|
|
Post by jeff84 on Dec 1, 2016 6:47:57 GMT -5
I will be needing a car in 3 years. that is when my DL will be restored. but other than that I really don't know what to do with it, and don't want to squander it.
I could pay down my mortgage, invest it in a retirement account, ,ake home improvements, go to school, try my hand at day trading, buy 30,000 scratch offs. I just don't know
any advice.
if it helps I'm 32
owe 102,000 on the house and still have 35 years on the loan
I recently lost a job and used pretty much all of my 401k getting by
have a new shitty job that doesn't pay near enough
and cant drive wich I think is my biggest roadblock to more gainful employment, that and the lack of an education
|
|
|
|
Post by eclark5483 on Dec 1, 2016 7:11:38 GMT -5
Easy. Buy a cheapy car.. say one for around $1500-2000. Refi your home. Rates are at a historic low, you'd be crazy not to. Refi using the money you have as an additional down. Reduce your house payments big time.
I took a 30 year on my second home, came in with $25,000 down. My payments are $209 a month before property taxes.
|
|
|
|
Post by eclark5483 on Dec 1, 2016 7:23:37 GMT -5
I'm actually in the process of selling my first home. The one I live in now is a downsize. My old home was a 2 story, about 1400 square feet with a full basement and a 2 car garage. My new home is 672 square feet, full basement, 1 car garage.
My wife thought I was crazy when I suggested it. It was only a 2 bedroom and small as hell. But I had a contractor come in and completely finish the basement. Added another bed room, an office, a laundry room, a family game room and a storage area for groceries and supplies. So now instead of having only 672 square feet of space, I effectively doubled it. And, since it's super insulated, I have very low utilities. My gas bill only runs me $24 a month through the cold winter season.
I'm much much happier paying just a bit over $200 on a home for 30 years then paying over $600 for 30. Double payments will have this home paid off in only a few years. Then I'll pass it off to my kids with Autism so they will always have a home to live in when my wife and I are dead and in our graves.
Considering all the money I am saving, downsizing and refinancing were the best decisions I ever made. Gotta get a little creative with the storage, but it works. The garage is 100% scooters!!
|
|
|
|
Post by jeff84 on Dec 1, 2016 7:28:10 GMT -5
I will have to look into it, but I have really horrible credit. I also modified my mortgage like a year and a half ago (hence the 35 year term, they let me tack on 10 years to get a lower payment. my apr is 4.25) I also made a late payment in that time. the terms say I cant do it at all in the first 6 months and if I do it within 12 they wont allow a refinance. the one I was late on was payment 12 of the modification period.
you think me waving a good chunk of change will change their mind?
|
|
|
|
Post by jeff84 on Dec 1, 2016 7:33:07 GMT -5
wait, let me get this straight.
you are saying refi, put a large payment down on a second smaller house, and then sell the house I live in now?
|
|
|
|
Post by eclark5483 on Dec 1, 2016 8:37:17 GMT -5
No, I am saying refi and put a large chunk down on the home you have now. But if you recently did a refi, then that's out of the question. Just putting the money towards the mortgage is good and all, but a wiser choice is doing a refi on top of the additional down. You'd save THOUSANDS in just interest, which translates to more expendable income in the coming years for you. Something I personally would rather have then just having $30k... Think about it, you stick $30k in a bank with the typical interest rate, you make very very little. You use it on a refi and additional down, not only do you eventually have that $30k come back to you, you have your home paid down much sooner and will have more money for scoot parts.  A big mistake would be in investing in a car. If it's gonna be 3 years till you have a licence anyway, then that's 3 years you can spend making a cheap car run very well while putting your money to better use. I normally wouldn't give that advice to someone, but if income and budget are limited, then you don't let a car break the bank... I wouldn't... but I'd at least have a running one for when I can drive it. And I'd have no payments on it. This will only set you up for success when a better job option does present itself... and it will. |
|
|
|
Post by Cincikid on Dec 1, 2016 8:54:41 GMT -5
If you can pull it off education is always a sound investment. That is if it's something you love doing. I know a girl with a masters in fine arts, she now sales insurance because she got burnt out. She was good at it, but she didn't love it. By the way, I know of a great investment opportunity!!!  |
|
|
|
Post by 90GTVert on Dec 1, 2016 8:56:24 GMT -5
I was gonna say buy 30 nice two-strokes off of craigslist, but the above are much better ideas.  |
|
|
|
Post by jeff84 on Dec 1, 2016 9:46:00 GMT -5
what if I could manage 60 nice two strokes off craigslist and then sell them for 1000 each  |
|
|
|
Post by jeff84 on Dec 1, 2016 9:50:18 GMT -5
No, I am saying refi and put a large chunk down on the home you have now. But if you recently did a refi, then that's out of the question. Just putting the money towards the mortgage is good and all, but a wiser choice is doing a refi on top of the additional down. You'd save THOUSANDS in just interest, which translates to more expendable income in the coming years for you. Something I personally would rather have then just having $30k... Think about it, you stick $30k in a bank with the typical interest rate, you make very very little. You use it on a refi and additional down, not only do you eventually have that $30k come back to you, you have your home paid down much sooner and will have more money for scoot parts. A big mistake would be in investing in a car. If it's gonna be 3 years till you have a licence anyway, then that's 3 years you can spend making a cheap car run very well while putting your money to better use. I normally wouldn't give that advice to someone, but if income and budget are limited, then you don't let a car break the bank... I wouldn't... but I'd at least have a running one for when I can drive it. And I'd have no payments on it. This will only set you up for success when a better job option does present itself... and it will. don't worry I don't plan on spending more than 3grand on a car. and then another 3 grand on a truck. that is basically as far as I made it on the getting the DL back. or I may just buy one truck. its always nice to have a plan b though in case one breaks down. I couldn't imagine only owning one scooter, so why would it be ok to have only one 4 wheeler |
|
|
|
Post by jeff84 on Dec 1, 2016 10:02:38 GMT -5
No, I am saying refi and put a large chunk down on the home you have now. But if you recently did a refi, then that's out of the question. Just putting the money towards the mortgage is good and all, but a wiser choice is doing a refi on top of the additional down. You'd save THOUSANDS in just interest, which translates to more expendable income in the coming years for you. Something I personally would rather have then just having $30k... Think about it, you stick $30k in a bank with the typical interest rate, you make very very little. You use it on a refi and additional down, not only do you eventually have that $30k come back to you, you have your home paid down much sooner and will have more money for scoot parts. A big mistake would be in investing in a car. If it's gonna be 3 years till you have a licence anyway, then that's 3 years you can spend making a cheap car run very well while putting your money to better use. I normally wouldn't give that advice to someone, but if income and budget are limited, then you don't let a car break the bank... I wouldn't... but I'd at least have a running one for when I can drive it. And I'd have no payments on it. This will only set you up for success when a better job option does present itself... and it will. my mortgage payment is at 650 now. if I could dramatically reduce that, then I believe that would be the best thing to do. that would make a lower paying job acceptable |
|
|
|
Post by tortoise2 on Dec 1, 2016 10:42:07 GMT -5
|
|
|
|
Post by jeff84 on Dec 1, 2016 10:57:50 GMT -5
dave ramesy=don't borrow money. put any and all money available into growth stock mutual funds or real estate
|
|
liftit
Scoot Enthusiast
Posts: 264
|
Post by liftit on Dec 1, 2016 11:10:54 GMT -5
The personal finance subreddit has a lot of great advice: www.reddit.com/r/personalfinance/As someone that daily deals with mortgage lending and mortgage law, I can say with pretty decent certainty that if you just modified your mortgage loan and they tacked on the extra years, they probably also recapitalized your missed payments and interest. Most lenders aren't going to give you a refi because you're probably under water on the home. Putting money towards it may help you get to the point where you can refi or sell, but there are trade-offs. So instead, focus on other debts. The top two things that a financial adviser will tell you is to try to put 6 months worth of bills (mortgage, insurance, cell phone, utilities, etc) in a savings account and don't touch it. That's for emergencies only (you get laid off, need to go on disability, emergency surgery). The other thing to do is pay off any high interest debt. If you have any credit cards or personal loans with a higher than 10% interest, pay it off. When you pay off the debt and have your 6 month stockpile, then start focusing on other things. Put the money you want for a car and truck in something like a Vanguard index fund and make some money off of it until you can drive again. Vanguard is a nice company because their fees are ridiculously low and they regularly outperform the big fancy mutual funds managed by people making 9 figures a year. On average, they get around 8.5% on return a year. Put in 6 grand, wait 3 years for your license to come back, and you'd have about 7,500 sitting there. MY own opinion is to clear up other debts and allow what income you have to go towards saving and bettering your life. It may make that mortgage payment more manageable for you. It also give you a bit more financial freedom to look for that better job or get the cert that lets you get that better job. |
|
liftit
Scoot Enthusiast
Posts: 264
|
Post by liftit on Dec 1, 2016 11:12:24 GMT -5
Dave Ramsey works for some people. Others, not so much.
|
|
