Crazy to think back to the 80s when it was even a few points higher than that- I think my parents bought their first house at like 13-15% or something crazy. In that scenario, paying off a mortgage asap would be a no-brainer.
Ran its course, now in the weeds.
- Thread starter Addicting
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Crazy to think back to the 80s when it was even a few points higher than that- I think my parents bought their first house at like 13-15% or something crazy. In that scenario, paying off a mortgage asap would be a no-brainer.
Nick87
Well-known member
I wonder what percent groceries were of your monthly income vs now, or insurance.
mevertsen
Well-known member
A thought came to mind.
What type of mortgage do you have?
I had an FHA mortgage, started in 2013 at, 4.25 i think. It had PMI which was about 15 percent of the total payment, and about 1/3 of the principal. Escrow amd interest ate up the rest.
We refinanced in 2020 at 5 percent on a real estate loan from the credit union. Had 85% LTV, so the credit union carried the whole thing. 10 year loan. Got rid of the PMI.
We have a little over 4 years left. Went from 300 or something going to principal. To 700 plus.
We do have to pay our own taxes and interest. So we are paying more per month, but no PMI, and shorter amortization.
I guess the point of all that was to see if you have anything going to fees and find a way to reduce or eliminate them ASAP, as that is truly wasted money, and the fasted rate of return. IMO.
Started as a conventional 30-year, roughly 5% (can’t remember)- refinanced during covid to a 15 year @ 2.75% (no PMI). I think we have around 10 years left.
mevertsen
Well-known member
I guess I got you and @Addicting mixed up.
But the question is for him as well regarding the pay off mortgage faster, or invest.
If there are fees or PMI in the payment, I think eliminating them entirely or paying down faster needs to at least be considered.
Addicting
Well-known member
No fees, no PMI, and the mortgage is paid off in the same time frame essentially. Just investing should leave me with 20k or so at 6% rate of return over the 10 years.
BuzzH
Well-known member
Or Healthcare, or vehicle prices.
elkantlers
Well-known member
We paid our home off about eight years ago. We bought a different home with more property this spring. We had a mortgage for all of 4 months while we did some updates on the new house before we moved in and got the old house sold. I can tell you I hated having that mortgage. It was all mental i know. I couldn't be one of those people that carry a mortgage when they have the money to pay it off.
Nick87
Well-known member
Or childcare. Of course even in 1990 I think having a parent stay home was a lot more feasible option. Im not saying it was a cake walk for any generation but you've definitely got to figure out how to do more with less lately. Still have it better than some generations, no doubt.
Fair points, but people on average are also way fatter and vehicles last way longer.
elkantlers
Well-known member
Vehicles last longer? What are you smoking? Lol
Than they did in the 1980s/early 90s? They absolutely do, not even comparable. How many vehicles of that era were hitting 300k? It’s fairly common now.
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Wildabeest
Well-known member
You’ve apparently not seen @Addicting’s ‘burban…
Did something similar.
Bought a lake house, put about 50% downpayment and took out a really low interest rate loan for the rest. Made about six payments on that and said heck with it, paid it off.
SAJ-99
Well-known member
It has been on a steady decline for a long time. Our preferences change. We now eat out more, which is more expensive. However, the food production industry has gotten more efficient. If you don’t trust the data look at the average weight of Americans.
Ag and Food Statistics: Charting the Essentials - Food Prices and Spending | Economic Research Service
Retail food prices partially reflect farm-level commodity prices, but other costs of bringing food to the market (such as processing and retailing) have a greater role in determining prices on supermarket shelves and restaurant menus. Monthly price swings in grocery stores for individual food...
Nick87
Well-known member
I think that correlates more to what you eat. After all, the shit food is the least expensive. I know that's what your chart says but I dont think im buying foods been on the decline. I guess im a conspiracy theorist or whatever. But when your food costs start to outweigh your mortgage and we eat out maybe twice a month and thats counting picking up a pizza.
Addicting
Well-known member
We are doing an exercise this month, January pantry cook off.
For the month we can only buy eggs, milk, vegetables, and bread.
With just what is in the recesses of the pantry we have to build meals. We did an inventory in Tuesday and found 23 meals we could make just from what’s already on hand. The goal is to spend less than 100 for the month of January on groceries.
I'm trying to do something like that. I have plenty of meat and fish in the freezer. Trying to make different things with what I have. Need to add more fruits and vegetables to my diet.
Nick87
Well-known member
What are you packing the kids for lunch ? Leftovers?
Addicting
Well-known member
They get free school lunch. Wife and I are home so leftovers for us.
Biggest shift is stop shopping at Costco for premade stuff and just cook.
I have two large freezers running, canned cubby full, and a pantry with dry goods. We don’t need more microwave breakfast sandwiches and frozen ready to eat box meals.
