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Personal Finances / Credit Cards and Consumer Debt
|Subject: Re: Why is Mortgage Debt "Different"||Date: 3/26/2014 7:55 PM|
|Author: flounderlady||Number: 308047 of 309185|
Mortgage debt isn't any different than any other debt, it's just there for a longer period of time.
You want to leave your efund alone. You will need it for an emergency.
Don't take out an equity loan on your house they expire after 15 years and the bank can call the loan at any time. In order to get the equity loan you will have to pay for an appraisal, origination fees, and closing costs.
If you want to invest for long term appreciation, it's better to purchase a quality mutual fund, set up the dividends & capital gains as a drip and over a 15 year period you will have doubled your money. Mutual funds only require $2500 to start. You'll sleep better with mutuals rather than individual stocks.
In order to increase your retirement accounts, every time you and husband get a pay increase take half of the net and put it into your 401K which should be invested in stock funds and a minimum in money markets. Just remember the money you save on a pretax basis will be taxed when you start withdrawals after 59-1/2. If you can, set up another savings account that you contribute $40 a week to as an after tax retirement fund. Just don't go completely pretax on everything as when you get to retirement you will wind up in a higher tax bracket if you only make pretax investments.
Paying off your mortgage quickly to get out of debt really is a good thing as long as you save the monthly payment rather than spend it.
The one thing I found is to save a little bit every week and you will have a large amount over time.
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