Mortgage/Credit Score

There's many more ways for business owners to shield money from taxes(legally) via profit sharing 401k's and then paired with cash balance plans if possible. If you're eligible or in position to sock away money that those plans will allow, then you put off as much of your debt as humanly possible and fund those. Kinda complicated but no better way to invest for business owners, partners, etc...

 

"Worry" might not be the right terminology. I just don't want it, and don't want to have to pay the interest for many more years. Also because, like I said, we will likely be moving soon. I don't to have to worry about 2 mortgages. Id rather this one be free and clear. Then we can either sell it and pay cash for something we move to next. Or we take a mortgage out on the new one, and won't care how quick this house sells. There will be no pressure or rush. Then when it does finally sell, we can just pay the new one off.

If I look at it logically, I really don't have a true reason to be worried about it. I just know my dad has always told me the sooner you can own your home, the better.

 

Ive embraced that principle. I own everything. I dont even have a credit score because Ive paid cash.

Staying in the debt game to satisfy money overlords is not appealing to me one bit.

 

Typical cop. "This is my town!"

 

As a former car dealer, my advice would be to let them believe that you plan to finance the car. You will get a better price on it.
Even with interest rate as low as they are, the dealer participation in a substantial unpaid balance will amount to a tidy profit.
You can "change your mind" in the finance office.
I have an 850 beacon score, and it will get the dealer's attention. Here's why:
A typical dealer isn't going to try to hit a home run with a customer with top-tier credit. Where they WILL swing for the fences is with
a marginal customer. They can absolutely crush the mortal shit out of somebody who barely qualifies.
The reason they want the top-tier customer is that they send all of their loan paper to one lender. The extra-strong client makes the lender more willing to take a little more risk with a marginal customer sent in at the same time.

 

That's some good info.

Lemme ask you this, how many points does your credit drop when it gets run?

Reason i ask is because i always just go to my bank and get that blank pre-approved cashiers check. Ive done that same thing with 4-5 vehicles, and the RV. They know me, and it is easy. When I walk in, Linda will just be like "is it that time again already, how much do you want?".

BUT...it might be worth it to see what kind of finance deal Audi is running, and then compare that with my bank's deal. But in doing that, it means my credit will be ran multiple times. Will that hurt it enough to matter?

 

No.

 

My kingdom is small but it is mine.

 

I think it all depends on what your haul ass plan is and what your contingencies are for executing it.

The United States isn’t doing too well and isn’t going to come out of the spiral down the drain, if your plan is to haul ass the fuck out of here why even pay off the mortgage?

If your trigger for GTFO is the shit truly hitting the fan, you’re going to have your personal money tied up in an illiquid asset. No one is going to be buying houses, and even if they are you’re going to take a huge haircut. Why not buy property and income producing assets in another country instead of paying off the mortgage? If shit truly blows up, what you do is walk away from the mortgage and fuck the bank in the ass. If there’s still a functioning US government, the bank will be bailed out with more of that overheating printing press. If they don’t get bailed out and collapse completely, who gives a shit anyway? If you pay it off, all of the risk is yours.

 

Having a mortgage is fine if everything goes as planned, what happens if the market tanks,or the economy goes south,or you have health problems, and can't pay the mortgage. A 10 or 15 year is a good compromise,if you can't afford it don't buy it.

 

Lol

 

You could purchase a disability policy... I was amused at my last employee benefits bazaar... there were 8 different short term disability insurance providers. One could go broke paying all those premiums...lol

 

It will drop 10 points for like 2 months. Non-issue.

 

FWIW the ATL airport has direct connections to many places, both in the US and abroad. Other places not too much.

It's not as attractive, but access to the ATL airport is much easier if you locate on the southside. Much, much easier.

Look at Peachtree City. There may be something suitable for you there.

OH ... and one hour to Road Atl, two hrs to TGPR, etc., if that is still important to you.

 

Hard inquiries are in 'buckets'. 1-3, 4-7, etc.....If you have 2 inquiries let's say on TU (transunion), a 3rd inquiry may not move your score at all. If it does, it will only be 1-3 points. Inquiries stay on the credit bureau that was pulled for 2 yrs, but after 1 yr, they have no affect on your score/file.

FICO's algorithm will see/detect when somebody is car shopping. Dealers/banks should categorize an application/credit pull as such so that when somebody drops their SS # 30 times while rate shopping, FICO will count that as 1 hard inquiry. Having said that, often times that doesn't happen and a person might get smacked with 10 hard inquiries.

Lots of inquiries aren't that important as long as your credit file supports it. Somebody that has poor credit, low income and is trying to qualify for anything and everything, then those inquiries are red flags to potential lenders.

I'm like you in that i just go to my CU if i need a loan. I go bike shopping with financing already secured.

 

Yes and no. Everybody thinks you get a better deal if you pay cash, nope! Financing is a big profit center for the dealer. I say no to changing your mind, at least telling them. The only thing I would ask is how manny payments you have to make to not get charged back for a rebate.

I was that marginal customer but I think I used it to my advantage. When I bought my truck I had some old slow pays from being young, dumb, and overextended then hurting myself at the track. I walked in and pretended I wasn’t sure that I could even buy. I was in the high 600’s but had a good relationship with my bank and had a blank check at 1.9% in my pocket. I think I did good on the front because they figured they were going to hammer me in finance. I also got $1,000 rebate for financing with Ford at 8%, they were probably making 3-4 points, then 45 days later my bank sent them a check.

It definitely is worth a look. It won’t drop your score enough to matter but I wouldn’t even let them run it if it worries you. Just tell them you are 800 plus with stupid low DTI and they should be tripping over themselves to tell you what their best rates are.

 

Im not so sure debt to income matters that much in this case.

I’ve been 2:1 with student loans and still in the 800s. Again, in OP instance, , non-issue. You seem likely you’re in a position that non of this matters. Do whatever you want.

 

Yep though for some people debt makes sense as the way a company owner can do stuff is FAR different than an individual. However as an individual the peace of mind from low risk has impacts in other areas of life. For instance when a project was getting shut down and I was looking to be nuked. Due to having cash in the bank and no debt I was able to wait it out including turning down an offer at another company. Years later I am happy and things did work out. Someone that was living check to check with debt would have been forced along a decision path. To each their own but it is not all math, it is 'personal' finance as Ramsey points out (and no I do not agree with everything he says).

Of course those who are only liking the math (ignoring risk) should be 100% mortgaged investing whatever equity they can extract. Most people don't periodically extract equity soooooo.....

Extrapolating what I am reading in GG posts makes me suspect living paid off everything would likely make him the most content. In the end that matters more than how much you do or don't accumulate. Other people would have different desires on what makes them happy.

 

Thanks, thats some great info.

Yeah I always go through ATL no matter where my final destination is. I always go from the house, to ATL, to whereever. Living in close proximity to ATL would make life super easy, not to mention cut back on my overall travel time over the course of a year. Good call.