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Not debt free any more

Discussion in 'Mopar News' started by Beentherebefore, Apr 22, 2020.

  1. Bob Lincoln

    Bob Lincoln "CHECK FAULT CODES"
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    I refinanced a few times. Originally bought the house with a 30-yr mortgage at something like 5.5%. A few years later, we cut it to a 15-yr mortgage and a lower rate. That did raise it a couple of hundred a month, and we also paid $100 a month extra principal.
    Six years later, with my wife no longer working, we refinanced to a 12-yr mortgage at 4%. Friends said I was crazy to go to 12 years when I had 9 left, but I saved $300 a month principal, which was vital with my wife not working. And so we will be paid off in 19 months, and it will be 20 1/2 years after the original 30-year mortgage. We saved thousands, and when done, it will free up a much-needed $1,000 per month, as my daughter is only a few years from college now.
     
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  2. Dave Z

    Dave Z It's me, Dave
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    Some states have better rules than others. Our state mandates that any extra payments go to principal, so I overpaid whenever I could and knocked years off the mortgage. We also refinanced from a 30-year at around 7%, to a 15-year at around 5.25% — rolling in the 7% student loans, and the 6% car loan. (Yes, it was cheaper to get a new car loan than a student loan; I think it still is.)

    As a side note, my wife had taken the college's advice re student loans, and used Citibank. I used a New Jersey bank which sold it to Sallie Mae. As a result she ended up paying 8.75% when graduating and I paid 7.5%, but Sallie Mae gave me discounts down to 7% for making automatic payments straight from my bank. I loved Sallie Mae... Citibank was scummy. Turned out later Citibank (and others) had paid off student loan officers across the country to divert students to their inferior products. Was very happy when President Clinton started the direct loan program and then when President Obama expanded it. If the federal government is taking the risk, they should get the profit too.
     
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  3. Tony K

    Tony K Active Member

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    Yes! "Gift" in German means "poison." We learned that using Snow White (Schneewitchen) as a memory device (die vergifteter Aepfel.)

    So YOU can track your situation using a baseline. This FICO score vs Bank Score is nothing new. FICO is "a tool" not a be-all end-all. EVERYBODY has their own criteria. They use the big 3 credit agencies then apply certain factors.
     
  4. codypet

    codypet Well-Known Member

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    I knew they did that to an extent. But being 150 pts different was a shock to me. My past experience was 20-30 pts.
     
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  5. Bob Lincoln

    Bob Lincoln "CHECK FAULT CODES"
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    When I saw my 2011 Chrysler 200 become available, I had to act fast to get it, and cash was low. I talked the dealer from $8500 to $7300, put down $1,000 and financed the rest with them just for expediency. It took 3 banks to give a 5-yr loan on what was a nearly 8-yr old car, and the rate was 7.89%. After about 10 months, I found that the interest was still a much higher proportion than it should be of the payment. So I looked up the payoff amount, and when I checked it again 3 days later, it had gone up more. They were compounding every few days, not monthly. So I took a 401K loan to pay off the car loan, and now I own the car outright with no lien, and I owe myself, and pay myself the interest. Even the lost opportunity of growth was a big savings, especially now. And I saved half of the monthly payment just in gas, because my daily driver had been the truck at 19 mpg.
    I haven't bought any gas in 6 weeks now.
     
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  6. Dave Z

    Dave Z It's me, Dave
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    I would assume they would compound daily, which is why the “pay monthly loans every two weeks” trick works for most people. Used car loans are usually crazy expensive. I needed cash a while back to buy a Spirit R/T and they got 8.5% interest until I sold my other car and paid it off at once. At that they wouldn't release the title to me until I threatened to call the state banking commission. Suddenly they found the “lost” document and paid FedEx to overnight it! (Thanks to the branch manager for the suggestion!)
     
  7. AvengerGuy

    AvengerGuy Well-Known Member

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    Have a suggestion for you. Instead of a bank, get with a Savings & Loan or a Credit Union. A Credit Union or Savings & Loan will almost always offer a lower rate to either finance or re-finance an existing loan. Been a Credit Union member for almost 30 years. Far better for me than any bank. My house was financed through a Savings & Loan which was in my neighborhood. Managed to get the mortgage paid off early.

    And, by the way. All that was or is required to become Credit Union member was a deposit of Five dollars. Yes, that's right. No huge amount required. My paycheck is direct deposited into my Credit Union, but that wasn't the case when I first joined. You can stay with your bank, if you like, and have a small amount on deposit with the Credit Union so that you are eligible for lower rate loans, should the need arise.
     
    #27 AvengerGuy, Apr 26, 2020
    Last edited: Apr 26, 2020
  8. Dave Z

    Dave Z It's me, Dave
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    My credit union refused the loan - they didn't do used car loans, period.
    I use a neighborhood S&L now for everything but didn't know them at the time.
    I agree with AvengerGuy in general.
     
  9. aldo90731

    Staff Member Level III Supporter

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    I stopped dealing with the large banks after the financial meltdown. I am a member of three credit unions and between them I meet all my financial needs.

    Credit unions offer lower rates and better service than banks. Best part is knowing that the credit union executives are not using taxpayer money to buy back stock or give themselves ridiculous bonuses.
     
  10. Adventurer55

    Adventurer55 Well-Known Member

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    What kind of certain factors? I ask this, as I would like to refi home loan and possibly use some equity to finish the upstairs of our home. I/we went through a bit of a rough patch a few years back and have worked very hard to reduce debt and other then our house in another year will only have that as debt. My credit score has climbed back into the low 700s on paper at least, but I'm worried that when we're ready, the banks will not.
     
  11. valiant67

    valiant67 ...

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    Interestingly, when I apply for credit, the score they show me is always at least 10 points higher than what any of the monitoring services show me.
     
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  12. Matthew

    Matthew Is pushing for progress!

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    My banking is simple enough I just use one credit union, is the same one I had my first savings and checking account in, also where I got my first credit card at 16 (parents cosigned) but It has meant that even in my 20's I had a longer credit history then most of the people I went to school with/my age. I also feel good there are low frees the interest rates on the cards are low. Although I never ever and never have carried a balance on a card. It is local just my country but has mobile banking app just like the big boys and even added its own in house budgeting software IE think quickbooks where I can create and track my budget and even allows me to upload balances from outside financial institutions (like my 401k) The only big bank I have anything to do with is Myrial Lynch because that is who my works 401k is through so it is a take it or leave it thing, and well I would like to retire some day and I figure a mix of 401k, Union Pension, savings and Social Security should hopefully allow me to do that. It
     
  13. paullybob

    paullybob Well-Known Member

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    I thought I was the only one getting 3 weeks to the gallon right now??:D:D:D
     
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  14. aldo90731

    Staff Member Level III Supporter

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    I paid $1.85/gallon yesterday. Can’t remember the last time gas was this cheap. Must have been in the early 2000s.

    It took a whopping $17 to fill up the Fiat!
     
  15. Dave Z

    Dave Z It's me, Dave
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    As a warning, it might make sense to either put your car onto a float charger or disconnect the battery. We got a cheap Saturn for my son to drive around (at that price you take what you can get) and the battery was darned near death after three weeks of mostly just sitting around. The Mopars seem to do better. The two 2013s have their original batteries and don't seem to have lost much juice. The old Sebring likewise seems OK but I asked my daughter to disconnect the battery if she won't drive it for a week or so. She doesn't have a charger so it would be worse for her if the battery drained.

    VW is reportedly the worst for drained batteries, and what's more, for a few years, a dead battery led to a dead computer.
     
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  16. Dave Z

    Dave Z It's me, Dave
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    Thought you needed premium for the Fiat?

    My bank is so small, the president of the bank started our mortgage application. Best service you can get from a bank. They're larger now but not a megabank by any means. If there's a problem with anything, I get a personal phone call to straighten it out. A couple of times when people wanted to cash checks I wrote to them, they called for verification. Free notary public, 1.7% interest on checking (yes, even today), free ATM, free checks.

    I remember watching New Yorkers on an hour-long line for Citibank where they paid $6/month in fees just to have checking. Fools. The Dime Savings Bank had free checking... if you were willing to use ATMs and go to Brooklyn for personal business (a few minutes on the subway and one of the most beautiful building interiors you'll ever see.)
     
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  17. aldo90731

    Staff Member Level III Supporter

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    Some encouraging news this morning: Sales show early signs of recovery

    JD Power tracks sales real time by hooking up to a network of dealer systems: it is detecting signs of a recovery already.
     
    #37 aldo90731, Apr 27, 2020
    Last edited: Apr 27, 2020
  18. aldo90731

    Staff Member Level III Supporter

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    I do. But the tank maxes out at 10 gallons.
     
  19. Dave Z

    Dave Z It's me, Dave
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    You mean PREMIUM was $1.70? Wow. Over here they charge a 40¢/gallon premium for premium.
     
  20. aldo90731

    Staff Member Level III Supporter

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    VWs and their electronics. My business partner bought a new 2015 VW Passat diesel a few years back. It was a leftover unit unsold due to Dieselgate. Anyway, the electronics have been giving them endless problems. To this day, the backup camera takes so long to engage that they normally are moving forward by the time the electronics figured out what they are trying to do and engages the camera. The audio and climate control systems are similarly slow.

    Apparently the dealers can’t do anything about it. They tell them that’s just how it is. They are not too happy with the car. This is their first VW and likely their last.
     
    Dave Z likes this.

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