Reality moment

iVillage Member
Registered: 03-27-2005
Reality moment
11
Tue, 12-23-2008 - 9:22am

Well this should be the moment I've been waiting for but the reality of it is a bit overwhelming.

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iVillage Member
Registered: 09-07-2003
In reply to: ma2connor
Tue, 12-23-2008 - 10:21am

**hugs** having a plan and looking at the reality (even while cringing) puts you wayyyy ahead of the curve.


I have 1 small BTDT, which is if you have younger kids, get an account in THEIR name to put your college-bound child's money in to.

Teresa
http://www.affordingpickles.blogspot.com

Avatar for sohappilyme
iVillage Member
Registered: 03-26-2003
In reply to: ma2connor
Tue, 12-23-2008 - 10:34am
I don't have any advice for you, but I wanted to congratulate you on being debt free except the mortgage. That's wonderful!

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Goal #1:

Sarah
iVillage Member
Registered: 03-27-2005
In reply to: ma2connor
Tue, 12-23-2008 - 10:40am

Unfortunalty Connor is an only child so I wouldn't be able to stash away any college money there.


Problem we have is that the school ds is looking into for his BA does not allow for loans of any type and do not

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
In reply to: ma2connor
Tue, 12-23-2008 - 10:44am

Stacy - congrats on being debt-free except the mortgage!!

All my best,
Danni

iVillage Member
Registered: 06-25-2006
In reply to: ma2connor
Tue, 12-23-2008 - 11:27am

Debt free except for your mortgage that is FANTASTIC! My DH and I just bought a house this year with a $365,000 mortgage - that comes out to $2680 a month for the next 30 years! AND that is cheap for the area we live in - Boston MA.


I don't have children so it is hard for me to weigh in objectively on the child college fund versus rounding up on the mortgage question. I would think that either one would be a step in the right directon. We round up on our mortgage - only $2.00 extra each month but when we get the

iVillage Member
Registered: 03-27-2005
In reply to: ma2connor
Tue, 12-23-2008 - 11:46am

That is a good deal for the area.

Avatar for mahopac
iVillage Member
Registered: 07-24-1997
In reply to: ma2connor
Tue, 12-23-2008 - 12:01pm

This is where I don't really understand the Dave Ramsey philosophy. I truly don't see what's wrong with having a mortgage if you plan to be in your house for a long time and your interest rate is low.

The only debt we have is our mortgage ($335,000 @ 5% with 27 years left) and a car loan ($26,000 on a $43,000 vehicle, 3 years @ 0.9%). We plan to keep the car for at least 8 years, and to live in the house for at least another 20 years. Since the house is not a liquid asset - it's what I live in, and even if I left it, I'd still need another one - I don't see the point in tying up my "extra" money by paying off the mortgage early. If I paid off a $300,000 mortgage, then I'd still be living in the same house - I just would have $300,000 less cash. My standard of living wouldn't change in the slightest, just the name on the deed to the house, and I'd have $300,000 less to live on.

As the ad used to say, "'My house is worth a million dollars' is not a retirement plan." Even if someone would buy it at that valuation, you still have to have a roof.

Anyway, no great advice here, other than to plan to pay for college and not fret over paying off the mortgage til 4 years of college are over - which will be in about the blink of an eye. And be grateful that it's only one kid - we have three to send to college, starting in 2010, and we won't be getting a dime of financial aid.

Kelly

iVillage Member
Registered: 04-10-2003
In reply to: ma2connor
Tue, 12-23-2008 - 12:07pm

Hi Stacy! First of all . . . CONGRATS on being (mostly) debt free! Thats amazing!


My advice isn't as a parent, but as a former student. Not sure how much it would help.


My first question is how old is your son? How much time are we talking about?


I never thought


Bex -

iVillage Member
Registered: 03-27-2005
In reply to: ma2connor
Tue, 12-23-2008 - 1:54pm

My first question is how old is your son? How much time are we talking about?


He's 15 and is a sophomore right now.

iVillage Member
Registered: 11-17-2007
In reply to: ma2connor
Tue, 12-23-2008 - 4:53pm

When you bought your home did you notice the amount you would be paying at the end of 30 years It ended up for me three times the amount of the price of the home.


Recently I was talking to someone at the bank and she was telling me they figure interest pretty much like the credit cards do. At least my bank does. So if you look at the extra money in simple terms that 27.00 is really 27.00 times 3 over 30 years 81.00 off the total price of the home mortgage. Or you can look at it a different way that amount each month they

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