Refinancing Our Home

cubrock said:

I think we are on the same page, overall. But, I do think the debt/banking system of our society is evil and has evil roots aimed at the enslavement and subjugation of the average person. It is based on the intentional devaluing of everyone's currency to force us to continue to work within the financial system just to tread water, then skim off all our work as much as possible, be it through debt, financial fees, costs of regulatory compliance, etc.

If you can find a way to make a win out of it, then you should and I applaud you. You have obviously done well for yourself, to include making debt work for you right now, and that is commendable.

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I view banking like any other product. It exists to make money off of consumers. It isn't evil in its nature. I think people blame banking a lot because it is a easy scapegoat which deflects personal responsibility for their choices on to someone else. This is not directed at you cubrock I am talking in general. The debt banking system when understood and used correctly is an effective tool to build financial stability and sometimes wealth. Without it we would have very little growth in the economy.

Yes lots of people get eaten up by it but lots of people are given the opportunity to succeed because of it.

Chuckman said:

Debt has a place, and can be a tool. It must be managed. The fact that most people (certainly not casting an accusatory glance at anyone here...) view consumer debt as just a thing and no big deal speaks volumes about peoples' inability to manage money... And I do not dig the hypocrisy of a lot of people (again, not here...), two incomes, two new vehicles and a big-ass house, then bitch about not having any money....

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Chuckman said:

I am a nurse, 6 kids, single-income (we homeschool), we payed our 30-year mortgage in about 7 years. When people say "I can't do it" I throw the bullshit card. For most people it's not because they can't, they just don't want to.

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Life is a balance. Your priorities are not everyone's priorities. I try not judge nor care about what other people do with their money. I have made tons of missteps in my financial life but at this point I have more wins than loses. I could pay off everything today but what would I gain. I would use up my entire safety net. I would lose the ability to enjoy the prosperity I have helped to create. I would lose the flexibility I have built into my financial life. I have always kept some debt while creating a short and long term plan. I have rental income. I have tax deferred retirement savings. I have an emergency fund. I also have 2 new cars. I like vacations and some would consider my home to be big assed. LOL Some would say I am lucky and in a sense that is true but I am also successful. Without some debt it would not have been possible. I don't complain that I have no money but I do know what you are talking about. I know people who make tons of money but still live pay check to pay check.

Real financial literacy and balance is the key IMHO. I personally do not want to be that old man who dies with millions $$$ in the bank but has not gone on vacation in 30 years or owned a nice car in his lifetime or lived in a nice home. To me that makes no sense. I am also not going to leave a ton of money to my hiers. I am going to enjoy it while I am alive. I can't take it with me so I am going to make it and spend it while I am alive. Money in and of itself has no value. It can be traded for something of value. What that is and how much one trades is up to the individual.


Sorry to the OP about the thread drift. Good luck on your refinance.

Carolinatlc said:

Have family members that made consistently over $500k a year for at least the last 10 years between them. One got laid off for around 6 months but that included a 3 month severance. It sounded like their world was going to end. Couldn't get the new fancy vehicle they get every 2 years, had to pair down to one big vacation from 2-3 a year, told family members they might need to borrow money if this lasted much longer. Here I am single income supporting a family of 5 on much less than $500k a year just laughing.

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Sounds like they have made some poor decisions.

wvsig said:

I view banking like any other product. It exists to make money off of consumers. It isn't evil in its nature. I think people blame banking a lot because it is a easy scapegoat which deflects personal responsibility for their choices on to someone else. This is not directed at you cubrock I am talking in general. The debt banking system when understood and used correctly is an effective tool to build financial stability and sometimes wealth. Without it we would have very little growth in the economy.

Yes lots of people get eaten up by it but lots of people are given the opportunity to succeed because of it.

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Some individual banks, yes, I look at them like any other product. Our banking system, with the Federal Reserve central bank at its core, is what I am referring to as evil in its nature and there to enslave and subjugate, with willing participation from the higher ups at many or most of the larger commercial banks and boatloads of politicians. I don't say that lightly and am not using it as a scapegoat. It is my opinion based on historical research, along with a stint at one of the major national banks. Of course, people are still responsible for their individual finances and decisions, regardless.

With that said, if you disagree, I'm cool with that. Ain't nothin' wrong with differing opinions on the matter.

Edited to add - I'm sorry for my part in the thread drift, too. This is one of my hot buttons and I pushed it myself this time.

wvsig said:

Sorry to the OP about the thread drift. Good luck on your refinance.

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Thanks. Without going into details, I just wanted to be a bit more clear on my situation. We do have a very big house. The kids are grown now, one is working and the other in college. We are thinking about downsizing down the road. It'll be a few years before we pull the trigger on a relocation. I am very responsible with my money and do not have any debt other than my mortgage. It is a jumbo loan with about 15-1/2 years left on it. It is a large house on 4 wooded acres.

Because it is a large custom built home, the mortgage balance is high, but I have a bunch of equity in our home as well. I can very easily and comfortably pay our house off tomorrow if I so desired. However, I am making very good interest on the money I have invested with my bank, therefore, I want to leave those funds alone and just refinance the house down to a lower interest rate instead of taking a bunch of cash out to pay it all off now. So that's where I'm at right at the moment.

I just didn't want anyone to think I'm a complete doofus about managing money since I started this thread. I did goof by not refinancing several years ago. The thought crossed my mind on several occasions, I just never took action.

Qball said:

Thanks. Without going into details, I just wanted to be a bit more clear on my situation. We do have a very big house. The kids are grown now, one is working and the other in college. We are thinking about downsizing down the road. It'll be a few years before we pull the trigger on a relocation. I am very responsible with my money and do not have any debt other than my mortgage. It is a jumbo loan with about 15-1/2 years left on it. It is a large house on 4 wooded acres.

Because it is a large custom built home, the mortgage balance is high, but I have a bunch of equity in our home as well. I can very easily and comfortably pay our house off tomorrow if I so desired. However, I am making very good interest on the money I have invested with my bank, therefore, I want to leave those funds alone and just refinance the house down to a lower interest rate instead of taking a bunch of cash out to pay it all off now. So that's where I'm at right at the moment.

I just didn't want anyone to think I'm a complete doofus about managing money since I started this thread. I did goof by not refinancing several years ago. The thought crossed my mind on several occasions, I just never took action.

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Awesome! Run the numbers and most likely it will be worth it!

Qball said:

I just didn't want anyone to think I'm a complete doofus about managing money since I started this thread. I did goof by not refinancing several years ago. The thought crossed my mind on several occasions, I just never took action.

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Never crossed my mind to think that.

Jeppo said:

@cubrock & @wvsig
I think we’re on the same page. I’m convinced DR’s program is a lifesaver for those that get in over their heads and/or aren’t fully capable to manage money, spending, debt, etc. My only issue is with the blanket message that debt is evil.

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To be fair, his argument is basically: "we talked to thousands of people with millions of dollars for retirement, here are things they all had in common", with no debt being one of those things.

As for refinancing to a lower interest rate, I heard someone call his show and ask exactly that, he was all for it. Even if staying on a 30 year (he really likes 15 year) but definitely if moving to a 15.

I think at this point, most people aren't capable of managing their finances very well. It's not taught in school anymore, and the parents (who make $40k/year and have two $50k cars and a $250k home) sure aren't teaching it. DR's plan is a lot better than what they have now.

Qball said:

Thanks. Without going into details, I just wanted to be a bit more clear on my situation. We do have a very big house. The kids are grown now, one is working and the other in college. We are thinking about downsizing down the road. It'll be a few years before we pull the trigger on a relocation. I am very responsible with my money and do not have any debt other than my mortgage. It is a jumbo loan with about 15-1/2 years left on it. It is a large house on 4 wooded acres.

Because it is a large custom built home, the mortgage balance is high, but I have a bunch of equity in our home as well. I can very easily and comfortably pay our house off tomorrow if I so desired. However, I am making very good interest on the money I have invested with my bank, therefore, I want to leave those funds alone and just refinance the house down to a lower interest rate instead of taking a bunch of cash out to pay it all off now. So that's where I'm at right at the moment.

I just didn't want anyone to think I'm a complete doofus about managing money since I started this thread. I did goof by not refinancing several years ago. The thought crossed my mind on several occasions, I just never took action.

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Personally, I think that if I could pay off the house, I would, but that comes from losing a home once, so take that as background. The way you outline things seems quite reasonable to me.

random said:

To be fair, his argument is basically: "we talked to thousands of people with millions of dollars for retirement, here are things they all had in common", with no debt being one of those things.

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Makes sense to me.

On the other hand, I don’t remember him calling me.