuck

me right now? I'd just put all of it into an investment

but u added in kids

and mentioned a mortgage without the possibility of interest........what type of mortgage doesn't include interest my nigga? haha

just be humble enough to say u might've fucked up a lil bit

well see...I gave you the mortgage amount. the payment and how many years was paid on 30 year mortgage...you can kinda narrow down the interest rate with that info. someone else came up with what would still be left just off that lil bit.

so with the provided scenario and such a large sum...tell me how and why would interest rate be important...

I also said kids in the OP

interest rate is very important cause obviously if I was paying 4% from 10 yrs ago when I 1st bought the house, then my principal/interest is only approximately $860/ month or so

throw in another $250/month for taxes and insurance, u paying $1110 a month..............$1400 - $1110 u paying an extra $290 a month on ur mortgage towards principal..............that extra $290 changes a lot

why? cause in real life if u at 10yrs in a house (let's assume u had it built brand new):

1 - u got have to start doing major repairs/services/replacement of at least one major appliance

2- assuming ur income has gon up within the 10 yrs u owned the house, ur tax return is going to decrease because ur mortgage deduction is decreasing due to less interest being paid (unless u got other deductions)

3 - u throwing in kids, how old are they? if 1 is about to go to college, then obviously that affects what u gon do with the money

the interest rate in the beginning sets the stage for everything......there is a huge difference between paying a 4% rate on a mortgage (which is where I came up with the whole $1110 payment) vs paying a 8.5% rate (which is equivalent to a ($1384 payment closer to what u mentioned in the OP)

that 8.5% rate changes everything........that would even mean that ur credit is suspect which brings even more issues to the table

that's why I said the OP was too generic.........most posters here ain't never paid/had a mortgage to truly understand how everything would be affected

so why not provide us with what you would do with either rates

read again bruh and think about how much info is missing before I can really answer ur question

me personally right now irrelevant of the details of the OP, I would just invest the 90K in something that I know would make some money (or at the minimum would help me secure a loan)

at the higher rate of 8.5% obviously I would need to fix my credit.........and/or be trying to refinance my house cause 8.5% is too high to be paying IMO

 

[2stepz_ahead]

bump

 

[7figz]

It depends on how much I have left on the house: 20K or less, I'm paying it off.

Also depends on how much my bills are and how much I got saved up. I want 12 months of bills put away.

It also depends on my income. If I have enough income to pay bills and still add to my savings every month, then I'm clear to invest that money into something that brings money back (passive income).

 

[2stepz_ahead]

while i understand everyone ideals and respect their posts....

i dont hear too much of the what if....just a bit

this is how i see it and will post a graph later....

if i have a house worth 180k

i pay 1400 a month mortgage

im ten years in of my 30

i still might owe roughly 130k

if i have 7k in the bank but two paid off cars

obviously the 7k is me just starting to save because i might have been paying of the cars. or student loans since i dont have any. but anyway....

so i have 97k, three kids, 130k left on my house. and lets throw in for @blakfiya the possiblity of bad credit if i had a bad interest rate.

why wouldnt i take the 90k put it towards the house and refinance assuming i paid all my bills on time to get a better interest rate...lower my mortgage by a mile continue to save like i have and add the extra money into investments for the kids.

because what if one of the people get laid off.....

my goal to to get outta debt or make it manageable for one person God forbid something happens to one of us.

what good is saving the money....cuz if one person loses their job....they got the full weight of all the shit on them. now you living off savings.

while i see what some of yall are saying

we have to work smarter for tomorrow.

we have to work smarter for our family.

this is not the only way to go about it but we can all learn from each other.....we have to be willing to teach each other.

and in order to teach we have to be able to come to a persons level to speak with them.

we have to meet them where they are ...not belittle them because we have more knowledge or "those of us who have a mortgage" we have to teach those who dont.

@Sion your two cents?

 

[twenty2]

Late as fuck on this post... But if I get a chance to knock as much of my mortgage down as possible I'm doin it....ASAP. Not to mention, if you drop a huge chunk on principal...that's gon' automatically knock a huge chunk off the interest and you gon' owe less than your current statement would have you believe if you would just subtract that lump sum (in this instance 90k... So instead having 40k left to pay it would actually be less because that principal payment affected the interest calculations as well) The sooner I can get rid of a $1400 per month payment, the sooner I can save an additional 1400 bucks a month.

 

[blakfyahking]

Late as fuck on this post... But if I get a chance to knock as much of my mortgage down as possible I'm doin it....ASAP. Not to mention, if you drop a huge chunk on principle...that's gon' automatically knock a huge chunk off the interest and you gon' owe less than your current statement would have you believe if you would just subtract that lump sum (in this instance 90k... So instead having 40k left to pay it would actually be less because that principle payment affected the interest calculations as well) The sooner I can get rid of a $1400 per month payment, the sooner I can save an additional 1400 bucks a month.

bruh if u got a fixed rate mortgage u not getting rid of a $1400 payment just cuz u paid an extra $90K towards ur principal

that's not how a mortgage works......if ur original loan agreement say u gon pay $1400 a month for 30 yrs, u still gon pay $1400/month regardless if u got $179K or $10K in principal left to still pay off

yeah u will avoid paying a lot more interest in the long term and u can pay ur mortgage off sooner, but that $1400/month still gon be coming out ur check in the meantime

the best way to get rid of that $1400 payment is to either pay the principal off entirely, or to refinance to a lower rate cuz ur total mortgage payment will be lower per month

and I understand trying to pay off ur mortgage early, but as long as tax deductions are in ur favor the goal should be to pay less money, instead of paying ur mortgage off early

 

[blakfyahking]

while i understand everyone ideals and respect their posts....

i dont hear too much of the what if....just a bit

this is how i see it and will post a graph later....

if i have a house worth 180k

i pay 1400 a month mortgage

im ten years in of my 30

i still might owe roughly 130k

if i have 7k in the bank but two paid off cars

so i have 97k, three kids, 130k left on my house. and lets throw in for @blakfiya the possiblity of bad credit if i had a bad interest rate.

why wouldnt i take the 90k put it towards the house and refinance assuming i paid all my bills on time to get a better interest rate...lower my mortgage by a mile continue to save like i have and add the extra money into investments for the kids.

my goal to to get outta debt or make it manageable for one person God forbid something happens to one of us.

and in order to teach we have to be able to come to a persons level to speak with them.

we have to meet them where they are ...not belittle them because we have more knowledge or "those of us who have a mortgage" we have to teach those who dont.

@Sion your two cents?

@ the underlined.....not sure why u in ur feelings fam

I just pointed out that u made a few mistakes in the o/p.....that's not clowning those who don't have a mortgage

and I give out free financial advice on here all the time that generally u would have to pay at least $250/hour if u went to a business out in the street.....so I find the "belittle" comment confusing and unnecessary

@ the bolded.....based on the numbers I came up with based on a $180K mortgage paying $1400/month (which translates to a little over a 8.5% interest rate), actually you would still owe almost $160K in principal after payment #120

payment #120 is 10 years of 12 monthly payments

ur first priority is really looking at ur personal financial situation and making sure u are making decisions that match up with ur financial goals........houses are not always good investments

ur 2nd priority should be to fix ur credit since u got urself into a high rate mortgage over 10 yrs ago.......if ur credit is straight now it would make sense to refinance anyways, whether u paid the extra $90K towards principal or not

 

[blakfyahking]

at least if u save the $90K and refinanced, u still have the $90K cash......otherwise if something happened to where u need the money u would just be turning around and getting a home equity loan anyway (which defeats the purpose cuz then u have to pay additional interest on that added loan).....might as well just keep the cash anyway

ur 3rd priority should be to have a plan for ur kids whether u paying for college or even possibly helping them start a business

finally if u worried about what happens to ur fam if God forbid something happens to u, then u should also go out and buy life insurance

I agree that getting rid of debt should be the goal, but that's not always realistic until u can make a certain amount of money

but in the meantime while u have debt u should use it to ur advantage

 

[blakfyahking]

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

 

[twenty2]

Late as fuck on this post... But if I get a chance to knock as much of my mortgage down as possible I'm doin it....ASAP. Not to mention, if you drop a huge chunk on principle...that's gon' automatically knock a huge chunk off the interest and you gon' owe less than your current statement would have you believe if you would just subtract that lump sum (in this instance 90k... So instead having 40k left to pay it would actually be less because that principle payment affected the interest calculations as well) The sooner I can get rid of a $1400 per month payment, the sooner I can save an additional 1400 bucks a month.

bruh if u got a fixed rate mortgage u not getting rid of a $1400 payment just cuz u paid an extra $90K towards ur principal

that's not how a mortgage works......if ur original loan agreement say u gon pay $1400 a month for 30 yrs, u still gon pay $1400/month regardless if u got $179K or $10K in principal left to still pay off

yeah u will avoid paying a lot more interest in the long term and u can pay ur mortgage off sooner, but that $1400/month still gon be coming out ur check in the meantime

the best way to get rid of that $1400 payment is to either pay the principal off entirely, or to refinance to a lower rate cuz ur total mortgage payment will be lower per month

and I understand trying to pay off ur mortgage early, but as long as tax deductions are in ur favor the goal should be to pay less money, instead of paying ur mortgage off early

Yes, your payments will remain to be $1400 and nah, you won't "get rid" of your mortgage with that one lump sum. But you will indeed cut out some of that interest and set yourself closer to the finish line. I personally would rather be lookin at between 5 and 10 years left than 20.

I'm just lookin at it from a perspective of trying to attain a little more (or in the case of a mortgage, a lot more) financial freedom. Refinancing and owing/paying less a month is all fine and dandy.....but I'd rather owe/pay nothing at all. For me, the faster I can get there, the better.

 

[blakfyahking]

Late as fuck on this post... But if I get a chance to knock as much of my mortgage down as possible I'm doin it....ASAP. Not to mention, if you drop a huge chunk on principle...that's gon' automatically knock a huge chunk off the interest and you gon' owe less than your current statement would have you believe if you would just subtract that lump sum (in this instance 90k... So instead having 40k left to pay it would actually be less because that principle payment affected the interest calculations as well) The sooner I can get rid of a $1400 per month payment, the sooner I can save an additional 1400 bucks a month.

bruh if u got a fixed rate mortgage u not getting rid of a $1400 payment just cuz u paid an extra $90K towards ur principal

that's not how a mortgage works......if ur original loan agreement say u gon pay $1400 a month for 30 yrs, u still gon pay $1400/month regardless if u got $179K or $10K in principal left to still pay off

yeah u will avoid paying a lot more interest in the long term and u can pay ur mortgage off sooner, but that $1400/month still gon be coming out ur check in the meantime

the best way to get rid of that $1400 payment is to either pay the principal off entirely, or to refinance to a lower rate cuz ur total mortgage payment will be lower per month

and I understand trying to pay off ur mortgage early, but as long as tax deductions are in ur favor the goal should be to pay less money, instead of paying ur mortgage off early

Yes, your payments will remain to be $1400 and nah, you won't "get rid" of your mortgage with that one lump sum. But you will indeed cut out some of that interest and set yourself closer to the finish line. I personally would rather be lookin at between 5 and 10 years left than 20.

I'm just lookin at it from a perspective of trying to attain a little more (or in the case of a mortgage, a lot more) financial freedom. Refinancing and owing/paying less a month is all fine and dandy.....but I'd rather owe/pay nothing at all. For me, the faster I can get there, the better.

oh I agree about doing whatever gets u financial freedom.......but financial freedom means more than just being debt free

I don't know about anybody else, but I have to live my life now.........I can't wait to start making moves with my money until once my mortgage is paid off after 30, 20, or 15 years

u pay that 90K towards ur principal then that money is tied up in the house instead of u having the cash available to make other moves that push ur money further......otherwise u still stuck with pulling the equity out of ur house later if u need some money (see my other post about the equity loan)

without refinancing tho u talking about paying almost $194K more over the life of the original loan......paying more towards principal would save u from paying a lot of additional interest

so yeah I could see paying the 90K out and with the additional 20K of equity (that came from 10yrs of making mortgage payments), refinancing it into a 70K mortgage........I just think there are better investments out there that make more money than a paid off house

i think an investment like a business is a better wealth generator than a paid off house that u still have to maintain and pay taxes on IMO

 

[2stepz_ahead]

Late as fuck on this post... But if I get a chance to knock as much of my mortgage down as possible I'm doin it....ASAP. Not to mention, if you drop a huge chunk on principle...that's gon' automatically knock a huge chunk off the interest and you gon' owe less than your current statement would have you believe if you would just subtract that lump sum (in this instance 90k... So instead having 40k left to pay it would actually be less because that principle payment affected the interest calculations as well) The sooner I can get rid of a $1400 per month payment, the sooner I can save an additional 1400 bucks a month.

bruh if u got a fixed rate mortgage u not getting rid of a $1400 payment just cuz u paid an extra $90K towards ur principal

that's not how a mortgage works......if ur original loan agreement say u gon pay $1400 a month for 30 yrs, u still gon pay $1400/month regardless if u got $179K or $10K in principal left to still pay off

yeah u will avoid paying a lot more interest in the long term and u can pay ur mortgage off sooner, but that $1400/month still gon be coming out ur check in the meantime

the best way to get rid of that $1400 payment is to either pay the principal off entirely, or to refinance to a lower rate cuz ur total mortgage payment will be lower per month

and I understand trying to pay off ur mortgage early, but as long as tax deductions are in ur favor the goal should be to pay less money, instead of paying ur mortgage off early

Yes, your payments will remain to be $1400 and nah, you won't "get rid" of your mortgage with that one lump sum. But you will indeed cut out some of that interest and set yourself closer to the finish line. I personally would rather be lookin at between 5 and 10 years left than 20.

I'm just lookin at it from a perspective of trying to attain a little more (or in the case of a mortgage, a lot more) financial freedom. Refinancing and owing/paying less a month is all fine and dandy.....but I'd rather owe/pay nothing at all. For me, the faster I can get there, the better.

oh I agree about doing whatever gets u financial freedom.......but financial freedom means more than just being debt free

I don't know about anybody else, but I have to live my life now.........I can't wait to start making moves with my money until once my mortgage is paid off after 30, 20, or 15 years

u pay that 90K towards ur principal then that money is tied up in the house instead of u having the cash available to make other moves that push ur money further......otherwise u still stuck with pulling the equity out of ur house later if u need some money (see my other post about the equity loan)

without refinancing tho u talking about paying almost $194K more over the life of the original loan......paying more towards principal would save u from paying a lot of additional interest

so yeah I could see paying the 90K out and with the additional 20K of equity (that came from 10yrs of making mortgage payments), refinancing it into a 70K mortgage........I just think there are better investments out there that make more money than a paid off house

i think an investment like a business is a better wealth generator than a paid off house that u still have to maintain and pay taxes on IMO

even still ...with s 70k mortgage..... we both buckle down for 1 yr and the house is paid off.

I refuse to owe for a tax break. a paid off house is an asset that you can borrow against if needed. but if both people are unable to work...at least unemployment can pay regular bills opposed to bills and mortgage.

I can not tell you how it felt to pay off my house...and only a fraction of money going to pay cable, electric , his. and water.

as for people getting life insurance... most would have it in case of death an some doesn't cover unemployment. but if you had universal or whole life, you could borrow against that as well.

but why go thru all that when you could have 95% of you check free to do what you like.

 

[2stepz_ahead]

also, while alot say invest or get another source of income....

you can make better decisions and take greater risks if you don't have to worry about missing a mortgage payment.

the main reason people don't gamble with entrepreneurship is because they want a steady income to know the bills will be paid.

think about what you can do without that monkey on your back.

 

[blakfyahking]

Late as fuck on this post... But if I get a chance to knock as much of my mortgage down as possible I'm doin it....ASAP. Not to mention, if you drop a huge chunk on principle...that's gon' automatically knock a huge chunk off the interest and you gon' owe less than your current statement would have you believe if you would just subtract that lump sum (in this instance 90k... So instead having 40k left to pay it would actually be less because that principle payment affected the interest calculations as well) The sooner I can get rid of a $1400 per month payment, the sooner I can save an additional 1400 bucks a month.

bruh if u got a fixed rate mortgage u not getting rid of a $1400 payment just cuz u paid an extra $90K towards ur principal

that's not how a mortgage works......if ur original loan agreement say u gon pay $1400 a month for 30 yrs, u still gon pay $1400/month regardless if u got $179K or $10K in principal left to still pay off

yeah u will avoid paying a lot more interest in the long term and u can pay ur mortgage off sooner, but that $1400/month still gon be coming out ur check in the meantime

the best way to get rid of that $1400 payment is to either pay the principal off entirely, or to refinance to a lower rate cuz ur total mortgage payment will be lower per month

and I understand trying to pay off ur mortgage early, but as long as tax deductions are in ur favor the goal should be to pay less money, instead of paying ur mortgage off early

Yes, your payments will remain to be $1400 and nah, you won't "get rid" of your mortgage with that one lump sum. But you will indeed cut out some of that interest and set yourself closer to the finish line. I personally would rather be lookin at between 5 and 10 years left than 20.

I'm just lookin at it from a perspective of trying to attain a little more (or in the case of a mortgage, a lot more) financial freedom. Refinancing and owing/paying less a month is all fine and dandy.....but I'd rather owe/pay nothing at all. For me, the faster I can get there, the better.

oh I agree about doing whatever gets u financial freedom.......but financial freedom means more than just being debt free

I don't know about anybody else, but I have to live my life now.........I can't wait to start making moves with my money until once my mortgage is paid off after 30, 20, or 15 years

u pay that 90K towards ur principal then that money is tied up in the house instead of u having the cash available to make other moves that push ur money further......otherwise u still stuck with pulling the equity out of ur house later if u need some money (see my other post about the equity loan)

without refinancing tho u talking about paying almost $194K more over the life of the original loan......paying more towards principal would save u from paying a lot of additional interest

so yeah I could see paying the 90K out and with the additional 20K of equity (that came from 10yrs of making mortgage payments), refinancing it into a 70K mortgage........I just think there are better investments out there that make more money than a paid off house

i think an investment like a business is a better wealth generator than a paid off house that u still have to maintain and pay taxes on IMO

even still ...with s 70k mortgage..... we both buckle down for 1 yr and the house is paid off.

I refuse to owe for a tax break. a paid off house is an asset that you can borrow against if needed. but if both people are unable to work...at least unemployment can pay regular bills opposed to bills and mortgage.

I can not tell you how it felt to pay off my house...and only a fraction of money going to pay cable, electric , his. and water.

as for people getting life insurance... most would have it in case of death an some doesn't cover unemployment. but if you had universal or whole life, you could borrow against that as well.

but why go thru all that when you could have 95% of you check free to do what you like.

like I said before, I think there are better investments than a paid off house......not sure how u think u can pay off an amortized loan of $70K within a year without making additional payments past $1400/month

a house is for wealth preservation.........investments are for wealth generation

u proving my point about a house being an asset that u can borrow against......why borrow just to pay interest again on ur own money? plus u can lose ur job at any point in time, what if u lost it in that same year?

doesn't it make sense to try to have another stream of income instead of locking it all up in ur house? and then ironically it will be even harder to get the money out of ur house by borrowing if u all of a sudden lost ur job.....that is the way the game is set up for mofos to lose

the money u save a month after u refi at $70K still has to be stacked...........what do u think is better for investing in a business right now: lump sum $90K cash up front now? or waiting almost 8 years in the future to save up that $90K from the money u saved from the refi?

what if u die or something severely changes in that 8 yrs?

that is why I say a house is not always the best investment because u can't get money out of it unless borrow against it, sell it, or rent it out.........u better off using the $90K now to set up an additional stream of income (ie. business)....the tax incentives are just another perk

this is from someone with a house already paid off and almost finished paying off another

 

[blakfyahking]

also, while alot say invest or get another source of income....

you can make better decisions and take greater risks if you don't have to worry about missing a mortgage payment.

the main reason people don't gamble with entrepreneurship is because they want a steady income to know the bills will be paid.

think about what you can do without that monkey on your back.

so what about if u just refi without the additional $90K payment added?

u don't think it's easier to generate a 2nd source of income with a larger lump sum vs waiting on future payments?

if a franchise costs $90K to get into right now, u would tell people to wait 8 more yrs to save that money just cuz their mortgage can be paid off quicker? c'mon bruh haha

 

[2stepz_ahead]

also, while alot say invest or get another source of income....

you can make better decisions and take greater risks if you don't have to worry about missing a mortgage payment.

the main reason people don't gamble with entrepreneurship is because they want a steady income to know the bills will be paid.

think about what you can do without that monkey on your back.

so what about if u just refi without the additional $90K payment added?

u don't think it's easier to generate a 2nd source of income with a larger lump sum vs waiting on future payments?

if a franchise costs $90K to get into right now, u would tell people to wait 8 more yrs to save that money just cuz their mortgage can be paid off quicker? c'mon bruh haha

a franchise does not guarantee money...

plenty of franchises go out of business.

but what if additional cost arise? what if the franchise fees go up? shit what if you get sick?

i have all the what ifs.

all investments are risky...and like i said....everyone doesnt have the heart to stand in an investment once its in the red when you have bills due.

we can go back and forth and i appreciate your view on things.

me personally...i work better knowing that if i mess up, foreclosure is not an option. things can go bad real fast.

i think that more people would operate better with less debt, if they are good with money.

congratz on being about to pay off your second home. i refuse to get another mortgage. if i cant buy it in cash....maybe i dont need it.

 

[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

 

[blakfyahking]

also, while alot say invest or get another source of income....

you can make better decisions and take greater risks if you don't have to worry about missing a mortgage payment.

the main reason people don't gamble with entrepreneurship is because they want a steady income to know the bills will be paid.

think about what you can do without that monkey on your back.

so what about if u just refi without the additional $90K payment added?

u don't think it's easier to generate a 2nd source of income with a larger lump sum vs waiting on future payments?

if a franchise costs $90K to get into right now, u would tell people to wait 8 more yrs to save that money just cuz their mortgage can be paid off quicker? c'mon bruh haha

a franchise does not guarantee money...

plenty of franchises go out of business.

but what if additional cost arise? what if the franchise fees go up? shit what if you get sick?

i have all the what ifs.

all investments are risky...and like i said....everyone doesnt have the heart to stand in an investment once its in the red when you have bills due.

we can go back and forth and i appreciate your view on things.

me personally...i work better knowing that if i mess up, foreclosure is not an option. things can go bad real fast.

i think that more people would operate better with less debt, if they are good with money.

congratz on being about to pay off your second home. i refuse to get another mortgage. if i cant buy it in cash....maybe i dont need it.

nothing guarantees money, but it at least makes sense to work to make more money than to just preserve the lil bit u have.....what is the whole point of saving if it's not to reach a certain lump sum?

well if u got $90K cash already, what sense does it make to convert it to something illiquid when u trying to build wealth?

meanwhile u could lose ur house tomorrow......ur shit could get hit with a hurricane/tornado/mudslide/sinkhole, ur house ain't guaranteed to be safe, that's why we purchase insurance

hell u could pay ur house off and then the neighborhood turns to shit.....now u stuck in a paid off house in a shitty neighborhood

at least with a business there are assets to sell off to help get u out.........I only gave a franchise as an example

once u put that money into ur house it's gone until u pay to get it out period

and I only got a second mortgage cuz I was able to rent out my 1st house at the time......my renters basically paid off my 1st mortgage

my second is where I currently live, I haven't decided to pay it off yet for the reasons I already advocated in this thread

and paying off ur home still doesn't guarantee u get to keep it, so foreclosure is still a factor for any home owner to worry about......just forget to pay off ur property taxes and see what happens......and taxes rise way more than franchise fees haha

 

[2stepz_ahead]

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.