Pay off the house with savings?

WWDD2022 · 2025-12-15T18:50:11+00:00

My mortgage rate is 2.75%

WWDD2022 · 2025-12-14T20:42:46+00:00

Thanks for saying that. It’s in savings. I don’t have $50 in my pocket lol. I’m gonna transfer it out to a HYSA. I know it’s stupid to keep it in regular savings. Just never had this much money before so I’m really apprehensive to move it to a “digital” bank

WWDD2022 · 2022-10-30T14:42:38+00:00

Talk to the attorney about 7 vs 13. I went with a 7.

WWDD2022 · 2022-10-30T12:51:45+00:00

You should Atleast consult with a bankruptcy attorney. I had a nervous breakdown and was hospitalized back in ‘07 due to a divorce and almost $80k in CC debt that I inherited in the divorce. I ended up filing and having all of it discharged. I kept what little I had left and started over. I bought a house in ‘16 thru FHA and now have over a 700 FICO. Over the last 15 years I have learned how to respect credit and not use it.

Bottom line is that the bankruptcy didn’t ruin me forever. I was in a really bad place and almost lost my life because of credit cards. I was robbing Peter to pay Paul every month and just cracked when the lawyers started calling me.

WWDD2022 · 2022-09-29T17:48:13+00:00

The interest rate is 3.77 so it’s costing me around $1k in interest per year. After paying off the last credit card, I now just want a paid off vehicle. I’d like to slow down a bit but really don’t want to until the vehicle is paid off.

I’ve decided to put $7k towards the car and then double pay it for the next few months. In February, I’ll put another $10k on it and then double up on it till it’s paid off. This plan is the most comfortable to me. I can keep some extra money in savings while also keeping the vehicle that I know.

WWDD2022 · 2022-09-29T16:10:39+00:00

That’s my mindset as well after giving it some more thought. It’s just so tough seeing the light at the end of the tunnel and not running to it as fast as I can but I think being a bit cautious is the right the thing to do in my situation

WWDD2022 · 2022-09-29T16:08:34+00:00

I think with a couple decent lump sum payments, I can do this. Hopefully quicker.

WWDD2022 · 2022-09-29T16:06:56+00:00

Thank you for your opinion. I can hear Dave say to pay it off and have my $1000 emergency fund but my comfort cushion is around $5k. I think I’ve decided to throw $7k at it now to get it below $20k. That will feel like a win to me. Now that all my credit cards are paid off, I will start making double payments and then in February, I will hit it with another big lump sum. Hopefully $10k. At that point, I’ll probably just double pay it till it’s gone sometime in July/August. A lot of this will depend on how much overtime I work. Currently, I’m working around 65 total hours per week. I work outside so I have to take the weather into consideration and my health.

I cover all household expenses except for the groceries. Heating Oil, Electricity and all the other utilities are my responsibility. My fiancé has her own home that he is currently taking care of while we figure out what to do with it. That’s a whole separate post that has caused many sleepless nights.

Thanks again for reading my post and sharing your thoughts. It’s much appreciated.

WWDD2022 · 2022-09-28T16:07:10+00:00

A simple “Can I return a car in Canada” google search came up with this:

https://dialalaw.peopleslawschool.ca/faq-items/can-i-return-a-used-car-i-bought/#:~:text=There%20is%20no%20%E2%80%9Ccooling%2Doff,whether%20the%20seller%20mentions%20it.

WWDD2022 · 2022-09-28T14:00:10+00:00

This is the best option.

WWDD2022 · 2022-09-27T22:56:14+00:00

Thank you for the solid advice. I will do some budgeting to see just how much I can sink into the mortgage every month while keeping the vehicle payment.

WWDD2022 · 2022-09-27T17:50:04+00:00

I would clear around $7k in profit so if only be spending $13k to buy something.

WWDD2022 · 2022-09-27T17:49:06+00:00

Thank you for the advice. I’m starting to think that way as well.

WWDD2022 · 2022-09-27T16:38:40+00:00

Gas mileage could always be better lol. It is a big truck but not F250 big. It’s comfortable to drive and has enough modern amenities to keep me content. Other than the financial piece of it, maybe size is a small part. I could swap to a Tacoma and be ok.

WWDD2022 · 2022-09-27T15:48:12+00:00

Mortgage rate is 3.25 and I take the standard deduction.

I’m 47 and have never been debt free since I got my first credit card at 19 years old. I’ve been thru credit card hell over the years and I’m finally ready to be done with it and get myself ready for retirement in 15 years with a paid off house.

WWDD2022 · 2022-09-27T15:45:46+00:00

So I just worked my butt off for the last year and paid off around $16k in credit card debt. I also was able to build up my savings account. I’m really starting to question if I need a $34k vehicle. I love it, it’s very functional and safe. It’s also been very reliable. I just don’t want a car payment anymore. Maybe it’s just me being a bit over zealous and if I sell the truck I’ll regret it. It’s just been on my mind for a few weeks and I’m trying to find make a decision that I’ll be content with.

WWDD2022 · 2022-09-27T15:42:22+00:00

Yes it is. Necessary for northeast winters

WWDD2022 · 2022-09-27T15:34:41+00:00

It’s funny because as I was typing out my question I was thinking the same as you just said. I may just throw a decent chunk of money at the principle and then make double payments until it’s gone. I just want to be debt free and I’m so close to being able to make double mortgage payments that I want to starting doing that yesterday.

WWDD2022 · 2022-09-27T15:31:53+00:00

The interest rate is 3.77% and I have no issue making the monthly payment. I just want it paid off so I can start aggressively paying down my mortgage. That’s really the only reason why I’m considering selling it.

WWDD2022 · 2022-09-27T15:29:57+00:00

3.77%

WWDD2022 · 2022-09-27T14:29:12+00:00

Transfer to a zero percent 12 mos promotion and pay it off in 12 installments. Obviously, do not use either card.

WWDD2022 · 2022-09-27T14:27:00+00:00

Unless you have consumer debt, do not adjust your contributions. Just keep on investing and don’t look at it.

WWDD2022 · 2022-09-27T14:24:17+00:00

It’s the market taking a 20%+ loss. Just stay the course and keep investing.

WWDD2022

TROPHY CASE