Fueled by Caffeine said:I like how you guys treated yoruself to something after this..
I will go buy a grill this weekend. My old weber finally rotted out and I "deserve" a grill.
Yes, you do! And buy yourself a NICE one!
I've finally opened the purse strings for myself a bit lately since after dropping almost $10k to keep my girlfriend in school and have her graduate last May (she will still have student loans to pay off). But I'm getting REALLY close to having no debt, but the mortgage.
alfadriver (Forum Supporter) said:There are zero cost re-fi options.
I beg to differ. There ain't no free lunch. Yes maybe you get a package where there are no "closing costs", but then you pay a higher rate or something. Doesn't mean you can't beat your current rate, but someone is paying for the inspections/assessments/underwriting/recording/transaction-processing/sales/etc, and I'll give you a hint it's not the bank. Also there's your own personal time you must spend doing it.
If you re-fi into a cheaper loan, great. But that's been easy for the past 40 years? because interest rates have generally been going down.
Anyway, this is off topic and mostly academic. Great work FBC!
Great to hear you are finally "free"
I think the first class in Uni needs to be Finance , well really when you are a High School senior :)
In reply to AngryCorvair (Forum Supporter) :
Seriously, high five! That is awesome. Clearing debt is probably the 2nd best feeling I can think of.
Robbie (Forum Supporter) said:alfadriver (Forum Supporter) said:There are zero cost re-fi options.
I beg to differ. There ain't no free lunch. Yes maybe you get a package where there are no "closing costs", but then you pay a higher rate or something. Doesn't mean you can't beat your current rate, but someone is paying for the inspections/assessments/underwriting/recording/transaction-processing/sales/etc, and I'll give you a hint it's not the bank. Also there's your own personal time you must spend doing it.
If you re-fi into a cheaper loan, great. But that's been easy for the past 40 years? because interest rates have generally been going down.
Anyway, this is off topic and mostly academic. Great work FBC!
Well, we actually did zero closing cost re-fi's more than once to get lower rates. And to get shorter terms. That helped force us to pay it down faster, saving a lot of money. Was it the lowest rate possible? No, but when doing the math, it was cheaper in the long run.
In reply to alfadriver (Forum Supporter) :
We did the same. Most advisors say that if you can't save at least 1% point then a refi isn't worth it. Run the numbers and just keep increasing your principal payment on your current loan to see how it effects your total interest outlay. My rule of thumb, even when things were tight, was to make one extra monthly payment per year. This was broken up across 12 months so the hit is really negligible. If you can do more, do more. Watching the principal on your loan drop after a year or two of this is amazing.
Congratulations
pretty sure this is relative:
Congrats. My wife was so happy and appreciative when I paid off her student loans. Wait, no she wasn't.
No debt is only part of the equation. Net worth is the number that matters.
Congrats! I should pay off my bachelor's this year.
ProDarwin said:No debt is only part of the equation. Net worth is the number that matters.
That's a lot easier to accumulate when you're not paying down debt.
They don't call it "debt service" for nothing.
Who hoo! Nice job!
We're going to be paying on my wifes' student loans for the next 15-20 years... The interest rate is too low to justify paying anything more than the minimum until we pay off the house. :(
I paid mine off a long time ago, it's a great feeling :)
californiamilleghia said:Great to hear you are finally "free"
I think the first class in Uni needs to be Finance , well really when you are a High School senior :)
Ohio just added it as a prerequisite to graduate high school. I paid off both mine and my wife's by buying and restoring BBS wheels during the height of the Euro look import tuner days. When we had kids she stayed at home with them so it was rough for a long time. Killing that debt took a load off and I remember it like it was yesterday. Congratulations!
Duke said:ProDarwin said:No debt is only part of the equation. Net worth is the number that matters.
That's a lot easier to accumulate when you're not paying down debt.
Paying down debt IS accumulating net worth. Its just one piece of it though.
Nice work, buddy.
You worked hard and now you deserve to relish the accomplishment.
ProDarwin said:Duke said:ProDarwin said:No debt is only part of the equation. Net worth is the number that matters.
That's a lot easier to accumulate when you're not paying down debt.
Paying down debt IS accumulating net worth. Its just one piece of it though.
OK, either I'm stupid or you're being exceptionally cryptic here.
Congratulations on paying off your student loans!
That being said, debt in and of itself is inherently neither good nor bad. It's all a matter of perspective, and how you do or don't choose use it.
For example: Putting excess funds towards accelerating the payoff of a 3% (or less) debt would mean you get a guaranteed ROI on your money that at best is keeping up with inflation. For some people that's a good thing because guarantees provide peace of mind, for others it's not because long term ROI's with a high statistical probability of significantly exceeding that are relatively easy to find. Neither is actually a 'poor' choice though.
My wife is going to have hers paid off in the next few months. Only problem is that she is thinking about celebrating by going back for a 2nd masters 
Duke said:ProDarwin said:Duke said:ProDarwin said:No debt is only part of the equation. Net worth is the number that matters.
That's a lot easier to accumulate when you're not paying down debt.
Paying down debt IS accumulating net worth. Its just one piece of it though.
OK, either I'm stupid or you're being exceptionally cryptic here.
Paying down debt is effectively the same thing as putting that money into a savings account or CD at the noted interest rate instead.
Congratulations! My son just paid off his loan and he is stoked.
I'm at the other end of it all and it feels good to have no debt.
Paying off those debts really does feel good.
I agree about adding some to your mortgage payment every month. It does add up. I knocked almost 3 years off my 15 year mortgage (paid off in 2013) adding a few hundred extra most months.
That's awesome man. I have been impressed for a long time with you and your family and how much effort you all have put into making your lives into what you want. From what you have said here I know it has been a hard road at times. Good Job!
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