cinntsp Posted February 3, 2019 Share Posted February 3, 2019 23 hours ago, camoman1234 said: That would be everyone including myself. On average one will spend 12-18% more with plastic than cash. What do you think it does to one's neurotransmitters when you pay for supper at $45 or you swipe and pay a month later. There is proof in this theory and it's growing. I'll stick to maximizing my credit card rewards. Link to comment Share on other sites More sharing options...
Boatswain2PA Posted February 3, 2019 Share Posted February 3, 2019 On 2/2/2019 at 4:03 AM, ERCat said: Just wanted to chime in here.... You are not being delusional at all...this IS how the math works out over 30 years. The problem is that's not always how LIFE works out. You are taking a huge risk (and making PMI payments) with only putting 5% down. All it may take is a personal or family illness, a new hospital CEO who changes your work environment, a new hospital merger and now the ED is physician only, a tank in local housing markets, or a multitude of other things that can (and do) happen and suddenly the math changes because your goals change. Link to comment Share on other sites More sharing options...
Boatswain2PA Posted February 3, 2019 Share Posted February 3, 2019 16 hours ago, cinntsp said: I'll stick to maximizing my credit card rewards. I do the same thing, although I will throw out that because we have followed the Dave Ramsey plan, we can afford to splurge on whatever we want. Link to comment Share on other sites More sharing options...
camoman1234 Posted February 4, 2019 Share Posted February 4, 2019 23 hours ago, cinntsp said: I'll stick to maximizing my credit card rewards. That's fine. Just stating facts. You of course can do it anyway you want. Good luck! Link to comment Share on other sites More sharing options...
mgriffiths Posted February 16, 2019 Share Posted February 16, 2019 On 1/21/2019 at 4:03 PM, Boatswain2PA said: Synchrony bank has 2.8% interest (or close to that) on savings accounts. That's what I'm using. I have actually been looking into refinancing my student loans - have a guaranteed rate for 4.04% already, but am looking at another bank that may be able to do 3.5%. In the process I came across Kasasa checking accounts. You have to jump through some hoops, but there are banks offering 4.5% interest rates!!! I am trying to learn more - biggest question is whether the interest rates can decrease once the account is opened, but to make some debit card purchases and have a direct deposit...seems WAY worth it! Washington Savings Bank has 4.5% return, but only on the first $10,000. Kalsee Credit Union has 4.25% return up to $25,000. No affiliated with either, but might be soon. Link to comment Share on other sites More sharing options...
UpperLeftPAC Posted February 17, 2019 Share Posted February 17, 2019 Wow. 4.04%?? Where was that? May be time to refinance too. Link to comment Share on other sites More sharing options...
mgriffiths Posted February 17, 2019 Share Posted February 17, 2019 The 4.04% was laurel road. Very quick, easy process - and I have 30 days to accept the offer. Link to comment Share on other sites More sharing options...
Boatswain2PA Posted March 19, 2019 Share Posted March 19, 2019 A well written article on how dangerous trick mortgages are. https://www.marketwatch.com/story/this-bubble-era-mortgage-trick-could-smash-major-us-housing-markets-2019-03-18?mod=mw_theo_homepage Every house that has been foreclosed on has one thing in common....a mortgage. Link to comment Share on other sites More sharing options...
mgriffiths Posted March 19, 2019 Share Posted March 19, 2019 11 hours ago, Boatswain2PA said: A well written article on how dangerous trick mortgages are. https://www.marketwatch.com/story/this-bubble-era-mortgage-trick-could-smash-major-us-housing-markets-2019-03-18?mod=mw_theo_homepage Every house that has been foreclosed on has one thing in common....a mortgage. very interesting article, but will say that the article fails to explain why the people defaulted on their mortgage. Having 2, 3, or 4 mortgages/HELOCs or whatever doesn't force you to default. A home losing a massive amount of its value does nothing to cause an owner to default - and they only actually lose if they sell during the down period...just like selling during a stock market crash - when in reality you should be buying everything is sight! Without getting political, Trump was completely correct when he stated that he liked recessions because that was the time to MAKE MONEY!! Owners default when they miss payments. So why did they miss payments? I was recently offered a HELOC for my recently purchased home, and the interest rate was quite reasonable...4% I believe. But, with my financial goals I was concerned I would not be able to make both my mortgage and HELOC payments without forfeiting retirement savings, children's college funds, etc. So the question is what am I using the HELOC money for (if I had taken out the loan)? Basically the HELOC could go toward a maybe reasonable use like retirement or children's college, or I could blow it on a new car, vacations, remodeling the house, etc. For me, and I would argue most...taking out a loan to finance retirement or to fund an 8 month old child's future college makes ZERO sense - so I declined the loan. But again, the question is what led to people defaulting on their mortgage/HELOC payments? Plus, an interesting aspect is that the bleeding stopped when the banks stopped simply foreclosing on properties and instead worked with people to restructure their payments. The article states that this is "kicking the can down the road." While true, it also gives the owner(s) the opportunity to recover, and possibly give the market to recover so they can sell the home at a profit - which is what the article states happened in 2012. So, the key is to not panic (both the lender and the owner)...again just like the stock market. You only lose money when you take the money out. As I have said in other threads (and maybe even this one), the stock market did TERRIBLE things in 2008. I don't have the numbers in front of me, but I lost around 35-40% of my investments that year...but if you look at the entire decade from 2005-2015 I made ridiculous money in the stock market because 2010 and onward the stock market went gangbusters recovering from the recession and besides 2018 (stock market basically returned nothing or maybe lost some) has done quite well. Link to comment Share on other sites More sharing options...
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