Pay off mortage or buy Lexus?

[spazo]

not anymore. things were different in 2002.

[jerebear21]

I'm sorry my friend, but I'm disputing this because I owed student loans from that time. It was never .25%. From my vague memory it was 3/4% and when I went to grad school it jumped to 5/6%.

 

After 70/80 payments they reduced it 1%(NOT TO 1%). I owed 188K and payments in the same proximity as yours on a 20 year note. And due to my income there was no chance for a tax rebate on that interest.

 

https://www.nerdwallet.com/blog/loans/student-loans/federal-student-loan-interest-rate-timeline-events/

 

also I'm not trying to be a d&ck about this. If you want to give OP or anyone here sound financial advice, you have to be forthcoming AND reasonable. Money doesn't grow on a tree and an overly aggressive attitude towards the market is how we all end up in the hole we were in a decade ago.

 

Pay off your house and exhaust every single tax sheltered investment you can. And drive toyota. =P

[baddomes]

That is true, things were definitely different in 2002. 30-day LIBOR never went below 1.37 in 2002. Prime was 4.75% on 1/1/2002 and 4.25% on 12/31/2002.

 

Congrats on securing your fixed rate Prime minus 4.00% loan from your Dad. Or was yours the first fixed rate "LIBOR minus" loan in history?

 

OP, and everyone else, here's the lesson you can learn from spazo: Get your parents to "lend" you record-cheap money, and invest aggressively because you know they'll give you more when you fall on your face.

[spazo]

wow. just wow. you're a turd.

 

my parents paid absolutely $0 toward college. my parents gave me no loans. go look up georgia's HOPE scholarship program. $0 tuition to state schools. i drove pizzas around during college to avoid taking loans, but it wasn't quite enough, so, in addition, yes, i got a subsidized loan. the principal balance of the loan was in the neighborhood of $2500 at the time i took it out. and i was wrong...it's not $1500 now, it's closer to $600. I pay almost no attention to it because the payments are auto drafted from bank. it is now serviced by navient. let me know if you find a way for your own kids to go to school for $2500

 

but even if i did have rich parents (which i don't), first off, it's patently immaterial to anything else I posted. you're quibbling over the rate of interest i pay on a loan where the balance is less than you spent on your putter. The difference between 4% and 0.25% on a $600 loan is less than $30 a year. this is what you want to get hung up on? second off, it still doesn't change math on equities vs homes. third off, you're a turd.

 

keep on assuming and refuse to actually come here with math.

[jerebear21]

inb4 the lock!

[spazo]

Money doesn't grow on a tree and an overly aggressive attitude towards the market is how we all end up in the hole we were in a decade ago.

you completely ignore that the "overly aggressive attitude" from a decade ago was 100% centered around the assumption that real estate was a good investment, kind of like everyone commenting in this thread.

[jerebear21]

also the difference between saying 4% and .25% is called credibility. It's very important.

[jerebear21]

 

also I'm not trying to be a d&ck about this. If you want to give OP or anyone here sound financial advice, you have to be forthcoming AND reasonable. Money doesn't grow on a tree and an overly aggressive attitude towards the market is how we all end up in the hole we were in a decade ago.

you completely ignore that the "overly aggressive attitude" from a decade ago was 100% centered around the assumption that real estate was a good investment, kind of like everyone commenting in this thread.

 

it's leveraging against something that's predicted to be higher than it is, the same thing you're telling him to do. He can refinance to a lower interest rate while it's still low but asking him to take on more risk(pulling more cash and put it into a bull market) is unnecessary at his age and his current portfolio. He owes ONLY 65k. That's like a couple dollars compared to some of the notes the jones owed. Completely not the same.