Search found 364 matches

by Savvy
Thu Nov 16, 2023 9:18 pm
Forum: Personal Investments
Topic: Starting off My investment Journey ... Looking for Advice! (Young 20s)
Replies: 14
Views: 1685

Re: Starting off My investment Journey ... Looking for Advice! (Young 20s)

Congrats on getting off to a great start. You'll be shocked how well this sets you up in a decade or two.

Max your HSA, invest it, and don't touch it. Not only does it avoid fed and state taxes, it avoids FICA taxes too (better than a 401k).

https://www.madfientist.com/ultimate-re ... t-account/

I am a big proponent of doing the 401K pre-tax, since there are ways to convert it later at zero or low taxes.

https://www.gocurrycracker.com/never-pay-taxes-again/
by Savvy
Fri Oct 06, 2023 8:47 pm
Forum: Personal Finance (Not Investing)
Topic: Planning to do IVF - Cost and Tips
Replies: 66
Views: 9372

Re: Planning to do IVF - Cost and Tips

First, it's okay to be open with others. We found a lot of emotional support from friends and family. Try to start in January. It may take many attempts. It's good to have in one calendar year for deductible and for potential tax deduction. Be prepared to thoroughly examine health insurance claims. We had to prepay and then get reimbursements. I found a several thousand dollar error. Ask if there are alternative treatment options. One thing we had to do was like a $1,000+ injection regimen and it turned out there was an alternative medication that was like $9. A personal choice, but you can choose to fertilize only a few eggs if you want to ensure you won't have leftover unused embryos. Take care of yourselves. It's a really hard journey bu...
by Savvy
Mon Sep 04, 2023 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Do we have too much in 401K and IRA?
Replies: 67
Views: 7474

Re: Do we have too much in 401K and IRA?

Reading your post about being bored in retirement, how much time have you invested figuring out what retirement would look like? Considering we get one shot at life, and you already have enough to retire depending on expenses/geography, you can essentially do whatever you want. I'd invest considerable time brainstorming what versions of your future could look like before just assuming working for 20 more years is best.

Could teach, volunteer, peace corp, change careers, downshift, take summers off, travel, etc
by Savvy
Tue Aug 22, 2023 10:09 pm
Forum: Personal Consumer Issues
Topic: Japan trip, June 2024
Replies: 60
Views: 4825

Re: Japan trip, June 2024

Kumano Kodo trail. You hike between small towns to stay at various onsens. They transport your luggage for you. Highly recommend.
by Savvy
Thu Aug 10, 2023 11:45 am
Forum: Personal Investments
Topic: Changes at work-Making me think about retirement
Replies: 22
Views: 1710

Re: Changes at work-Making me think about retirement

For our company, our bonuses are paid in March but as long as you're employed on Jan 1, you earn the bonus even if you quit. Might want to check on that (carefully).
by Savvy
Thu Aug 10, 2023 11:39 am
Forum: Personal Finance (Not Investing)
Topic: Wholistic cost to employment gap/time?
Replies: 6
Views: 617

Re: Wholistic cost to employment gap/time?

Go for it! Life is short. Congrats!

If you were explaining in an interview "I built a successful business across 15 years, sold it, and took time off to recover and celebrate." I wouldn't be concerned about the gap, I'd be excited to hire someone with a breadth of skills.

Savvy
by Savvy
Sat Aug 05, 2023 2:45 pm
Forum: Personal Consumer Issues
Topic: Furniture shopping: having a hard time spending money
Replies: 56
Views: 4898

Re: Furniture shopping: having a hard time spending money

We find what furniture we like (usually Ikea) which has washable fabric and then buy used on a secondary marketplace (like Craigslist or Facebook). Typically less than half of the new price. Would rather spend money on other categories.
by Savvy
Wed Aug 02, 2023 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: Savings/mmkt account as primary clearing acct
Replies: 23
Views: 2851

Re: Savings/mmkt account as primary clearing acct

I use Sofi. Everything flows in and out of my savings account. 4.5%. Simple and smooth! I keep $100 in my checking for the very rare check that we write.
by Savvy
Thu Jul 27, 2023 10:25 pm
Forum: Personal Investments
Topic: Traditional vs. Roth 401(k) question
Replies: 25
Views: 1569

Re: Traditional vs. Roth 401(k) question

Marginal is 12%? Make decision on marginal, not effective.
by Savvy
Sat Jul 22, 2023 9:11 am
Forum: Personal Investments
Topic: 35 Year Old Portfolio Review
Replies: 14
Views: 2735

Re: 35 Year Old Portfolio Review

Similar age and life stage - hang in there & cherish the time while it's here!

Highly., highly recommend going pre-tax with every dollar you can, especially if you have FIRE in mind.
https://www.gocurrycracker.com/roth-sucks/

Edit: For example, I would max the traditional 401K before touching a Roth IRA.
by Savvy
Sun Jun 25, 2023 12:42 pm
Forum: Personal Finance (Not Investing)
Topic: Checking Account - Minimum Balance?
Replies: 88
Views: 7278

Re: Checking Account - Minimum Balance?

$100.

Sofi Checking is 1.2% interest, Sofi Savings is 4.3%. We have all paychecks, all withdrawals, all credit card payments, etc., come in and out of our savings account. Therefore, only $100 is sitting idle in our checking with low interest in case we have to write a check.
by Savvy
Fri Jun 02, 2023 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: Medical provider seeking additional $937 from 2021 activity
Replies: 7
Views: 824

Re: Medical provider seeking additional $937 from 2021 activity

Rex66 wrote: Fri Jun 02, 2023 6:33 pm A lot depends on the details like the diagnosis and treatment. You probably have a good idea if it’s typically a covered expense. By the way, the fact that insurance initially paid is completely meaningless. The contracts always allow them to claw back.
Good to know, thank you!
by Savvy
Fri Jun 02, 2023 6:24 pm
Forum: Personal Finance (Not Investing)
Topic: Medical provider seeking additional $937 from 2021 activity
Replies: 7
Views: 824

Re: Medical provider seeking additional $937 from 2021 activity

Doctor Rhythm wrote: Fri Jun 02, 2023 6:16 pm It sounds like the problem isn’t originating from the medical provider but from the insurance company that paid them and now wants some of that refunded. I suspect the provider is upset like you are. They will try to avoid paying the refund request, but if unsuccessful, will probably ask you to pay the refunded amount.

I’d reach out to the insurance company for an explanation.
Thank you! Good insight and I think you're right. I will let the medical provider know that I think we should push back against my insurance and will ask my insurance company for an explanation why they initially paid and then 18+ months later decided they shouldn't have paid.
by Savvy
Fri Jun 02, 2023 6:12 pm
Forum: Personal Finance (Not Investing)
Topic: Medical provider seeking additional $937 from 2021 activity
Replies: 7
Views: 824

Re: Medical provider seeking additional $937 from 2021 activity

Goal33 wrote: Fri Jun 02, 2023 6:09 pm Check to see if you have a newly issued explanation of benefits that pulled back that amount. If you do, then that explains it. It’s not your medical provider’s fault unless they billed incorrectly.
Thank you! We haven't seen one yet, in fact we haven't been told what specific invoice has been revised. We did not reply to the email yet, wanted to have a game plan first. But will do!
by Savvy
Fri Jun 02, 2023 6:02 pm
Forum: Personal Finance (Not Investing)
Topic: Medical provider seeking additional $937 from 2021 activity
Replies: 7
Views: 824

Medical provider seeking additional $937 from 2021 activity

Hi all - We went through IVF in 2021. We paid up front, then once claims processed through insurance and were paid to medical provider, our medical provider wrote us a check for what was reimbursed by insurance. We concluded services at end of 2021. All was settled. We just received a request this week to pay the medical provider an additional $937 (see below). Considering we spent tens of thousands of dollars, and this request is 18+ month delayed, this request to pay them $937 seems ridiculous. "I wanted to make you aware that we received a refund request from [Savvy's health insurance company] for a claim they paid in 2021. Before we refund them, I wanted to check with you to see if they have notified you in any way. It will leave a...
by Savvy
Thu May 18, 2023 6:48 am
Forum: Personal Finance (Not Investing)
Topic: Is paying debt a saving?
Replies: 243
Views: 12243

Re: Is paying debt a saving?

You receive a $3,000 paycheck:
$1,000 goes to investments.
$1,000 goes to mortgage.
$1,000 goes to spending.

Net worth is $2,000 higher than before.
by Savvy
Fri Mar 03, 2023 8:35 am
Forum: Personal Consumer Issues
Topic: Disney World Vacation
Replies: 57
Views: 4387

Re: Disney World Vacation

How old is the youngest?

Yes, go for it!
-You could save $ by taking a few days off (pool, downtown Disney, etc)
-You MUST arrive well before rope drop each morning. The first two hours allow you to do many, many more rides with short lines
-Check out Disney Tourist Blog: Do your research
by Savvy
Mon Feb 27, 2023 10:35 pm
Forum: Personal Consumer Issues
Topic: Best way to quickly declutter and organize the house
Replies: 127
Views: 12943

Re: Best way to quickly declutter and organize the house

Don't worry about organizing - focus first on getting rid of stuff.
If you haven't used it for 12 months, almost certainly you can get rid of it.
I would focus on Goodwill donations vs. finding specific users for every item.
by Savvy
Mon Feb 27, 2023 10:29 pm
Forum: Personal Finance (Not Investing)
Topic: Is it okay to play multiple job offers this way?
Replies: 31
Views: 2630

Re: Is it okay to play multiple job offers this way?

leeks wrote: Mon Feb 27, 2023 3:01 pm I would tell them the truth that you need another week because you have other pending offers to compare.
Exactly this. Be transparent.
by Savvy
Tue Feb 21, 2023 10:20 pm
Forum: Personal Investments
Topic: $2.5 million windfall at age 22... seeking advice
Replies: 140
Views: 23238

Re: $2.5 million windfall at age 22... seeking advice

Mentally commit to your career for at least 2-4 years before making any big changes influenced by your inheritance. You will learn a lot, it will shape work ethic / character, etc.

I will second that you should be extremely wary of anyone offering "advice", friends that are advisors, etc. Hopefully you don't tell anyone about your inheritance.
by Savvy
Sat Feb 11, 2023 10:53 am
Forum: Personal Finance (Not Investing)
Topic: Basement Finishing Financing
Replies: 57
Views: 4308

Re: Basement Finishing Financing

Are you hiring a company to do all of it? We just redid our very small basement. Got three quotes, all were around $40 to $50K. We decided to be the project managers ourselves and hire out individual tasks along the way. We spent between $15 to $17K and did a few elements ourselves. Companies need to build in their own profit margins. We didn't want to pay for that. Took a little longer and a little more stress and effort, but extremely glad we did it. Just something to consider. Thanks for the reply! My handiness level is pitifully low for an adult in their 30's. I would def need the company to run this start to finish. Totally guessing on the 50-75k. Need waterproofing, egress window, bedroom, bathroom, drywall/electrical/carpeting. Noth...
by Savvy
Sat Feb 11, 2023 10:34 am
Forum: Personal Finance (Not Investing)
Topic: Basement Finishing Financing
Replies: 57
Views: 4308

Re: Basement Finishing Financing

Are you hiring a company to do all of it?

We just redid our very small basement. Got three quotes, all were around $40 to $50K.

We decided to be the project managers ourselves and hire out individual tasks along the way. We spent between $15 to $17K and did a few elements ourselves.

Companies need to build in their own profit margins. We didn't want to pay for that. Took a little longer and a little more stress and effort, but extremely glad we did it.

Just something to consider.
by Savvy
Sun Jan 29, 2023 8:31 pm
Forum: Personal Finance (Not Investing)
Topic: Can I afford to sell my home after 2 years?
Replies: 47
Views: 5401

Re: Can I afford to sell my home after 2 years?

I would ignore the equity appreciation, since you have to buy a different house that has also appreciated.

What would be the cost of selling and buying including paying any points, like $40k to $70k?

How much more would annual interest be for same price house, like an extra 3%, so like $15K more per year?

So, over $100K to move. I think fence sounds like a good idea.
by Savvy
Wed Jan 25, 2023 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: Career Break - 2023 Edition
Replies: 31
Views: 3674

Re: Career Break - 2023 Edition

Congrats! Go for it! If you end up having $0 income or extremely low income, make sure to look into capital GAIN harvesting. In that sense, you kind of are making money by avoiding future taxes.

https://www.gocurrycracker.com/harvesti ... tal-gains/
by Savvy
Sun Jan 15, 2023 10:32 pm
Forum: Personal Finance (Not Investing)
Topic: Considering first big purchase - mid 20s
Replies: 165
Views: 15020

Re: Considering first big purchase - mid 20s

Congrats on early success! I am in my early 30s - SO glad I did not make a big car purchase in my 20s. The money I invested (rather than spent) grew tremendously, and also allowed me to have more cash on hand for other life events.

You are just starting your career. So many things can change (houses, relationships, health, interests, career, job market, stock market). When in doubt, save.
by Savvy
Sat Jan 14, 2023 11:29 pm
Forum: Personal Finance (Not Investing)
Topic: Invest or higher down payment?
Replies: 10
Views: 1197

Re: Invest or higher down payment?

Welcome!

Liquidity is big. I wouldn't put down any more than you need to.

But for a more thorough review from this forum, you would need to provide more details (age, net worth, income, etc). It's possible $1.5M is way too expensive.
by Savvy
Tue Jan 10, 2023 10:15 am
Forum: Personal Investments
Topic: Starting an IRA [running out of time in life]
Replies: 57
Views: 4144

Re: Starting an IRA [running out of time in life]

E.K.S.Lewis wrote: Tue Jan 10, 2023 9:52 am
Savvy wrote: Tue Jan 10, 2023 9:45 am #1 impact, by far, will be your savings rate. At this stage, what you invest in is secondary. Find a way to maximize how much you save. Can you save 30% of your income? 40%?
Are you suggesting to save as much as possible [30-40%] and invest it OR save 30-40% of my post-tax income as cash?

Im not sure. I just bought a 450k house with a 15 yr mortgage so its paid off when Im 55, trying to do extra payments to own it in 10. Off the top of my head 40% shouldn't be a problem.
Invest
by Savvy
Tue Jan 10, 2023 9:45 am
Forum: Personal Investments
Topic: Starting an IRA [running out of time in life]
Replies: 57
Views: 4144

Re: Starting an IRA [running out of time in life]

#1 impact, by far, will be your savings rate. At this stage, what you invest in is secondary. Find a way to maximize how much you save. Can you save 30% of your income? 40%?
by Savvy
Sat Dec 24, 2022 8:05 pm
Forum: US Chapters
Topic: My Christmas Gift to You
Replies: 126
Views: 13748

Re: MY CHRISTMAS GIFT TO YOU

Thank you, Taylor, for your service and sacrifice. You truly are part of the Greatest Generation! Merry Christmas!
by Savvy
Tue Dec 06, 2022 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Yet another "can I afford this house"
Replies: 40
Views: 4991

Re: Yet another "can I afford this house"

What would be your level of happiness with a $2.6M house? How happy would you be with a $1.6M house? Is the difference in happiness worth $1M?
by Savvy
Mon Nov 28, 2022 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: Most cost efficient way to create a trust?
Replies: 28
Views: 3044

Re: Most cost efficient way to create a trust?

Rise2shine79 wrote: Mon Nov 28, 2022 9:39 am Hello,
I need to create a trust to go along with my living will. What's the most cost efficient way to go about this? I want to make sure my kids are set in case anything happens to me.
Does your employer have an optional legal benefit? For example, every ~5 years or so when I need to update a will or trust, I sign up for our company's legal benefit for that calendar year.
by Savvy
Sat Nov 26, 2022 6:42 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity Holiday Offer - $150 for $50 deposit
Replies: 408
Views: 58693

Re: Fidelity Holiday Offer - $150 for $50 deposit

nalor511 wrote: Sat Nov 26, 2022 6:36 pm
Savvy wrote: Sat Nov 26, 2022 6:27 pm Thanks for sending! I was able to open the account and see my account number and it's $0 value, but when I go to fund the account, the new account is not included in the list of accounts I can fund. I will check again in the next day or two, but not sure how long it will take.
You have to link the bank to the new account first.
Awesome, thank you for clarifying!
by Savvy
Sat Nov 26, 2022 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity Holiday Offer - $150 for $50 deposit
Replies: 408
Views: 58693

Re: Fidelity Holiday Offer - $150 for $50 deposit

Thanks for sending! I was able to open the account and see my account number and it's $0 value, but when I go to fund the account, the new account is not included in the list of accounts I can fund. I will check again in the next day or two, but not sure how long it will take.
by Savvy
Fri Nov 18, 2022 10:43 pm
Forum: Personal Finance (Not Investing)
Topic: Burned out - looking for better childcare
Replies: 123
Views: 10213

Re: Burned out - looking for better childcare

DISHWASHER :mrgreen: I hate cleanup as much as the next person, but if it is taking 30 minutes after each meal, you need to reevaluate your routines and possibly your standards. Why does a baby have a placemat? Why are you hand scrubbing all of the dishes? Could more of the cleaning happen as part of the cooking, ie, while dinner is on the stove, all of the prep dishes get cleaned? Dinner cleanup was on us. When the kids were little, both parents were needed for bedtime so we came back downstairs to a kitchen mess. I remember having to hand scrub the bottles, but everything else went into the dishwasher. You need to chill out and find some dishwasher safe kids stuff. Skip the placemats for both kids, and get a high chair or booster with a ...
by Savvy
Fri Nov 18, 2022 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: Getting a leadership position at work
Replies: 61
Views: 6604

Re: Getting a leadership position at work

I have been employed at my megacorp for 16 years, and done the same job for the last 14. I know how to do my job well and am recognized for a job well done. However, the leadership circle at my workplace seems reluctant to give me an opportunity to have a leadership role. I'm getting frustrated, because I see lots of decisions made - some good and some bad - about how we go about doing our job and I would like to help make those decisions. There is one person in the leadership circle who, while he seems to get along with me just fine, is obsessive-compulsive about keeping me out of the leadership circle. I can never be right, correct, insightful, or otherwise trusted to make a decision when he is around. This perseon is loud mouthed and se...
by Savvy
Wed Oct 26, 2022 10:59 pm
Forum: Personal Finance (Not Investing)
Topic: Is it worth pursuing a JD/MBA at 38?
Replies: 76
Views: 8120

Re: Is it worth pursuing a JD/MBA at 38?

Not worth it in my opinion. Maybe take a long vacation to clear the mind, rest, recover.
by Savvy
Wed Oct 26, 2022 9:57 pm
Forum: Personal Finance (Not Investing)
Topic: IVF - Any Advice? [Financial aspects]
Replies: 27
Views: 2513

Re: IVF - Any Advice? [Financial aspects]

All, My wife and I have been trying to conceive for almost 2 years now. She got pregnant within the first 3 months, but that pregnancy ended in miscarriage and that miscarriage had complications. We've gone through several levels of interventions with reproductive endocrinologists including medicated cycles and IUI. We feel that we have exhausted those routes and IVF seems to be the next step. Does anybody have any advice (financial or otherwise) for going through IVF? A couple questions: 1) Since IVF is expensive, we might be able to itemize next year based on how much it costs? Does anybody have any experience with this and tips on what other costs we should keep track of if we are able itemize? 2) With costs, what is the timeline over w...
by Savvy
Wed Oct 26, 2022 9:46 pm
Forum: Personal Finance (Not Investing)
Topic: IVF - Any Advice? [Financial aspects]
Replies: 27
Views: 2513

Re: IVF - Any Advice? [Financial aspects]

Best of luck. Emotional cost may be much higher than financial. We did 7 transfers, which included 2 egg retrievals, which led to two children. We are so fortunate but it was a very long road. A. Try to do it all in one calendar year, because if it takes multiple rounds, and expenses pile up, you can qualify for a tax deduction. Starting in January would be a good idea. Plus, you only go through initial deductible once. B. Double check all financial claims. We combed through all expenses and found several 4-figure bills where our insruance mistakenly paid out $0, until I called and got them to fix. C. We had to prepay for the big stuff, then we'd get reimbursed after. D. Feel free to DM me. Not intended to be medical advice, but rather pers...
by Savvy
Thu Sep 01, 2022 11:14 pm
Forum: Personal Consumer Issues
Topic: What is the BEST adventure vacation you’ve taken?
Replies: 90
Views: 10166

Re: What is the BEST adventure vacation you’ve taken?

Mother Biggles wrote: Mon Aug 29, 2022 9:02 pm Hi everyone. I am looking for interesting adventure vacations. I am not knowledgeable enough to go on a back country camping trip solo so in the past I’ve hired Guides to go with family on such trips. Thinking about beautiful places to go and exciting adventures to have. Possibly where beautiful photographs can be taken. I am middle-aged and in pretty good shape. i mountain bike so guided mountain bike trips might be good. Or back country camping. Maybe exotic locations? Laos? Thailand? I hear Croatia is beautiful.

What amazing adventure type vacations have people taken?
Kumano Kodo hiking trail in Japan! Company moves luggage between ansens, and you hike from one to the next!
by Savvy
Fri Aug 26, 2022 10:31 am
Forum: Personal Consumer Issues
Topic: Coffee becomes cold too soon
Replies: 171
Views: 22381

Re: Coffee becomes cold too soon

get_g0ing wrote: Mon Aug 26, 2019 11:47 am Hello friends,

I like my coffee warm. And I like to drink it slowly in a regular mug. But it gets cold too fast for me. So I have to keep warming the mug in the microwave (I drink 1/3, then warm it, then at 2/3, I warm it again).

Anyone else face this situation :) Any neat solution you found?
Iced coffee is always the same, perfectly cold temperature. :beer

I do Trader Joe's iced coffee powder and make from home 365 days per year.
by Savvy
Mon Aug 22, 2022 10:07 pm
Forum: Personal Investments
Topic: Put extra savings to further fund Roth IRA?
Replies: 30
Views: 2052

Re: Put extra savings to further fund Roth IRA?

jtinsession wrote: Mon Aug 22, 2022 9:55 pm Bump; looking for responses from my follow-ups. Thanks, everyone!
Yes, always max your roth. You can withdraw contributions penalty free. So if some needs to be allocated conservatively, that is okay. But you will never get that Roth space back if you don't max. Very valuable space.
by Savvy
Sun Apr 17, 2022 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: Locking Mortgage Rates? Closing on May 31
Replies: 20
Views: 2211

Re: Locking Mortgage Rates? Closing on May 31

cabfranc wrote: Sun Apr 17, 2022 8:23 am Waiting to lock the rate is akin to timing the market. No one really knows what will happen to rates in the next 45 days otherwise the decision would be easy. Just lock and don't look back. Enjoy your new home.
Thank you! Great point on timing the market!
by Savvy
Sun Apr 17, 2022 8:03 am
Forum: Personal Finance (Not Investing)
Topic: Locking Mortgage Rates? Closing on May 31
Replies: 20
Views: 2211

Re: Locking Mortgage Rates? Closing on May 31

TropikThunder wrote: Sat Apr 16, 2022 11:14 pm
Savvy wrote: Sat Apr 16, 2022 10:17 pm
learntoinvest123 wrote: Sat Apr 16, 2022 4:01 pm Waiting 15 days is probably a risk you can take. 10 year treasury is at 2.87, and the Fed will be at 2-2.5 % by end of the year. Though I don't think rates will tumble either in 15 days. I would do it before the Fed hike in mid May to avoid surprises.
Thanks! For peace of mind, I think we'll do 45-day lock now vs waiting, especially if there isn't a ton of upside to waiting.
We recently locked on a new mortgage to close 4/25 and the cost difference between a 30-day and a 45-day lock was ~$300 which in the big picture is almost nothing.
Thank you! Good point, very small difference, we plan to lock today (45 day lock).
by Savvy
Sat Apr 16, 2022 10:23 pm
Forum: Personal Finance (Not Investing)
Topic: Locking Mortgage Rates? Closing on May 31
Replies: 20
Views: 2211

Re: Locking Mortgage Rates? Closing on May 31

As stated above mortgage rates are set based on the 10 year Treasury rate. So a Fed increase in the overnight borrowing rate will not necessarily impact the 10 year rate. But in general rates are headed up. It really is a very personal risk tolerance. If you are risk adverse go ahead and lock. If you are okay with some risk then monitor over the next few weeks and lock if there are any days with a slight decrease in rates or closing costs. For going with a higher rate to get some credits and hoping for a lower rate in a fewer years, I personally wouldn’t do that as I can’t predict where interest rates are going, but again it is a personal decision and your own risk tolerance. Thank you! Good point, rates could stay high for a long time! Ma...
by Savvy
Sat Apr 16, 2022 10:21 pm
Forum: Personal Finance (Not Investing)
Topic: Locking Mortgage Rates? Closing on May 31
Replies: 20
Views: 2211

Re: Locking Mortgage Rates? Closing on May 31

drk wrote: Sat Apr 16, 2022 5:28 pm Mortgage rates have moved up way more quickly than Treasury yields, and the Fed has already said that it plans to sell MBS, so I suspect that we're at or near the top. In your position, I would not pay any points or pay to lock the rate. If I did lock, I would ensure that I had an out, whether a free re-lock or starting the underwriting process with a back-up lender.
Good insight and advice, thank you! I'll ask about the free relock.
by Savvy
Sat Apr 16, 2022 10:17 pm
Forum: Personal Finance (Not Investing)
Topic: Locking Mortgage Rates? Closing on May 31
Replies: 20
Views: 2211

Re: Locking Mortgage Rates? Closing on May 31

learntoinvest123 wrote: Sat Apr 16, 2022 4:01 pm Waiting 15 days is probably a risk you can take. 10 year treasury is at 2.87, and the Fed will be at 2-2.5 % by end of the year. Though I don't think rates will tumble either in 15 days. I would do it before the Fed hike in mid May to avoid surprises.
Thanks! For peace of mind, I think we'll do 45-day lock now vs waiting, especially if there isn't a ton of upside to waiting.
by Savvy
Sat Apr 16, 2022 10:13 pm
Forum: Personal Finance (Not Investing)
Topic: Locking Mortgage Rates? Closing on May 31
Replies: 20
Views: 2211

Re: Locking Mortgage Rates? Closing on May 31

I just locked last week. Between moving and refi's, I have had 6 mortgages in the last 10 years. I have always gone with fixed mortgages and that is my strong preference. Looking at the current landscape, we went with a 10/1 ARM at 4.25%. The original rate is locked for 10 years and readjusts from there. We could have gotten a 30 year fixed at 4.875. My thinking is there will probably be a chance to refi in the next 10 years. If rates only go up, at around year 7 we will start aggressively paying down the mortgage before a large increase in rates. It sounds like you're in a similar situation where you think rates will go down eventually but you have the financial flexibility to deal with it if they don't. Maybe you should take a look at AR...
by Savvy
Sat Apr 16, 2022 2:47 pm
Forum: Personal Finance (Not Investing)
Topic: Locking Mortgage Rates? Closing on May 31
Replies: 20
Views: 2211

Re: Locking Mortgage Rates? Closing on May 31

LeftCoast wrote: Sat Apr 16, 2022 2:38 pm The Fed has telegraphed that on May 4th it will likely raise short-term interest rates by half a percent (0.50%). While this action is already priced into the bond market, it may not be fully reflected in mortgage interest rates. Also, at their press conference after the May meeting, the Fed could drop some hints regarding whether they plan to raise interest rates by another half a percent when they meet in June. Personally, I think the risk of mortgage rates going up is greater than the risk of mortgage rates coming down. I would lock now.
Thank you! Appreciate the Fed insight!
by Savvy
Sat Apr 16, 2022 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: Locking Mortgage Rates? Closing on May 31
Replies: 20
Views: 2211

Re: Locking Mortgage Rates? Closing on May 31

runninginvestor wrote: Sat Apr 16, 2022 2:00 pm I agree that you would have to calculate the break-even point.

You can also determine the break-even point using a range of interest rates. For instance if it costs you $x to lock at i% today, how much in points would you pay when rates are at a higher rate to bring it back to i%. It might be where locking in the rate now is equivalent to buying 1 point. At that point, you would have to take a guess as to whether rates would be more than 1 point higher than 45 days. (Talking about mortgage points, so 0.25%) If that makes sense.
Good point, thank you! I will look at the cost difference between a 45-day lock and other lock periods, even a 0-day lock.