romack991
homebrewed
- Location
- Warsaw, IN
it's the new year, curious how much people "lost" in their 401K last yr, mine finished down 40%.
Dave Ramsey, debt, credit cards, retirement, etc
- Thread starter SuperJETT
- Start date
douglee25
m3booooy
- Location
- South Jersey
Rate of return for me for year 2008 was -34%.
Nice, huh?
Doug
Nice, huh?
Doug
freestylegeek
waiting...
- Location
- Grand Rapids, MI
On a different note (pun intended) we just locked in our 15 year mortgage rate at 4.5%.
So, we'll be going from a 30 year at 6% to a 15 year at 4.5%.
We're stoked!
So, we'll be going from a 30 year at 6% to a 15 year at 4.5%.
We're stoked!
SXIPro
JM781 Big Bore
- Location
- Here on the 'X' mostly
freestylegeek
waiting...
- Location
- Grand Rapids, MI
SXIPro
JM781 Big Bore
- Location
- Here on the 'X' mostly
Good deal. Mind if I ask who the Bank/Mortgage Lender was? 3 weeks ago I got offered 4.25%, but it was with 2.5 points, so I passed.
freestylegeek
waiting...
- Location
- Grand Rapids, MI
douglee25
m3booooy
- Location
- South Jersey
So to refinance it cost you nothing out of pocket?
Doug
Doug
Moondance
Just plain me....
- Location
- Ridin' the Crazy Train
most refinances will allow you to roll the closing costs back into the loan
douglee25
m3booooy
- Location
- South Jersey
Good point.
Doug
Doug
freestylegeek
waiting...
- Location
- Grand Rapids, MI
oh no, there's plenty out of pocket!
The closing costs are $1465, which can be 'rolled into' (added to) the total loan amount. That covers the $300 appraisal, the $150 title fee, and a bunch of administration (profit) costs. The interesting thing is that the first months payment isn't due until March (if we close in January), so the money we would have used for January and February's mortgage payment will be used to cover the closing costs.
The cool thing now is that if we don't add a single penny to this new monthly payment (which is HIGHLY unlikely) I'll have a paid for house when I'm 47. 15 year mortgages always pay off in 15 years.
douglee25
m3booooy
- Location
- South Jersey
Roger. Thanks.
Doug
Doug
firemedicmonkey
Erie Surf & Ski
- Location
- Erie Surf and Ski... Cleveland, OH
I just wanted to say that I first starting reading this thread a couple weeks back and it got me into checking this stuff out. I have been trying to pay down my credit card debit down for the last year since I got this new job. In the next month I will have gotten rid of all my credit card debit... I am starting the Total Money Makeover Program as soon as I can get my new debit card... ( U cant use a credit card to pay for the program!)
What does anybody think about the Rich Dad Poor Dad stuff??
What does anybody think about the Rich Dad Poor Dad stuff??
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Nicely done!
Nice!
I believe Dave mentions the Rich Dad Poor Dad stuff here and here. He might have some criticism if it involves borrowing money (not sure if it does).
tom21
havin fun
- Location
- clearwater FL
its a waste- like many other "experts" it is full of common sense stuff you already know. If all these guys are so good at this stuff and its so easy they should make a big media deal out of it or a tv show and do it survivorman style- drop em off in a random city - cut off from help and wealth and see how long it takes em to become millionaires again. lots of em say they have but- seriously?
FYI!!!!! ramsey has it wrong on the way to pay down credit cards. the fastest cheapest way is the highest interest first. do the math.
If you had a good credit card, you could have paid that on your credit card and earned $20-50 in rewards, cash back, air miles..., then paid it back immediately and paid no interest. That is what I do, I try to pay for everything on credit, property tax, groceries etc., and I usually rack up ~$200 in rewards that I use to buy tools, or something for the house. It works as long as you are disciplined and pay it off in full, or else the interest you pay offsets the rewards, but it works for me.
SXIPro
JM781 Big Bore
- Location
- Here on the 'X' mostly
Dave knows that mathematically you are better off paying off the highest interest rate cards first, but he also understands human nature:
Myth: I should pay off the debt with the highest interest rate first to get out of debt quickly.
Truth: You should pay off the smallest debt first to create the greatest momentum in your debt snowball.
The math seems to lean more toward paying the highest interest debts first, but what I have learned is that personal finance is 20% head knowledge and 80% behavior. You need some quick wins in order to stay pumped enough to get out of debt completely. When you start knocking off the easier debts, you will start to see results and you will start to win in debt reduction.
Debt Snowball Plan
The principle is to stop everything except minimum payments and focus on one thing at a time. Otherwise, nothing gets accomplished because all your effort is diluted.