Real Estate Question

**BCMtnHound** · 11-20-2019, 01:35 AM

Originally Posted by ULLRismyco-pilot

Thanks for all the advice. Mainly just looking to reduce payments and rate to shift money to pay off higher interest student loan debt. Crazy that the govt and banks charge a higher rate for education than a home. Not struggling to make any payments or anything, just want to get rid of that student loan debt asap.

Loan actually ends up being $50K cheaper just by reducing the rate even with the extended term. Would save $116K if we went 20 year, but paying off principle faster isn't the goal. As I said, we probably won't keep the house that much longer (5-10 yrs), and the equity in the house is already pretty substantial just from the local market increasing.

How much education debt do you have relative to the equity in the house? With the difference in the rates, and if your equity > student debt, then why not refinance your student debt into the mortgage? Or am I missing something?

**Telemarketeer** · 11-20-2019, 08:13 AM

Originally Posted by BCMtnHound

How much education debt do you have relative to the equity in the house? With the difference in the rates, and if your equity > student debt, then why not refinance your student debt into the mortgage? Or am I missing something?

Already did that with a cash out refi a few years ago and paid off a good chunk. Could do it again, but the rate would be higher than 3.8%. We also refinanced a good chunk of debt and got it lower but still not that low. We expect to have the higher interest SL debt paid off in a few years and this will help that goal. Rolling it into the mortgage would cost far more in the long run and it would always be there till we sold. This way we can pay it off in a few years and be done and still have a low mortgage payment. I’ve run the numbers for a lot of different scenarios.

As far as equity vs student loans. We have the equity, but at some threshold the rate goes up substantially. So It doesn’t work out financially.

Just to be clear, we are talking SL debt in the multiple six figures, not just 30-40K like you read horror stories about. Always laugh at those articles.

**liv2ski** · 11-20-2019, 10:43 AM

Originally Posted by ULLRismyco-pilot

Just to be clear, we are talking SL debt in the multiple six figures, not just 30-40K like you read horror stories about. Always laugh at those articles.

Holy Shit! So you are both brain surgeons then? I never understood six figure student loans unless the person is making solid 6 figures going forward.

**glademaster** · 11-20-2019, 10:45 AM

Originally Posted by liv2ski

Holy Shit! So you are both brain surgeons then? I never understood six figure student loans unless the person is making solid 6 figures going forward.

Ok, boomer.

**AdironRider** · 11-20-2019, 10:47 AM

Originally Posted by liv2ski

Holy Shit! So you are both brain surgeons then? I never understood six figure student loans unless the person is making solid 6 figures going forward.

This is TGR, clearly dentistry.

**Telemarketeer** · 11-20-2019, 11:38 AM

Originally Posted by glademaster

Ok, boomer.

^ This.

**skaredshtles** · 11-20-2019, 11:39 AM

Originally Posted by glademaster

Ok, boomer.

I smiled.

**liv2ski** · 11-20-2019, 11:45 AM

Originally Posted by skaredshtles

I smiled.

So did I

Guess my kids scored going to a State Uni on Dad's dime. However, they only make high 5 figures so far.

**iceman** · 11-20-2019, 11:45 AM

Originally Posted by glademaster

Ok, boomer.

Thinking it's dumb to get in big debt for an education in a field that doesn't pay big money is a boomer thing? huh.

**skaredshtles** · 11-20-2019, 11:48 AM

Originally Posted by liv2ski

So did I

Guess my kids scored going to a State Uni on Dad's dime. However, they only make high 5 figures so far.

Probably has something to do with you sitting in a $2 million house, as well.

I'm going to *try* to do my kids a solid by getting them in/out of university without debt at the end... but I'm only going to half-assed try, 'cause I want to retire more than I want them debt-free coming out of college.

**liv2ski** · 11-20-2019, 11:49 AM

Originally Posted by skaredshtles

Probably has something to do with you sitting in a $2 million house, as well.

I'm going to *try* to do my kids a solid by getting them in/out of university without debt at the end... but I'm only going to half-assed try, 'cause I want to retire more than I want them debt-free coming out of college.

Now that made me laugh.

**Telemarketeer** · 11-20-2019, 12:01 PM

Originally Posted by iceman

Thinking it's dumb to get in big debt for an education in a field that doesn't pay big money is a boomer thing? huh.

More the criticizing of non boomers for going deep into debt for education that costs many times what it did when boomers were in college, because colleges, who are run by boomers, keep raising tuition to ridiculous levels to fund their salaries and pensions. That's a boomer thing. But we aren't millennials so we are paying our debts back, without expecting any kind of bailout, so there's that.

**iceman** · 11-20-2019, 12:06 PM

Yeah no I was more talking to glade with the "ok boomer" thing on that one.

**liv2ski** · 11-20-2019, 01:07 PM

Originally Posted by ULLRismyco-pilot

More the criticizing of non boomers for going deep into debt for education that costs many times what it did when boomers were in college, because colleges, who are run by boomers, keep raising tuition to ridiculous levels to fund their salaries and pensions. That's a boomer thing. But we aren't millennials so we are paying our debts back, without expecting any kind of bailout, so there's that.

I have to call "Bull Shit". The thing is you obviously did receive good financial advice (maybe it wasn't available to you) like this: Go to a JC the first two years (=cheap) and then transfer to your Uni while getting a solid degree in a field you can stand and that pays well, while living at home, all on the parents dime. I will admit my youngest went away to school out the gate, which cost us more, hence why her older sister received more financial help to buy her 1st home. I try and keep it all equal.

I am not criticizing you. We all have different situations and my kids have been pretty lucky (as have we) to be in much better situations than most. I apologize if I annoyed you.

**skaredshtles** · 11-20-2019, 01:14 PM

Originally Posted by liv2ski

I have to call "Bull Shit". The thing is you obviously did receive good financial advice (maybe it wasn't available to you) like this: Go to a JC the first two years (=cheap) and then transfer to your Uni while getting a solid degree in a field you can stand and that pays well, while living at home, all on the parents dime. I will admit my youngest went away to school out the gate, which cost us more, hence why her older sister received more financial help to buy her 1st home. I try and keep it all equal.

I am not criticizing you. We all have different situations and my kids have been pretty lucky (as have we) to be in much better situations than most. I apologize if I annoyed you.

This is *EXACTLY* why glade said what he did.

**MiddleOfNight** · 11-20-2019, 01:46 PM

Originally Posted by liv2ski

Go to a JC the first two years (=cheap) and then transfer to your Uni

+1

Then go to state school.
Not that long ago, State was 1500/semester for 12+ credits. Take 18 credits. Go over summer. Work part time.

Back OT, escaping school with no debt is the main reason I was able to ever enter any real estate market. Having note on a degree and a property would be tough. Not possible for me.

**El Chupacabra** · 11-20-2019, 01:53 PM

Originally Posted by iceman

Thinking it's dumb to get in big debt for an education in a field that doesn't pay big money is a boomer thing? huh.

As a GenX-er, I agree.

But we hashed all this out in some other thread, where the topic of gargantuan student loans came up, and there were many willing to defend going into $100K+ student loan debt.

**Telemarketeer** · 11-20-2019, 02:05 PM

Originally Posted by liv2ski

I have to call "Bull Shit". The thing is you obviously did receive good financial advice (maybe it wasn't available to you) like this: Go to a JC the first two years (=cheap) and then transfer to your Uni while getting a solid degree in a field you can stand and that pays well, while living at home, all on the parents dime. I will admit my youngest went away to school out the gate, which cost us more, hence why her older sister received more financial help to buy her 1st home. I try and keep it all equal.

I am not criticizing you. We all have different situations and my kids have been pretty lucky (as have we) to be in much better situations than most. I apologize if I annoyed you.

Making a lot of assumptions there, like a boomer.

Look, we aren't struggling to pay our SL debt, just trying to make sound financial decisions to expedite paying off this debt and managing our mortgage(s) to do that. We are actually doing pretty well despite the loan debt, once it is gone, we'll be doing really well.

**glademaster** · 11-20-2019, 02:22 PM

Originally Posted by iceman

Thinking it's dumb to get in big debt for an education in a field that doesn't pay big money is a boomer thing? huh.

If that's your response, I stand by my initial statement. No need to expound.

**liv2ski** · 11-20-2019, 02:58 PM

Originally Posted by ULLRismyco-pilot

Making a lot of assumptions there, like a boomer.

I just notice I misspoke, I should of said; The thing is you obviously did NOT receive good financial advice. How is that for assumptions? However, this comment made it clear I was not judging you, I was just appalled at your student loan debt. Maybe you should vote for Liz? I am not criticizing you. We all have different situations and my kids have been pretty lucky (as have we) to be in much better situations than most. I apologize if I annoyed you.

**Telemarketeer** · 11-20-2019, 03:08 PM

Originally Posted by liv2ski

I just notice I misspoke, I should of said; The thing is you obviously did NOT receive good financial advice. How is that for assumptions? However, this comment made it clear I was not judging you, I was just appalled at your student loan debt. Maybe you should vote for Liz? I am not criticizing you. We all have different situations and my kids have been pretty lucky (as have we) to be in much better situations than most. I apologize if I annoyed you.

Well, Liz's tuition forgiveness plan would not include us due to income limits, if that makes it a little more clear for you. However, we could hedge our bets and just take a year off work after she gets elected and hope that she can pass her plan. Hmm.

**dunfree** · 11-20-2019, 03:18 PM

leveraged real-estate debt is great, leveraged education debt is bad, now there's a trustfund dentist take on things.

**Stu Gotz** · 11-20-2019, 03:45 PM

Originally Posted by ULLRismyco-pilot

Well, Liz's tuition forgiveness plan would not include us due to income limits, if that makes it a little more clear for you. However, we could hedge our bets and just take a year off work after she gets elected and hope that she can pass her plan. Hmm.

I think any tuition assistance/forgiveness plan is going to be DOA until millennials start putting their own en masse in Congress. There are just too many folks out there who think “Johnny should have gone to UConn if he couldn’t afford Wesleyan.”