What is your interest rate?

That’s crazy!

 

Agreed, had 2.25 30 yr fixed on our 2021 house, 4.65 30 yr fixed on our current 2022 home (moved cause wife hated IL). We are comfortable with our $500k home, but ya get jelly knowing my neighbor next door has 1200 more sq ft and pays probably half what we pay and his 2020 rate. Is what it is. My point was I have no idea how people are affording life at these rates and prices. We have a new section of our hood, 600k+ homes all built last year so 6% rates, all with brand new tahoes and sierras out front, so $6k right there and these are stay at home mom's and roof salesman with 2 kids homes. We are two NPs and baffled with their lifestyle.

 

My gf works at a law firm doing property stuff and she says a lot of ppl refinance every few years to get the equity to pay off there credit cards at some point the equity has to stop then there beyond fucked. We built 2 years ago and I know it's not much but borrowing that 280k I don't think I slept for weeks. I have got a few promotions in the past 2 years and we are comfortable now. But my old man always told me if you can't afford something you don't buy it Ryan.

 

I keep hearing that, but as I search, and talk to dealers, that doesn't seem to be the case. Even contacted that dude that posted in the 4gen forums with 10s of tacomas at some sort of clearance house setup, and he had no trailhunters. I have a reason for buying this particular model- everything on it, I would have put on it anyway, and the price works out in the end. All of them are expensive. I could probably wait another year and watch the prices go down a but on the high end models, but again- I'll be dumping 3K for the dealer to do a clutch replacement on my 2004 cause I don't have the time to do it myself.

 

2021 was a lot of interest rate changes ago. 5.5% was the very best I could find at Navy Federal, but I would have to move some accounts over there to qualify. I have history with USAA and had my last Tacoma loan with them. (20 years ago.)

 

Definitely, brutal.

What helped us is...not-too-expensive property taxes.

We refinanced without escrow and save to pay our annual property taxes.

We went from a 30 year mortgage to a 15 year with pretty much the same target time-frame payoff from the original loan.

2 years left on my truck and 12 years remaining on the mortgage.

Gotta be in a good financial position because my second retirement is just around the corner; first was retirement from military.

 

Yup, the Fed hadn't raised rates at that time...the market was definitely quiet.

I've been with USAA for 20+ years too.

Although I got my vehicle loan from USAA, we got our Mortgage Refinance from local Credit Union.

 

I'm in a similar place as you- Retired W4 with 30 years made a nice fixed income that pays for the house mortgage at 2%. We've been paying a 30 year mortage at a rate that pays off in 10 years. Haven't had a car payment in 15 years. I'll shift some of that fat mortgage payment over to pay off a 60 month car loan at 6% in 24 months. All of that outside the current job pay. I wouldn't say I'm that close to the second retirement just yet- FAA says I have till 65. The tradeoff for being old, I guess.

 

I had 1.9 on my 2022
On the 2024 I just got the lowest I could get was 4.5

 

That’s damn good, may I ask through who and what term?

 

I just noticed this calculator.

I estimated under $2K for interest...but this is a better dollar number!

 

it is thru Florida West Coast CU. Their rate is 5.5 but if you open a new account with direct deposit they give you 1% off so I was able to get the 4.5% that way. I did 60 months but I don’t think that matters

 

Thats crazy, i've never heard of them and its 4 around me, but im with Suncoast and they lowest they offered last time i checked was like 7%

 

Yeah, the good old days of interest. Keep in mind, in today's dollars, that $35K is $42K.

 

I'm down to $14K with 23 months to go.

Interest is about $23/month and gets lower as time goes by.

It would be a good idea to pay at least an additional $25 per month and save $300 per 12 months.

I've got other bills I'm working to payoff so I can budget $25/month for this until I can pay it off completely.


*****

 

If I may ask. How many days a month are you and the wife both at work?

 

She works 7 on, 7 off, I work 3 days a week or so. We were just very purposeful with our money and paid everything off before having our first and picked up some extra shifts here and there. I am also a disabled vet so that supplements my RN income, wife is an NP. I could run out tomorrow and take on easily $2k in car payments but we choose to use that towards kids 529 and her IRA I started, our savings and retirement and we chose a nanny over daycare for the first year. Since I self schedule we only overlap about 6-10 days a month were the Nanny is required if thats what your getting to, it is more than our mortgage, lol.

 

I got 5.59% through a credit union. I'm financing like $55K. I think I'm just going to try to pay it off in 2 years, I end up paying a total of like $3000 in interest over the life of the loan.

 

5.6%, I put it on my HELOC instead of paying 7.9% to Toyota Canada.

 

If you are also paying bills with interest, pay the minimum payment on all of them and the maximum you can on the one with the highest interest rate. That's how you'll save the most interest.

House is 6.1% (stuck in a variable rate)
Truck is 5.6%
Tractor is 0%

We're putting all the extra we can on house up to the yearly maximum we can, then any extra will go on the truck. I'm never putting any extra on the tractor.

If I could have a short term investment that yields more than 6.1%, I'd invest instead and use that investment to put on the mortgage when due for renewal in 2 years.

Finance teacher always said, put your money where the highest interest rate is regardless if it's a debt or investment. That's the best bang for the buck long term.