Search found 13 matches

by Payoffhouse
Wed May 17, 2017 11:22 pm
Forum: Investing - Help with Personal Investments
Topic: Help, pay off house or invest?
Replies: 34
Views: 2396

Re: Help, pay off house or invest?

1.House owe/ total balance @5.25% 15yrs left: $50 2.Car payments @3.00% 4yrs left: $15 If you itemize deductions, I would pay off the car in preference to the house, even if you can't refinance. The car loan is non-deductible, so the after-tax rate is almost as high. In addition, the car loan can b...
by Payoffhouse
Wed May 17, 2017 11:09 pm
Forum: Investing - Help with Personal Investments
Topic: Help, pay off house or invest?
Replies: 34
Views: 2396

Re: Help, pay off house or invest?

Why bulk spend on one thing all of a sudden? Why not immediately max out both you and your wife's IRAs for 2017 in a broad index fund if you feel a pressing need to invest? That's an easy, practical step that you would likely take this year anyway. Then see how you "feel." With the rest, ...
by Payoffhouse
Wed May 17, 2017 11:01 pm
Forum: Investing - Help with Personal Investments
Topic: Help, pay off house or invest?
Replies: 34
Views: 2396

Re: Help, pay off house or invest?

To your original question: Neither. Your car rate is NOT low. Refinance it at a credit union. If you're in an area that has DCU, they're below 2% for a refinance of a used car. Do this and you save money, even though I'd pay off the car. I'll run the math to see how much savings it will be per mont...
by Payoffhouse
Wed May 17, 2017 9:49 am
Forum: Investing - Help with Personal Investments
Topic: Help, pay off house or invest?
Replies: 34
Views: 2396

Re: Help, pay off house or invest?

I'm going to guess your multiplier is 2... this is based on assuming a 30k car loan. am I right?? It's like me saying my net worth is $7; figure out the real multiplier. you should have used real numbers. I wouldn't pay off the car... I wouldn't chase Apple stock right now. You're just seeing your ...
by Payoffhouse
Wed May 17, 2017 7:17 am
Forum: Investing - Help with Personal Investments
Topic: Help, pay off house or invest?
Replies: 34
Views: 2396

Re: Help, pay off house or invest?

Hi, My first post. Background info: all the amounts have been reduced and are proportional to each other. 1.House owe/ total balance @5.25% 15yrs left: $50 2.Car payments @3.00% 4yrs left: $15 2a.No other debt, all CC are paid in full at end of month. 3.401k/ IRA balance: $24 4.Checking/ savings ac...
by Payoffhouse
Tue May 16, 2017 9:47 pm
Forum: Investing - Help with Personal Investments
Topic: Help, pay off house or invest?
Replies: 34
Views: 2396

Re: Help, pay off house or invest?

Your main goal is to relax and get your sleep "now". Paying off the house is not going to let you get sleep, having money in the bank will let you sleep like a baby, at least for the next two months, after that all bets are off! :wink: Re-evaluate after your wife goes back to work, not be...
by Payoffhouse
Tue May 16, 2017 9:42 pm
Forum: Investing - Help with Personal Investments
Topic: Help, pay off house or invest?
Replies: 34
Views: 2396

Re: Help, pay off house or invest?

I vote for neither, at least for a couple months until after your baby is born and everything is going smoothly. 3. We both have adequate health insurance and more than 3-6 months in emergency funds. If you wanted to invest the $34 or part of it on a taxable account, what would you invest in? I wou...
by Payoffhouse
Tue May 16, 2017 9:36 pm
Forum: Investing - Help with Personal Investments
Topic: Help, pay off house or invest?
Replies: 34
Views: 2396

Re: Help, pay off house or invest?

I know you said that you might not be able to refinance due to your wife's credit score, but have you tried? If you rolled your balance into a new 15 year loan, you could probably lower your interest rate by about 2%, which adds up over 15 years (if you keep the mortgage through full term). That co...
by Payoffhouse
Tue May 16, 2017 9:26 pm
Forum: Investing - Help with Personal Investments
Topic: Help, pay off house or invest?
Replies: 34
Views: 2396

Re: Help, pay off house or invest?

1. Pay car off 2. Build emergency fund of 3-6 months expenses 3. Do nothing else until you determine that mom/baby are healthy (3 months after baby is born) 4. Fund a ROTH IRA/pay extra on the house whichever you prefer. 5. Find ways to increase your income. Regards, John 1. Really payoff car event...
by Payoffhouse
Tue May 16, 2017 7:28 pm
Forum: Investing - Help with Personal Investments
Topic: Help, pay off house or invest?
Replies: 34
Views: 2396

Re: Help, pay off house or invest?

I vote for neither, at least for a couple months until after your baby is born and everything is going smoothly. By nature, we are very risk tolerant. So I was thinking why not invest in the stock market (thinking of buying Apple stock and sp500 index fund) to help pay off house faster instead of h...
by Payoffhouse
Tue May 16, 2017 7:20 pm
Forum: Investing - Help with Personal Investments
Topic: Help, pay off house or invest?
Replies: 34
Views: 2396

Re: Help, pay off house or invest?

1. Pay car off 2. Build emergency fund of 3-6 months expenses 3. Do nothing else until you determine that mom/baby are healthy (3 months after baby is born) 4. Fund a ROTH IRA/pay extra on the house whichever you prefer. 5. Find ways to increase your income. Regards, John 1. Really payoff car event...
by Payoffhouse
Tue May 16, 2017 7:15 pm
Forum: Investing - Help with Personal Investments
Topic: Help, pay off house or invest?
Replies: 34
Views: 2396

Re: Help, pay off house or invest?

INVEST. In the last 15 years of your loan, you are substantially paying down the principal every month. Investing early will compound over the years and make that loan insignificant. the payment will not increase. I know I am in the minority here because most focus on the interest being paid. But o...
by Payoffhouse
Tue May 16, 2017 6:12 pm
Forum: Investing - Help with Personal Investments
Topic: Help, pay off house or invest?
Replies: 34
Views: 2396

Help, pay off house or invest?

Hi, My first post. Background info: all the amounts have been reduced and are proportional to each other. 1.House owe/ total balance @5.25% 15yrs left: $50 2.Car payments @3.00% 4yrs left: $15 2a.No other debt, all CC are paid in full at end of month. 3.401k/ IRA balance: $24 4.Checking/ savings acc...

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