You should check mortgage rates if you haven’t recently

Discussion in 'The Okie Corral' started by catman71, Jul 30, 2020.

  1. V Gehts

    V Gehts

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    I dunno about some of you, but...after I paid off my house in the Spring of 04, I had 1 kid start college that Fall. And then another started college 2 years after that.
    So even tho no mortgage payments were no longer being paid, college tuition costs took its place.
    Two kids in college at the same time, and all the costs that go with it.........I’ll take a mortgage payment instead any day.
    Then of course I get blindsided when the US economy takes a big sh#t in ‘08,....and find myself outta work for 18 straight months........
    .............the bills don’t stop,...and life goes on.....
     
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  2. HonkeyFries

    HonkeyFries

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    I was approved for 2.25% the other day.

    My mortgage will be over $300 a month cheaper than my apartment. A week ago I wasn’t even looking at houses.
     
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  3. stk10767

    stk10767

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    Fake news. No one on GT has a mortgage.
     
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  4. Caver 60

    Caver 60

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    Our modern economy seems to praise living well beyond your means. It used to be called 'keeping up with the Jones'. There's no sense in that IMO.

    Just because you (in theory) you can afford payments on a 3/4 million dollar house. Plus a couple new vehicles, doesn't mean you should. Debt makes you a slave to the finance companies. Almost everybody starting out in life does have to have some well managed debt. I certainly did when I was starting out.

    But like Dave Ramsey says, your goal should be to get out of debt ASAP. And I'm not affiliated with him. As I said before, I never even heard of him until a few years ago.

    But I've followed his basic advice (as taught to me by my parents) since way back when. Look where I'm at today. This on (what many would consider) a modest income. Best year I ever had, I was making about 80 grand a year. My wife and I have raised our children the same way. As I said in another post, one is already worth over a million and he's only in his 40's; and totally debt free.

    Why buy a 3/4 million dollar house starting out, when you can live comfortably in a 300,000 dollar house? And why take 30 years to pay it off, when you can do it in 10 years or so. The savings are tremendous, leaving money for better investments. And don't give me that 'tax advantage' stuff.

    Live within your means folks.
     
  5. FCastle88

    FCastle88

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    Situations vary. In high cost of living cities there are no $300K houses. In small towns $300K houses are probably the "rich" neighborhood. Dave Ramsey says he worked his way though college so anyone can do it. After adjusting for inflation the cost of a college degree has gone up well over 300% in the last 40 years. For most people today a degree just isn't possible without debt. Dave Ramsey's method is mostly common sense financial principals for people who make a good amount of money but are terrible at finances. For people who are good with finances it's best to not take everything he says as gospel.
     
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  6. Caver 60

    Caver 60

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    Point is, don't be taking on unnecessary debt, just to keep up with the Jones, where ever you live.

    And on another subject; these ad's for 'Don't let the credit card companies fool you into thinking you have to pay your debt off' should be illegal IMO. Really jacks my jaws. But it seems to be the modern way of thinking. I guess I'm just an old foggy. I was raised to be responsible.
     
  7. Aurora

    Aurora

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    This guy's post deserves a second reading. I struggle against many ideas in my professional life which are woefully out of date.

    Everything is based on situation and context. You have to carefully consider that before risking your money and well being on an idea designed to work in a world that doesn't exist anymore.

    V.
     
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  8. ray9898

    ray9898

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    Jeez.....you will take this advice even if it has to be force-fed to you by being repeated 4 times.

    He is successful damn it....someone clap for him or something.
     
    Last edited: Aug 4, 2020
  9. Cmacc

    Cmacc

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    College 101...

    Apply for all grants and scholarships available.

    First two years work part time while attending community college and live with parents. Save 75%+ of wages.

    Next attend nearby state university while working part time. Don’t party and spend on frivolous things. Share rent of apartment w like minded serious students.

    Get a degree in a field that pays well and has future potential.

    A person should be able to graduate with little or no debt if they are disciplined and focused.

    Thread topic- We have a mortgage at 3%.
     
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  10. Gonzoso

    Gonzoso

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    That's the cheapest way to do it but not necessarily possible to come out debt free.

    Tuition is going to be 10-15k a year at a state college, housing is like 9k a year, transportation and food might be 5k a year, books 1k a year. So you're looking at a base amount of 30k a year before any other expenses.

    If you're working serious science based classes you don't have time during the week to work, you need to study. You might be able to get a weekend job so you might make $7200 dollars a year working weekends. Then if you work the summer you would just need to make $35.62 an hour if you can live completely for free in the summer and buy no beer, don't eat out much, etc.

    I worked multiple jobs at community college, and worked weekends and all summer at my four year school. I came out with $34k in debt and a Biology degree focusing on environmental science. Well worth it but it's expensive and hard if you don't come from money.
     
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  11. Valmet

    Valmet M62/76 Silver Member

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    Hopefully they stay that low for a bit- I’m relocating in the Spring. Getting out of the city.
     
  12. ray9898

    ray9898

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    Education costs are not usually high in GA but I guarantee you cannot work part-time and come out with a 4y degree with little or no debt. You would be challenged to even do it a community college still living at home. The last two years of school at a state university would be $25k+ a year and that would not include all food or living expenses.
     
  13. Bow Commander

    Bow Commander

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    Just finished a cash out refi on our home. Dropped the rate 1%, pulled out 18k equity to do a kitchen remodel and my payment dropped just slightly. Woohoo!
     
  14. MurrayNevada

    MurrayNevada USMC (MOS 0369) (RVN 69-70)

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    Please help me, I'm old and confused. I thought Glock Talkers paid all cash for their houses and vehicles. No mortgages or car loans.
     
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  15. FCastle88

    FCastle88

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    Sure it's possible for some people under certain circumstances. There's a lot of IFs there however.

    Maybe that plan works IF living at home for free while going to community college is an option, IF there's a community college close to home that has the courses you need and they transfer to the 4 year school you're going to go to. Community college tuition, books, transportation costs, etc., are still likely going to cost a lot more than 25% of what a student can make working part time. So saving 75%+ of wages just isn't going to happen for most people.'
    '
    Then at the 4 year school you are going to have to actually do schoolwork/study/internships as was already pointed out. Doesn't leave a whole lot of time to rake in the money working part time... Plus for some degrees you're not paying for the education so much as the connections/networking/school's reputation, it may pay off more in the long run to spend your free time socializing, taking advantage of the school's facilities, etc.

    Student loans may well be worth it for a degree with good income prospects. Taking out a mortgage even if you could somehow afford to buy outright might be the better choice under some circumstances. Taking out a car loan or buying a new car instead of the often recommended 2-3 year old car(especially when buying a Japanese brand) may actually be the better deal. My point is many things aren't the same as they were 20+ years ago. The old financial "rules" don't always apply.
     
  16. Rawah

    Rawah

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    I’m noticing more and more for sale signs around here, especially lately. There are a number of people around here who over leveraged themselves buying multiple homes to rent out and ride the boom.
     
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  17. Mathemagician1

    Mathemagician1

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    This is great advice for a world that no longer exists, unfortunately, unless you max out the grants and scholarships which isn't always possible. Even then, it is a stretch. The cost of college has gone up far faster than the income from a part time job.