Yeah I feel like that's something that's often overlooked by people that invest. If you're not making over inflation your "losing" money in my mind.
January '26 Chat -- Happy New Year, and Welcome to DuramaxDiesels.com!!!!
- Thread starter TheBac
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That's what my guy recommends to, but I don't really go for it. I think that's solid advice if all of your money's tied up in 401k's and stuff like that where you take a huge hit if you have to pull money out. I've seen my parents do that and it just makes no sense to me. We are lucky to have enough money in just normal investments to cover "any" emergency that should ever come up. When I pull money out of my investments to cover expenses I usually have it within a week.
The biggest factor is age of accounts and number of missed/late payments on them. Even if you are paying off a CC every month and keeping zero balance at the end of the month, the fact that you are responsible and making payments does add to their confidence that you are a good investment and or low risk. It may take longer to build the credit. But once you do it will stay high because nothing you do will knock it down
They may not make a lot of money off you but what they do make is consistent and guaranteed. At least in their eyes
No reason to change your strategy if it works
Had a conversation with a friend that paid his mortgage off 3-4 years early had a 3.5 rate.. one think that stuck with me .. while you're right on one hand, on the other, it's hard to put a price on the feeling that you don't have a bill due regardless of how well you can afford said bill.
Other other hand, which I think is what your getting at.. have said amount in savings so it's not actually coming out of ones check monthly
I don't have much experience with how renting goes and how the landlord deals with interest, but with a mortgage on a home, this is very much not correct.
Monthly payments have the interest build in. By paying monthly you are the investment and they make money off you beyond what you are paying for the house. If you pay it off early or make more then the minimum you force them to do the legwork to invest elsewhere to make more money.
Renting, I think they are going to invest that money either way wether ot be a monthly or yearly payment
But as Dozer said, it does feel nice to not have it consistently coming out of your paycheck ever month. But it does take a little more discipline to plan your expenses so one doesn't get too far behind when a 6+ month payment becomes due
On the flip side, there can be a level of comfort keeping that money in your own bank account and only paying what you need and holding onto the rest. This is probably more true for someone that might not stay at their location for long term or situations change and you need to pack up and move. Getting a refund on an advance payment can be difficult or not possible. I know someone this happened to. He originally had a mindset of making extra payments to try and pay off the loan early. He was only a few years away from paying it off and ran into trouble with work and his source of income got cut. Bank didn't care he made extra payments and kicked him out anyways. If he had held onto those extra payments in his own bank account he would have had several additional months of money to keep the house and find a new job. He payed about 25 years worth of payments in 15 years or so. But he couldn't stay for 25 years. . Bank made out good on that one. His situation changed my mind a bit on the paying it off early
Renting through, not sure if it's typical for the landlord to pass off interest to the renter. I would think that if they still have a mortgage on the rental then the answer is yes
I've seen it work both ways, monthly is due monthly regardless how much additional you pay..
The loan on my truck was the opposite, if I paid 3 months next bill was 3 months out.
My insurance is in-between the two.. kinda... It basically moves the next monthly bill to the left.. say.my monthly is 300 and I pay 400 next month is 200, but if I pay 600 next bill is still 300 on regular bill date.
That really comes down to how the loan/bill is structured, as far as I understand it.. with most mortgage, anything over monthly bill goes to principle or interest and not next months bill sounds like your friend didn't know that @2004LB7
My landlord is my Uncle and I have a cash/labor deal with him, either I fix his equipment or pay him an agreed amount and a rough hour rate for labor, parts cost goes against rent as well.. it's going to suck when I leave??
?
The loan on my truck was the opposite, if I paid 3 months next bill was 3 months out.
My insurance is in-between the two.. kinda... It basically moves the next monthly bill to the left.. say.my monthly is 300 and I pay 400 next month is 200, but if I pay 600 next bill is still 300 on regular bill date.
That really comes down to how the loan/bill is structured, as far as I understand it.. with most mortgage, anything over monthly bill goes to principle or interest and not next months bill sounds like your friend didn't know that @2004LB7
My landlord is my Uncle and I have a cash/labor deal with him, either I fix his equipment or pay him an agreed amount and a rough hour rate for labor, parts cost goes against rent as well.. it's going to suck when I leave??
?If you refer to my original post #45, I highlighted in red where you said "rent". Rent has no interest so is not worth paying early under any circumstance other than to feel good for that few months of not having to think about it. You receive no value for that rent payment other than a roof over your head. Everybody has to start somewhere so I am not knocking you please don't take it that way.
As far as mortgages go. Pay it as fast as you can depending on interest rate. If your mortgage rate is 3.5% but you can invest $100 a month in something making 5-7% interest, I would invest before putting it toward the mortgage. If you have never looked at an amortization calculator give it a shot. 200k over 30 years a 3,5% turns in to a lot of money. Even with a 850 you are lucky to touch a 5% right now.
Sorry for the rant.
Insurance (if you talking car or home) is cheapest the longest term you can get. 1 year for my 3 vehicles is about 6% cheaper than 12 monthly payments.
Car, progressive generally knocks 150-200 off the plan with 1 time purchase, haven't quoted a solid year, will come next renewal cycle
Need to get tags on my vehicles done.. usually buy multiple years, had everything split, only 3 of the 6 where due every year then I oops??
?Damn I like st Augustine. We used to go there all the time. Love the SUNSET GRILLEWave "Hi" to my brother in St Augustine as you pass by.
Its my understanding the carousel in St Augustine's park is originally from Lake Lansing park up here, and somehow my brother was involved in that.
Indiana playing very well so far. Hope they keep it going.
Tuff day today. We got the call from the hospital that they had a bed open and insurance approval for my son's inpatient treatment. Quick run down on him is he 12yo has Autism - low functioning, non verbal, PANDS, and severe self injury. I kept it together for the most part until we tried to leave and he started crying "go home". I had to pull my wife out of the room for my own sake aswell as hers. This is the first time he has not been with us since he was born. My wife and I are trying to stay busy, but are having a hard time finding something to do with ourselves. One of us have been holding him 24/7 for most of the last year. I found myself pacing around the house. Even normal things like eating dinner was weird since I normally hold and feed him at dinner.
Im sorry dozer. Thats hard as hell and you are a better/stronger man than I’d be.
Indiana Hoosiers National Champs. Unreal.
I hope it helps him and you all. That is some tough shit.
Well with the impending mess coming tonight and tomorrow... Uncle thinks we'll end up somewhere are 12-15" of dry snow. Farmers and their weather reports..
uncle and I dragged out this.. been sitting back in a corner since 20, who knows how long before that.. I'm sure this is older than me.. old JD 55KW PTO. We're going to hook it to my cousin house which is 100% electric everything... A 200A service panel is ~44KW
PTO shaft was frozen.. got it apart, anti spin sleeve broke fix that later
Wire wheeled everything I could then greased everything, and quickly got reminded grease guns at 10° don't work well
Probably little late to work on the portable generator I got from my dad when he passed... Last time I ran it carb kept dripping gas..
uncle and I dragged out this.. been sitting back in a corner since 20, who knows how long before that.. I'm sure this is older than me.. old JD 55KW PTO. We're going to hook it to my cousin house which is 100% electric everything... A 200A service panel is ~44KW
PTO shaft was frozen.. got it apart, anti spin sleeve broke fix that later
Wire wheeled everything I could then greased everything, and quickly got reminded grease guns at 10° don't work well
Probably little late to work on the portable generator I got from my dad when he passed... Last time I ran it carb kept dripping gas..
Anyone want to go swimming? Its only 14 here in Odessa. Stuck here untill they resume flights again. Allegedly Monday but the forcast is still below freezing even in the afternoon. Have a feeling they will cancel that too.
First proper snow storm in my area of Ohio in a few years solid 9" in none drift areas
Should probably do something about this when I get back to the shop
Should probably do something about this when I get back to the shop
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