November '22 Chat -- A gravy train? A gravy boat? Its ALL gravy!!!!

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clrussell

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Sep 23, 2013
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Thanks for this Tom.

I’ll start off with i am Bored with my vehicles. But it’s to expensive to replace or mod them so I have to learn to be content or win the lottery..
 
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Chevy1925

don't know sh!t about IFS
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Thanks for this Tom.

I’ll start off with i am Bored with my vehicles. But it’s to expensive to replace or mod them so I have to learn to be content or win the lottery..
just kinda go johnny cash and buy one piece at a time lol. i have aquired more parts than i have time to incorporate them.
 
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clrussell

pro-procrastinator
Sep 23, 2013
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just kinda go johnny cash and buy one piece at a time lol. i have aquired more parts than i have time to incorporate them.

Funny. I’ve actually been buying lbz parts one piece at a time it’s just not as exciting haha.

Also In the boat that I don’t have time to mess with another project so it’s just pile up parts and hope one day I have time.

Shit I have a new set of shocks for my older Landcruiser and have had for two months that I can’t get put on.
 

68ss

Member
Dec 30, 2019
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I have a kryptonite front end to put on mine and a brake job in the floor for my 4runner. Last but not least….GO VOLS!
 

KyleC4

Tech
Dec 30, 2016
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Finally getting around to painting my family, living room area. I hate painting. But once done I can put up new window casing which at least means getting to play with saws and nails. Need a break from the ol‘ wrench and sockets. And to be combative…..go Bulldogs !
 
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2004LB7

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Dec 15, 2010
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Change of subject

what's all your thoughts on paying off the mortgage early? either in increased monthly payments over the course of the term so as to reduce the term by say 10 years or so. or maybe large chunks once a year so as to reduce it down to maybe 10 years or so. or making a one time large payment to basically paying it all off or nearly so

I have a little over 90k left on the house. monthly payments are about $720

option #1
online calculators say if I put an extra $500 down each month I should pay it off in about 9 years and save $38k in interest payments. I would have to put down $54k out of my savings but without a mortgage payment I could put that back into the savings and recoup it back in about 6.25 years

option #2
or I do something like an additional $10k a year which is supposed to save around $46k and pay off the mortgage in about 6.5 years. I would shell out somewhere around $65k and it would take 7.5 years to put that back into savings but I would start saving 2.5 years earlier so would have it all put back in about 1.5 years earlier then option #1

option #3 is put $93k down to effectively pay it all off in one shot (or break it up into 12 payments to pay it all in one year which would be close to the same). save $64k in interest. pay it off in one year and start putting the savings from mortgage payments back into my savings. I would start saving right away (or in one year) and would have it all restored back so my savings account in just under 11 years. I would start replacing it 6.5 years earlier then option #2 and have it all replaced about 1.5 years before option #2 and 3 years before option #1

or do I just keep paying the regular payments not knowing how the economy is going to play out in the next few years and having a savings account I can resort to incase of emergency or im my company goes bankrupt, lays me off, etc and I need the cash. on the other hand having no mortgage payment and only a minimum payment for utilities and property taxes could also be a life saver in times of hardship knowing the bank can't take your house for missed payments. I would also think if I ever moved and sold the house profits would be higher as I didn't pay as much on interest to the bank. but if I did sell the house then I could pay it all off in one shot anyways but I would have less leftover to buy a new house.

I know many of you are pretty smart about this stuff. what are your thoughts. can't really ask my family about this stuff because they will more then likely give an emotional response instead of a logical one. they wouldn't understand that the reason I have the money stashed away in savings is because I live frugally. they would likely say I should be spending more of it on (to me anyways) useless items and luxuries. I would be driving a new car, have fancy clothes, etc but be broke. I would rather save and spend it on what matters and always have some for emergencies
 
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Chevy1925

don't know sh!t about IFS
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i think about this same stuff, jason.

So i think it will depend on where you are in life. are you getting ready to retire? still many more years of work ahead? is you mortgage payment low for the area, county, state? is your interest rate low?

if you still have lots of work left before retirement, id keep sacking away your money for retirement and NOT put it into the mortgage. let the stock market build it (yes i know its in the tanks which is the perfect reason to buy right now. it WILL come back, just takes time and i assume you have that time). if you pay teh house off and it takes you 6-7 years to recoupe savings, what did you gain from that? just pack of interest paid in? im gunna sounds like a fucking broker BUT if you invest that money, you would actually more over that 6-7 years than the interest you would be saving. This even goes for just making out an IRA. if you have the time, there is no sense rushing to pay it off. the savings is also a good backup plan incase econ does go south and your out of a job. now you just use the savings as a monthly payment untill you get a job that can start taking that over and you still have a good chunk of savings left.

So if you have time before you go on a fixed income, let the house ride on that mortgage and put the savings or exrta money where you can make more from it down the road. if you dont have a retirement or play in stocks, well that changes things a bit. i would probably look at a way that i can still tuck money away but also shorten my mortgage life. this way you are not shrinking a nest egg but yet still saving interest AND you keep yourself safe should the worse case scenario happens.

if you missed the low interest rate boat, monthly mortgage cost is high for the area, and you still have time before retirement, id have to weigh out if investing in stocks would net me back more than the house interest paid in. otherwise id probably looking at your first option since house refi aint going to help. thats the other thing, if interest rates drop again, you can always refi but its gotta be worth while and certainly dont take the additional 30 years or equity out of the house, just do it for the lower interest rate. i did this on our old house and switched from a 30 to a 15 year, dropped 10 years off my payments, and dropped 100 bucks a month (lost PMI and interest rate was almost 2% lower).

if you are close to retirement, thats a whole nother ball game.
 

PureHybrid

Isuzu Shakes IT
Feb 15, 2012
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Well, definitely don't keep doing what you are now LOL. Yes keep saving, but your money just sitting in a savings account is essentially losing value. At the very least stash it in a CD. My 401k contributions are pretty high, but I'd be leery of dumping that much into the market unless I or the investor really knew what they're doing / could guarantee a return. $.02

Personally, I'd pay the mortgage off soon as possible. Like you said, being free and clear on your house could be a life saver in a depression. And I hate owing people money, especially with as much as a mortgage screws you.
 

2004LB7

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to help you out a little as I missed some important information. 40 years old so still have a ways to go before retirement. I have an IRA that is not doing so hot in this economy. was building up nicely under previous administration but tanked under the current. it's set for aggressive growth so hopefully it will bounce back better when things improve. right now not nearly enough to retire on

I have a lot more just sitting in a savings account at the bank. I've always be wary of having too many eggs in one basket but now this basket is getting heavy so I was looking to do something with it. I was thinking of dumping some of it in the IRA but held off to see what the market was going to do. this was several years ago and the signs told me to wait as it was not looking good for the future. sure enough look where we are at.

I was thinking that being able to save (or make if you look at it differently) an additional $38k in 15 years for option #1 ($2,500 per year) to $64k in 11 years ($5,800 per year). not great but essentially guaranteed.

if I was to just use the savings for an emergency such as paying the mortgage in the event of a layoff, it would last approximately 9 years not counting other expenses. so maybe 5 years with.

the issue here is I would have to put back everything I spent and I would have less time before retirement to do it. my reasoning for paying off early is the monthly expenses would be much less and I wouldn't likely loose the house if I was unable to find a new job in a timely manner. I also house my disabled mother so I have to think about her too. if I'm carful, $10k in savings which is about what I would have left over, not counting pulling any out of my IRA if needed, would probably last several years which I would think is enough time to find another job when the market improves.

and without having a mortgage payment, even a minimum wage job would be enough to eat and pay utilities. and if I get a better job later then I would be able to build up the savings much faster then now. I would basically be putting the mortgage payment into savings instead.

on the house. I picked it up in 2011 right about the time when the market was right at the bottom and just before heading back up. interest rate is 4.25%. I've looked into and even started a refinance not long ago when the rate was lower but I wasn't able to get a good enough deal to make it worth the hassle. I was only going to save about $20 a month but spend several thousand in the fees. I gave up in the end when it was getting to be too much hassle for too little gain
 

Chevy1925

don't know sh!t about IFS
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just keep in mind, you can always pay the mortgage down from your savings at any time, no matter the situation you are in. you cant get that money back without a refi or HELOC or loan.

so if you pay it off, that equity in that house is only if you sell it and thats not something that can be done the fastest. You can have shit like your health or others health be a money suck, injured, loose an engine on the truck or car, etc.

Right now you have options. paying it off lessens your options if shit goes south. id rather have many options than only a few should something come up and specially now that im finally seeing a slowing in the housing market. i think you built a nice area to be comfortable. is there an option to contribute to both additional on principle that does not pull from savings but still contributes a small amount there?
 
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2004LB7

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good point James. probably best to revaluate in a few years and see if it's worth it at that time. better to keep the option open right now with the current situation.

to be able to contribute more to principle would mean not putting any away for retirement and wouldn't be very much. maybe an extra $100 per month which only saves me about $15k and 4 years. not worth it. any extra payment would basically be drawing from the savings

in a few years if the market improves, I could just put $50k into my IRA and in the same 11 years as option #3 it would make about $50k per the online calculations. right now it is loosing so no sense in contributing until things turn around
 

TheBac

Why do I keep doing this?
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Apr 19, 2008
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I thought it was all about collecting the stuff, I didn't know you actually had to put it on.... :LOL:

Besides, Doesn't it hold its value better if it's still New in box? ;)
Funny you say that, as I recently found an item ive been looking for for, oh, 16 years and bought it. Now to install wnever I find the time and gumption.....

I paid our mortgage off 5 years early. All I did was put an extra $100 or so every month toward the principal. Then I bought the Vette.....:LOL:
 
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1TRIKHD

Country boy Limo.
Sep 15, 2015
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Funny you say that, as I recently found an item ive been looking for for, oh, 16 years and bought it. Now to install wnever I find the time and gumption.....

I paid our mortgage off 5 years early. All I did was put an extra $100 or so every month toward the principal. Then I bought the Vette.....
Thats what the wife and I do. We put a few hundred dollars extra towards the principle every month. I also try not to look at what we still owe

Sent from my LM-G900 using Tapatalk
 

clrussell

pro-procrastinator
Sep 23, 2013
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Great timing on the mortgage junk. Thinking about buying a house because I hate rent.

Interest rates super suck right now. What’s even shittier is I sold my old house in may for pennies on the dollar.. well sorta. Cleared 40k and walked away. But looking at housing now I should have kept it and invested 40 into it and lived there. Payment would still be less than half of what we are looking at now.

Oh well. At least I’m out of debt because of selling it.
 

1FastBrick

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Dec 1, 2016
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Funny you say that, as I recently found an item ive been looking for for, oh, 16 years and bought it. Now to install wnever I find the time and gumption.....

I paid our mortgage off 5 years early. All I did was put an extra $100 or so every month toward the principal. Then I bought the Vette.....:LOL:
Do tell ! what did you find???
I have been wanting an LBZ but I am not paying 30-40K for one that is in the same shape as my LLY... So I did the next best thing. Bought a wrecked doner truck... LOL
 
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