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Extra $: pay down mortgage or wait for this dip?
Posted on 8/5/24 at 8:06 am
Posted on 8/5/24 at 8:06 am
Got lucky was trying to pay principle down on mortgage so sold roughly 100k last week now into this. Is it more prudent to pay debt or buy shares after initial crash?
4
Posted on 8/5/24 at 8:11 am to fareplay
If we had a crystal ball, wish we could tell you.
Too many unknown variables of your financial situation to help you with this question.
Too many unknown variables of your financial situation to help you with this question.
Posted on 8/5/24 at 8:13 am to fareplay
In this current situation, I'd put that cash in an interest bearing savings account and wait for the market correction to invest that $100K and easily double it! Then harvest 100K and put it on your mortgage and keep the other half invested.
Posted on 8/5/24 at 8:28 am to fareplay
It depends on the interest rate on your mortgage. If 3 or under, I would just keep paying it as scheduled. If 6 or greater, I would make extra principal payments. The middle ground is where it gets complicated. I still think that high yield savings and/or CDs would be smarter than reducing a tax advantaged debt service, particularly with a low rate.
Obviously, long-term equities are going to be better, so you could wait to buy back then. In the meantime, you will remain more liquid with cash equivalents and you can get a passable return in savings/CDs.
IMHO, anyway.
Obviously, long-term equities are going to be better, so you could wait to buy back then. In the meantime, you will remain more liquid with cash equivalents and you can get a passable return in savings/CDs.
IMHO, anyway.
Posted on 8/5/24 at 11:01 am to Ace Midnight
6.625 we’re trying to refinance but want to put 10% more down before we do
Posted on 8/5/24 at 11:05 am to fareplay
There are rumors of emergency rate cuts, even if you wanted to continue with the refi you may want to wait to see if the fed announces anything today or in the next few days. Would change the math.
Posted on 8/5/24 at 11:06 am to RebelExpress38
Yeah I told myself we will wait till end of sept at the earliest
Posted on 8/5/24 at 11:13 am to fareplay
You're still in that 7/5 ARM. I would just stay liquid until then. CDs, high yield savings. Cash is king in this environment
Now if rates get into the 4s before then...
Now if rates get into the 4s before then...
Posted on 8/5/24 at 12:02 pm to Ace Midnight
I have 2, 6/1 at 5% and 7/6 at 6.625. Trying to finance the latter
Posted on 8/5/24 at 12:23 pm to fareplay
Krikey, I forgot about the other one.
You're in 2 ARMs? At the same time? And you're already jonesing to refi the newer one?
I know you go into that one with someone els paying the closing, but I just wouldn't rush more borrowing right now. Too volatile. You want to refi that one into a fixed and under 5, IMHO.
Stack cash. You really can't lose stacking cash right now.
You're in 2 ARMs? At the same time? And you're already jonesing to refi the newer one?
I know you go into that one with someone els paying the closing, but I just wouldn't rush more borrowing right now. Too volatile. You want to refi that one into a fixed and under 5, IMHO.
Stack cash. You really can't lose stacking cash right now.
Posted on 8/5/24 at 1:14 pm to Ace Midnight
The first ARM is a cheaper home and mortgage is offfset by the renter. The one we live in is the sucker we want to pay off and I saw that with closing estimated to be 6-8k it pays off in a year if we can get it to 6 or below
Posted on 8/6/24 at 10:47 am to Ace Midnight
The physician Facebook group is now getting low 5, I think it’s time
Posted on 8/6/24 at 11:20 am to fareplay
What is your mortgage rate? That is always key. If you have close to 7% or higher then I would definitely be making extra payments.
Posted on 8/6/24 at 12:03 pm to fareplay
quote:
The physician Facebook group is now getting low 5, I think it’s time
Yeah, I would be much more excited for a refi from mid/upper 6 to low 5. That makes sense whether you refinance again in 6 or 7 years or hold it until term.
Obviously it is a new set of math, but you don't have to putt putt down. A drop of a point and 3/8, point and a half is a big deal with your principal balance.
Are you going to keep the same term or extend it to a new 30? I would keep the same end date, if it was me.
Posted on 8/6/24 at 1:08 pm to Ace Midnight
Well we paid off 10% more so probably will do the shorter time frame since it doesnt really change the payment number
Posted on 8/6/24 at 1:09 pm to lsu13lsu
6.625 arm 7/6
Posted on 8/6/24 at 1:55 pm to fareplay
Not a bad move.
You now have a guaranteed 6.625 return.
You now have a guaranteed 6.625 return.
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