Author Topic: Pay down mortgage principal (variable loan-self employed)  (Read 231 times)

zoochadookdook

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Pay down mortgage principal (variable loan-self employed)
« on: January 18, 2019, 11:32:03 PM »
About me:
26  (27 in may)
Assets:
Cash/assets for sale currently/stocks/bitcoin: $66,300 (1400 stocks-etc/the rest in for sale assets and bank/cash)
Roth IRA (vanguard 2060 target date) $21,800
 House: 85,000 equity (200k mrsp, I owe 115k)
Assorted house stuff (garage gym/tvs/all the other stuff/car): 5000?
Debt:
Student loans- 13200$ student loans (I graduate in fall 2018 and no interest accrues until 6 months from january at around 4%). I took them because they were interest free. Haven't used them really aside from making that lump ira easier.
Mortgage: 115k variable loan at fed prime rate
 Credit cards: currently 700$ (they pay off every month)

Current Income:
-self employed llc. 30k a year plus extra (sometimes I have a renter in the house @600/month,-did 45k last year but that was a good one
Expenses:
monthly mortgage 584$
property Taxes/home insurance: around 320 a month
Utilities around 300.
Roth ira 480 or so
Extra expenses: Dog vet bills Girlfriend Gas food etc (say 200)
Total: around 1800/1900 a month

I've been out of the nest since I turned 18 and did a stint bouncing around from house to house while working in order to save money. Hence why my assets (cash and such) are high for the income level. I also drive a junky car, buy cheap groceries, etc. My credit cards are always used for max categories and paid off monthly. I save buying on eBay sales/preowned when possible.

Mortgage wise I haven't had enough after write offs to qualify on my own. My father took a loan against his 401k-i put 20% down and that's how we purchased the home in 2015. The issue is this rate is tied to the prime rateMileage write offs are huge as I average around 30k a year driven at .52 a mile in my junker Honda. I'm also considering putting that lower apr student loan $13,200 into the mortgage right now. It doesn't start collecting interest until July 2019 so I'm having trouble seeing the downside at 4%. Will be transferring money monthly this year to show consistent income but it still may be an issue. To be clear I have 40k after emergency fund (8-10k), business account inflow outflow (10k), personal checking for mortgage bills etc (5-7k) to either invest or pay down mortgage/student debt. Just trying to figure out the best way to do it.

I just graduated school and am seeking professional employment starting between 50-60k. That should clear it up but until then I need to try to be proactive.

Dicey

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Re: Pay down mortgage principal (variable loan-self employed)
« Reply #1 on: January 19, 2019, 12:32:55 AM »
Reading through this thread will help you make the best decision for your situation.

https://forum.mrmoneymustache.com/throw-down-the-gauntlet/dont-payoff-your-mortgage-club/