…because once again, i feel …because once again, i feel like being nosey….
no_such_reality
June 19, 2012 @
8:00 AM
And getting ready to refi but And getting ready to refi but debating the 15/30 year for that.
UCGal
June 19, 2012 @
10:15 AM
Currently 3 years into a 15 Currently 3 years into a 15 year fixed. But if we keep up extra principal payments we’ll be paid off in just over 2 years.
Even so – considering refinancing just to ensure we have super low payments if I get laid off. Need to decide quickly since my employer seems to be getting ready to hit us hard.
CA renter
June 19, 2012 @
5:08 PM
UCGal wrote:Currently 3 years [quote=UCGal]Currently 3 years into a 15 year fixed. But if we keep up extra principal payments we’ll be paid off in just over 2 years.
Even so – considering refinancing just to ensure we have super low payments if I get laid off. Need to decide quickly since my employer seems to be getting ready to hit us hard.[/quote]
Once again, you’re to be commended for your discipline, UCGal. You’ve made some very smart moves WRT your house.
Best of luck with your work situation. Sorry to hear they are thinking about more layoffs. 🙁
SK in CV
June 20, 2012 @
8:37 AM
UCGal wrote:Currently 3 years [quote=UCGal]Currently 3 years into a 15 year fixed. But if we keep up extra principal payments we’ll be paid off in just over 2 years.
Even so – considering refinancing just to ensure we have super low payments if I get laid off. Need to decide quickly since my employer seems to be getting ready to hit us hard.[/quote]
Given the uncertainty of your employment, have you considered holding on to those extra principle payments as an extra cushion? I’m guessing your current interest rate is pretty decent (even better if you refi now), and there are some pretty decent stocks yielding ~3% now, so your net cost would be pretty damn low for that extra flexibility.
UCGal
June 20, 2012 @
9:14 AM
SK in CV wrote:UCGal [quote=SK in CV][quote=UCGal]Currently 3 years into a 15 year fixed. But if we keep up extra principal payments we’ll be paid off in just over 2 years.
Even so – considering refinancing just to ensure we have super low payments if I get laid off. Need to decide quickly since my employer seems to be getting ready to hit us hard.[/quote]
Given the uncertainty of your employment, have you considered holding on to those extra principle payments as an extra cushion? I’m guessing your current interest rate is pretty decent (even better if you refi now), and there are some pretty decent stocks yielding ~3% now, so your net cost would be pretty damn low for that extra flexibility.[/quote]
I didn’t start paying extra on the mortgage till we had a very nice emergency fund built up. I’m good.
I understand the logic of leverage being good. Using other folks money to make money. I get it rationally. For me, the emotional aspect of retiring debt helps me sleep at night… Normally I’m very rational about about stuff – especially money. But not about debt. I really want to be debt free. It’s kind of like risk tolerance for one’s asset allocation… folks have different levels of comfort. Some are fine with very risky, potentially more profitable allocations, others are more comfortable with lower yield, less risky investments. (I’m in the middle on that one.)
Different strokes for different folks.
Coronita
June 20, 2012 @
11:00 AM
UCGal wrote:SK in CV [quote=UCGal][quote=SK in CV][quote=UCGal]Currently 3 years into a 15 year fixed. But if we keep up extra principal payments we’ll be paid off in just over 2 years.
Even so – considering refinancing just to ensure we have super low payments if I get laid off. Need to decide quickly since my employer seems to be getting ready to hit us hard.[/quote]
Given the uncertainty of your employment, have you considered holding on to those extra principle payments as an extra cushion? I’m guessing your current interest rate is pretty decent (even better if you refi now), and there are some pretty decent stocks yielding ~3% now, so your net cost would be pretty damn low for that extra flexibility.[/quote]
I didn’t start paying extra on the mortgage till we had a very nice emergency fund built up. I’m good.
I understand the logic of leverage being good. Using other folks money to make money. I get it rationally. For me, the emotional aspect of retiring debt helps me sleep at night… Normally I’m very rational about about stuff – especially money. But not about debt. I really want to be debt free. It’s kind of like risk tolerance for one’s asset allocation… folks have different levels of comfort. Some are fine with very risky, potentially more profitable allocations, others are more comfortable with lower yield, less risky investments. (I’m in the middle on that one.)
Different strokes for different folks.[/quote]
Well, you’re situation wouldn’t be as dire as others because I believe you have two incomes, and frankly if I recall you’re a software geek ,so employment won’t be *that* much of an issue for you me thinks. And there’s nothing like have no house debt at all.
The other thing is that if you’re going to do a refi, you might also consider getting a HELOC setup and not used. Shouldn’t cost you anything, and if the crap hits the fan, you have something.
sdrealtor
June 20, 2012 @
12:41 PM
I agree with FLU. There is no I agree with FLU. There is no more comfortable pillow to rest your head on every night than an unused open HELOC.
(former)FormerSanDiegan
June 19, 2012 @
10:22 AM
where is the 1-year ARM ? where is the 1-year ARM ?
Coronita
June 19, 2012 @
5:50 PM
I’m in a 15 year product I’m in a 15 year product right now at 2.875… And heloc’ed the hell out of the remaining just in case at prime minus .25…. (so currently, it’s 3%)
ocrenter
June 20, 2012 @
7:30 AM
flu wrote:I’m in a 15 year [quote=flu]I’m in a 15 year product right now at 2.875… And heloc’ed the hell out of the remaining just in case at prime minus .25…. (so currently, it’s 3%)[/quote]
Very nice.
I’m in jumbo territory, options can be a bit limited. refi process right now from 4.5 to 3.75 30 years.
The low interest rate is essentially a roundabout way for the government to reduce the overall cost of the mortgage deduction. Folks are refinancing at record numbers, at the same time, they can’t deduct as much on their taxes. Especially higher income folks, the mortgage deduction is the biggest tax shelter per family. I wonder if the CBO or other entities ever put out numbers on this.
Coronita
June 20, 2012 @
7:53 AM
ocrenter wrote:flu wrote:I’m [quote=ocrenter][quote=flu]I’m in a 15 year product right now at 2.875… And heloc’ed the hell out of the remaining just in case at prime minus .25…. (so currently, it’s 3%)[/quote]
Very nice.
I’m in jumbo territory, options can be a bit limited. refi process right now from 4.5 to 3.75 30 years.
The low interest rate is essentially a roundabout way for the government to reduce the overall cost of the mortgage deduction. Folks are refinancing at record numbers, at the same time, they can’t deduct as much on their taxes. Especially higher income folks, the mortgage deduction is the biggest tax shelter per family. I wonder if the CBO or other entities ever put out numbers on this.[/quote]
Folks in higher income brackets end up getting hit with AMT.
ocrenter
June 20, 2012 @
8:35 AM
flu wrote:ocrenter wrote:flu [quote=flu][quote=ocrenter][quote=flu]I’m in a 15 year product right now at 2.875… And heloc’ed the hell out of the remaining just in case at prime minus .25…. (so currently, it’s 3%)[/quote]
Very nice.
I’m in jumbo territory, options can be a bit limited. refi process right now from 4.5 to 3.75 30 years.
The low interest rate is essentially a roundabout way for the government to reduce the overall cost of the mortgage deduction. Folks are refinancing at record numbers, at the same time, they can’t deduct as much on their taxes. Especially higher income folks, the mortgage deduction is the biggest tax shelter per family. I wonder if the CBO or other entities ever put out numbers on this.[/quote]
Folks in higher income brackets end up getting hit with AMT.[/quote]
Well aware, AMT is a very good friend of mine, we say our hello yearly.
There should still be some loss in deduction before hitting AMT , no?
Cube
June 19, 2012 @
10:28 PM
Checked “Rent” above, but Checked “Rent” above, but we’re planning to buy (if we can find a house).
I’m hoping for 75% first 30yr-fixed, and 5-10% second 15yr-fixed. The plan would be to pay down the second at an accelerated rate in order to end up with lower payments on the first (without have to refi).
I keep thinking I’ve seen the bottom on rates and that we’re going to miss out and have higher rates when we finally buy (and into the future), but as long as FLU keeps pulling the trigger, I guess I can be confindent that rates will plumb new lows.
I ran some numbers on a 7/1 ARM, and I think they look pretty good for about the 7-9 year timeframe. After that, I conservatively assume they go bad, and fast.
svelte
June 20, 2012 @
11:40 PM
Well we lived with an ultra Well we lived with an ultra small mortgage for a couple of years – taxes started eating us alive. Decided no more.
Bought a bigger house and went back to a 30 yr mortgage. Could easily make payments on a 15 yr loan, but like the security of keeping payments low should we lose our jobs.
matt-waiting
June 21, 2012 @
10:20 AM
I debated going the 15 year I debated going the 15 year route, but at 3.5% fixed why not push your loan out as long as you can. If inflation is more than 3.5% in the years to come, 30 years of free money sounds good to me.
an
June 21, 2012 @
10:46 AM
matt-waiting wrote:I debated [quote=matt-waiting]I debated going the 15 year route, but at 3.5% fixed why not push your loan out as long as you can. If inflation is more than 3.5% in the years to come, 30 years of free money sounds good to me.[/quote]
That’s my thought exactly. Also, that 3.5-4% is before tax deduction. With tax deduction, it’s like paying 2.5-3%. That’s dirt cheap. It wasn’t long ago (before all of the economic melt down) that I was able to get online saving account with 5-6%. Even if we return to that and not the historical average of 7-8%, that’s still free money.
Coronita
June 21, 2012 @
10:49 AM
matt-waiting wrote:I debated [quote=matt-waiting]I debated going the 15 year route, but at 3.5% fixed why not push your loan out as long as you can. If inflation is more than 3.5% in the years to come, 30 years of free money sounds good to me.[/quote]
Me personally, I’d like to be debt free before I start wearing depend diapers. The quicker I can pay off my primary, the quicker I can buy a porsche before I’m too old and drive a frickin Oldsmobile.
June 19, 2012 @ 7:40 AM
…because once again, i feel
…because once again, i feel like being nosey….
June 19, 2012 @ 8:00 AM
And getting ready to refi but
And getting ready to refi but debating the 15/30 year for that.
June 19, 2012 @ 10:15 AM
Currently 3 years into a 15
Currently 3 years into a 15 year fixed. But if we keep up extra principal payments we’ll be paid off in just over 2 years.
Even so – considering refinancing just to ensure we have super low payments if I get laid off. Need to decide quickly since my employer seems to be getting ready to hit us hard.
June 19, 2012 @ 5:08 PM
UCGal wrote:Currently 3 years
[quote=UCGal]Currently 3 years into a 15 year fixed. But if we keep up extra principal payments we’ll be paid off in just over 2 years.
Even so – considering refinancing just to ensure we have super low payments if I get laid off. Need to decide quickly since my employer seems to be getting ready to hit us hard.[/quote]
Once again, you’re to be commended for your discipline, UCGal. You’ve made some very smart moves WRT your house.
Best of luck with your work situation. Sorry to hear they are thinking about more layoffs. 🙁
June 20, 2012 @ 8:37 AM
UCGal wrote:Currently 3 years
[quote=UCGal]Currently 3 years into a 15 year fixed. But if we keep up extra principal payments we’ll be paid off in just over 2 years.
Even so – considering refinancing just to ensure we have super low payments if I get laid off. Need to decide quickly since my employer seems to be getting ready to hit us hard.[/quote]
Given the uncertainty of your employment, have you considered holding on to those extra principle payments as an extra cushion? I’m guessing your current interest rate is pretty decent (even better if you refi now), and there are some pretty decent stocks yielding ~3% now, so your net cost would be pretty damn low for that extra flexibility.
June 20, 2012 @ 9:14 AM
SK in CV wrote:UCGal
[quote=SK in CV][quote=UCGal]Currently 3 years into a 15 year fixed. But if we keep up extra principal payments we’ll be paid off in just over 2 years.
Even so – considering refinancing just to ensure we have super low payments if I get laid off. Need to decide quickly since my employer seems to be getting ready to hit us hard.[/quote]
Given the uncertainty of your employment, have you considered holding on to those extra principle payments as an extra cushion? I’m guessing your current interest rate is pretty decent (even better if you refi now), and there are some pretty decent stocks yielding ~3% now, so your net cost would be pretty damn low for that extra flexibility.[/quote]
I didn’t start paying extra on the mortgage till we had a very nice emergency fund built up. I’m good.
I understand the logic of leverage being good. Using other folks money to make money. I get it rationally. For me, the emotional aspect of retiring debt helps me sleep at night… Normally I’m very rational about about stuff – especially money. But not about debt. I really want to be debt free. It’s kind of like risk tolerance for one’s asset allocation… folks have different levels of comfort. Some are fine with very risky, potentially more profitable allocations, others are more comfortable with lower yield, less risky investments. (I’m in the middle on that one.)
Different strokes for different folks.
June 20, 2012 @ 11:00 AM
UCGal wrote:SK in CV
[quote=UCGal][quote=SK in CV][quote=UCGal]Currently 3 years into a 15 year fixed. But if we keep up extra principal payments we’ll be paid off in just over 2 years.
Even so – considering refinancing just to ensure we have super low payments if I get laid off. Need to decide quickly since my employer seems to be getting ready to hit us hard.[/quote]
Given the uncertainty of your employment, have you considered holding on to those extra principle payments as an extra cushion? I’m guessing your current interest rate is pretty decent (even better if you refi now), and there are some pretty decent stocks yielding ~3% now, so your net cost would be pretty damn low for that extra flexibility.[/quote]
I didn’t start paying extra on the mortgage till we had a very nice emergency fund built up. I’m good.
I understand the logic of leverage being good. Using other folks money to make money. I get it rationally. For me, the emotional aspect of retiring debt helps me sleep at night… Normally I’m very rational about about stuff – especially money. But not about debt. I really want to be debt free. It’s kind of like risk tolerance for one’s asset allocation… folks have different levels of comfort. Some are fine with very risky, potentially more profitable allocations, others are more comfortable with lower yield, less risky investments. (I’m in the middle on that one.)
Different strokes for different folks.[/quote]
Well, you’re situation wouldn’t be as dire as others because I believe you have two incomes, and frankly if I recall you’re a software geek ,so employment won’t be *that* much of an issue for you me thinks. And there’s nothing like have no house debt at all.
The other thing is that if you’re going to do a refi, you might also consider getting a HELOC setup and not used. Shouldn’t cost you anything, and if the crap hits the fan, you have something.
June 20, 2012 @ 12:41 PM
I agree with FLU. There is no
I agree with FLU. There is no more comfortable pillow to rest your head on every night than an unused open HELOC.
June 19, 2012 @ 10:22 AM
where is the 1-year ARM ?
where is the 1-year ARM ?
June 19, 2012 @ 5:50 PM
I’m in a 15 year product
I’m in a 15 year product right now at 2.875… And heloc’ed the hell out of the remaining just in case at prime minus .25…. (so currently, it’s 3%)
June 20, 2012 @ 7:30 AM
flu wrote:I’m in a 15 year
[quote=flu]I’m in a 15 year product right now at 2.875… And heloc’ed the hell out of the remaining just in case at prime minus .25…. (so currently, it’s 3%)[/quote]
Very nice.
I’m in jumbo territory, options can be a bit limited. refi process right now from 4.5 to 3.75 30 years.
The low interest rate is essentially a roundabout way for the government to reduce the overall cost of the mortgage deduction. Folks are refinancing at record numbers, at the same time, they can’t deduct as much on their taxes. Especially higher income folks, the mortgage deduction is the biggest tax shelter per family. I wonder if the CBO or other entities ever put out numbers on this.
June 20, 2012 @ 7:53 AM
ocrenter wrote:flu wrote:I’m
[quote=ocrenter][quote=flu]I’m in a 15 year product right now at 2.875… And heloc’ed the hell out of the remaining just in case at prime minus .25…. (so currently, it’s 3%)[/quote]
Very nice.
I’m in jumbo territory, options can be a bit limited. refi process right now from 4.5 to 3.75 30 years.
The low interest rate is essentially a roundabout way for the government to reduce the overall cost of the mortgage deduction. Folks are refinancing at record numbers, at the same time, they can’t deduct as much on their taxes. Especially higher income folks, the mortgage deduction is the biggest tax shelter per family. I wonder if the CBO or other entities ever put out numbers on this.[/quote]
Folks in higher income brackets end up getting hit with AMT.
June 20, 2012 @ 8:35 AM
flu wrote:ocrenter wrote:flu
[quote=flu][quote=ocrenter][quote=flu]I’m in a 15 year product right now at 2.875… And heloc’ed the hell out of the remaining just in case at prime minus .25…. (so currently, it’s 3%)[/quote]
Very nice.
I’m in jumbo territory, options can be a bit limited. refi process right now from 4.5 to 3.75 30 years.
The low interest rate is essentially a roundabout way for the government to reduce the overall cost of the mortgage deduction. Folks are refinancing at record numbers, at the same time, they can’t deduct as much on their taxes. Especially higher income folks, the mortgage deduction is the biggest tax shelter per family. I wonder if the CBO or other entities ever put out numbers on this.[/quote]
Folks in higher income brackets end up getting hit with AMT.[/quote]
Well aware, AMT is a very good friend of mine, we say our hello yearly.
There should still be some loss in deduction before hitting AMT , no?
June 19, 2012 @ 10:28 PM
Checked “Rent” above, but
Checked “Rent” above, but we’re planning to buy (if we can find a house).
I’m hoping for 75% first 30yr-fixed, and 5-10% second 15yr-fixed. The plan would be to pay down the second at an accelerated rate in order to end up with lower payments on the first (without have to refi).
I keep thinking I’ve seen the bottom on rates and that we’re going to miss out and have higher rates when we finally buy (and into the future), but as long as FLU keeps pulling the trigger, I guess I can be confindent that rates will plumb new lows.
I ran some numbers on a 7/1 ARM, and I think they look pretty good for about the 7-9 year timeframe. After that, I conservatively assume they go bad, and fast.
June 20, 2012 @ 11:40 PM
Well we lived with an ultra
Well we lived with an ultra small mortgage for a couple of years – taxes started eating us alive. Decided no more.
Bought a bigger house and went back to a 30 yr mortgage. Could easily make payments on a 15 yr loan, but like the security of keeping payments low should we lose our jobs.
June 21, 2012 @ 10:20 AM
I debated going the 15 year
I debated going the 15 year route, but at 3.5% fixed why not push your loan out as long as you can. If inflation is more than 3.5% in the years to come, 30 years of free money sounds good to me.
June 21, 2012 @ 10:46 AM
matt-waiting wrote:I debated
[quote=matt-waiting]I debated going the 15 year route, but at 3.5% fixed why not push your loan out as long as you can. If inflation is more than 3.5% in the years to come, 30 years of free money sounds good to me.[/quote]
That’s my thought exactly. Also, that 3.5-4% is before tax deduction. With tax deduction, it’s like paying 2.5-3%. That’s dirt cheap. It wasn’t long ago (before all of the economic melt down) that I was able to get online saving account with 5-6%. Even if we return to that and not the historical average of 7-8%, that’s still free money.
June 21, 2012 @ 10:49 AM
matt-waiting wrote:I debated
[quote=matt-waiting]I debated going the 15 year route, but at 3.5% fixed why not push your loan out as long as you can. If inflation is more than 3.5% in the years to come, 30 years of free money sounds good to me.[/quote]
Me personally, I’d like to be debt free before I start wearing depend diapers. The quicker I can pay off my primary, the quicker I can buy a porsche before I’m too old and drive a frickin Oldsmobile.