Mortgage gurus talk to me

[CAMSDADDY]

I was in a similar situation in 2020, I ended up putting $50k down on a $230k loan, 30 yrs@3.85%. I used the other money to build a small shop and any other expenses that popped up, and they did. I’m glad I did, it dropped my payment…….and then the taxes and insurance entered the picture. To this day, I still pay more than the required payment and extra when/if I get taxes back or a bonus. My plan is to have it paid off in less than 20yrs.

I had planned on paying off our house in the next couple of years. I then realized my money market account is paying 4.1% and my mortgage is 3.25%. If I use my savings to pay off my mortgage it will cost me money. Also if I were to pay off my house with savings and then I had to borrow money for repairs or vehicle then I would have to borrow at a rate much higher than the mortgage rate. I will still have it paid off sooner than its due but Im not throwing extra while I can make money with it in a money market.

 

[Fatal_Bert]

Buy 100k worth of guns is the obvious answer.

 

[the_great_white]

Buy 100k worth of guns is the obvious answer.

invest 100k in a cerakote business

 

[Going Postal]

I have a house that I am getting ready to put on the market, 100K would make a good down payment. Call me!

 

[GeauxLSU]

I had planned on paying off our house in the next couple of years. I then realized my money market account is paying 4.1% and my mortgage is 3.25%. If I use my savings to pay off my mortgage it will cost me money. Also if I were to pay off my house with savings and then I had to borrow money for repairs or vehicle then I would have to borrow at a rate much higher than the mortgage rate. I will still have it paid off sooner than its due but Im not throwing extra while I can make money with it in a money market.

It's not that simple. The mortgage interest paid may be tax deductible. The money market interest earned is being taxed.
The money market rate will fluctuate.
Pay it off. Use the extra monthly cash flow to invest.

 

[howl]

I'd look for a rental propert to buy with the 100k. Let the renters pay your mortgage on the new build.

If you want to get kinky try to find real estate invesment pros to move the rental property into a Roth IRA after your new mortgage is paid off.

 

[wallacem]

The extra $100k down might give you a better rate, it should. If so, that is a plus. Do you have somewhere you can put the $100K that would benefit you more that the rate you will be paying on the mortgage? If your mortgage rate will be 6%, you would have to make more than 6% on the $100K to be worthwhile. Personally, I would talk to the mortgage originator and talk RATE. As your LTV goes down, so should the rate. Wallace {retired Mortgage originator}

 

[Timber Cruiser]

no kidding, locking into 2.25% for 15year money is the smartest thing I ever did...Just shouldn't have done it in gwinnett county, lol.

2.25 is soul crushing to those bank shark mother****ers. Love it.

 

[Timber Cruiser]

does the down payment negate the need for PMI?

If it’s 20%. He can also buy points at a percent or so each. They ain’t worth what they used to be though and can’t buy that many as you used to could.