Author Topic: Mustachian People Problems (just for fun)  (Read 3349893 times)

Taran Wanderer

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Re: Mustachian People Problems (just for fun)
« Reply #8050 on: October 29, 2020, 10:26:58 AM »
I always put the fuel stabilizer in the gas can as soon as I get home. Funny story, though... my ten year old daughter had to show me an easier way to get the stabilizer liquid into the measuring part of the container. You open the lid and squeeze the main bottle. It’s like magic. I had been playing this tilt and shake game for years.

Sometimes I feel like an idiot...

justchristine

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Re: Mustachian People Problems (just for fun)
« Reply #8051 on: October 29, 2020, 02:52:16 PM »
Yesterday I logged in to Vanguard to invest in my after tax account.  I got a prompt to transition my Roth and rollover ira to the new brokerage account structure.  Since I'll have to do it eventually, I went ahead and kicked off the transition process.  Today I logged i to Personal Capital to see where this weeks market gyrations put me net worth-wise.  I about had a heart attack when I saw my total was over a million.  I completely forgot about yesterday's transactions. It took me a minute to realize it was because Vanguard was still in the middle of switching my accounts and my Roth and Rollover IRAs were being counted twice.  Being a fake millionaire was nice for that minute before my memory kicked in ;)
I can't wait to join the double comma club for real!

SwordGuy

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Re: Mustachian People Problems (just for fun)
« Reply #8052 on: October 29, 2020, 03:02:46 PM »
Yesterday I logged in to Vanguard to invest in my after tax account.  I got a prompt to transition my Roth and rollover ira to the new brokerage account structure.  Since I'll have to do it eventually, I went ahead and kicked off the transition process.  Today I logged i to Personal Capital to see where this weeks market gyrations put me net worth-wise.  I about had a heart attack when I saw my total was over a million.  I completely forgot about yesterday's transactions. It took me a minute to realize it was because Vanguard was still in the middle of switching my accounts and my Roth and Rollover IRAs were being counted twice.  Being a fake millionaire was nice for that minute before my memory kicked in ;)
I can't wait to join the double comma club for real!

I felt your excitement about a week ago.   I set up my accounts in Quicken and downloaded the balances and recent transactions.   For one 401K provider, it entered my current balance as the starting balance and then created additional transactions to add my current balance to the account, doubling those balances.   An extra half a million showed up!   

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Re: Mustachian People Problems (just for fun)
« Reply #8053 on: October 29, 2020, 03:36:20 PM »
Yesterday I logged in to Vanguard to invest in my after tax account.  I got a prompt to transition my Roth and rollover ira to the new brokerage account structure.  Since I'll have to do it eventually, I went ahead and kicked off the transition process.  Today I logged i to Personal Capital to see where this weeks market gyrations put me net worth-wise.  I about had a heart attack when I saw my total was over a million.  I completely forgot about yesterday's transactions. It took me a minute to realize it was because Vanguard was still in the middle of switching my accounts and my Roth and Rollover IRAs were being counted twice.  Being a fake millionaire was nice for that minute before my memory kicked in ;)
I can't wait to join the double comma club for real!

I felt your excitement about a week ago.   I set up my accounts in Quicken and downloaded the balances and recent transactions.   For one 401K provider, it entered my current balance as the starting balance and then created additional transactions to add my current balance to the account, doubling those balances.   An extra half a million showed up!   

DW and I have our separate retirement accounts at Vanguard, and last year we opened a joint account for taxable savings. The joint account is visible to either of us when we log into Vanguard... Which means Mint sees it twice. It didn't really matter at first, but the account has grown to a relevant percentage of our net worth and Mint is doubling that. Eventually I created a manual "debt" to correct for it.

SwordGuy

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Re: Mustachian People Problems (just for fun)
« Reply #8054 on: October 29, 2020, 05:23:07 PM »
Yesterday I logged in to Vanguard to invest in my after tax account.  I got a prompt to transition my Roth and rollover ira to the new brokerage account structure.  Since I'll have to do it eventually, I went ahead and kicked off the transition process.  Today I logged i to Personal Capital to see where this weeks market gyrations put me net worth-wise.  I about had a heart attack when I saw my total was over a million.  I completely forgot about yesterday's transactions. It took me a minute to realize it was because Vanguard was still in the middle of switching my accounts and my Roth and Rollover IRAs were being counted twice.  Being a fake millionaire was nice for that minute before my memory kicked in ;)
I can't wait to join the double comma club for real!

I felt your excitement about a week ago.   I set up my accounts in Quicken and downloaded the balances and recent transactions.   For one 401K provider, it entered my current balance as the starting balance and then created additional transactions to add my current balance to the account, doubling those balances.   An extra half a million showed up!   

DW and I have our separate retirement accounts at Vanguard, and last year we opened a joint account for taxable savings. The joint account is visible to either of us when we log into Vanguard... Which means Mint sees it twice. It didn't really matter at first, but the account has grown to a relevant percentage of our net worth and Mint is doubling that. Eventually I created a manual "debt" to correct for it.

Interesting!   Quicken was smart enough not to do that for us.

dragoncar

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Re: Mustachian People Problems (just for fun)
« Reply #8055 on: October 29, 2020, 07:37:13 PM »
Yesterday I logged in to Vanguard to invest in my after tax account.  I got a prompt to transition my Roth and rollover ira to the new brokerage account structure.  Since I'll have to do it eventually, I went ahead and kicked off the transition process.  Today I logged i to Personal Capital to see where this weeks market gyrations put me net worth-wise.  I about had a heart attack when I saw my total was over a million.  I completely forgot about yesterday's transactions. It took me a minute to realize it was because Vanguard was still in the middle of switching my accounts and my Roth and Rollover IRAs were being counted twice.  Being a fake millionaire was nice for that minute before my memory kicked in ;)
I can't wait to join the double comma club for real!

I felt your excitement about a week ago.   I set up my accounts in Quicken and downloaded the balances and recent transactions.   For one 401K provider, it entered my current balance as the starting balance and then created additional transactions to add my current balance to the account, doubling those balances.   An extra half a million showed up!   

PC is becoming hot garbage.  I have multiple accounts that will stop working, then come back later but there’s 50 accounts each with the same total balance so I never know which day I’m going to wake up with 8 figures

(It’ll be like “401k-balance” “401k-recent” “401k-holdings” “401k-transactions” and so on.  Then a few days later they disappear or I delete them but they stop updating again

fuzzy math

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Re: Mustachian People Problems (just for fun)
« Reply #8056 on: November 01, 2020, 07:01:25 AM »
Yesterday I logged in to Vanguard to invest in my after tax account.  I got a prompt to transition my Roth and rollover ira to the new brokerage account structure.  Since I'll have to do it eventually, I went ahead and kicked off the transition process.  Today I logged i to Personal Capital to see where this weeks market gyrations put me net worth-wise.  I about had a heart attack when I saw my total was over a million.  I completely forgot about yesterday's transactions. It took me a minute to realize it was because Vanguard was still in the middle of switching my accounts and my Roth and Rollover IRAs were being counted twice.  Being a fake millionaire was nice for that minute before my memory kicked in ;)
I can't wait to join the double comma club for real!

My biggest beef with PC is that when you go to close the old account, there never seems to be a perfect day to list it as closed on. If you do it on the day you still have a balance, it artificially marks your balance as high. if you do it as the day it read $0, it leaves a huge dip in your daily balances and counts the new account as a deposit, artificially inflating your savings rate for the whole year. Once you mark it closed, I don't think you can edit the date either.

Sibley

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Re: Mustachian People Problems (just for fun)
« Reply #8057 on: November 01, 2020, 02:52:22 PM »
Hit a milestone NW in June. Just noticed it today. Like, really, I've been doing my monthly summation every month but do you think I actually realize that I hit a milestone?!? Nope. Not until I'm halfway to the next one.

I blame the pandemic.

BicycleB

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Re: Mustachian People Problems (just for fun)
« Reply #8058 on: November 01, 2020, 06:39:14 PM »
Hit a milestone NW in June. Just noticed it today. Like, really, I've been doing my monthly summation every month but do you think I actually realize that I hit a milestone?!? Nope. Not until I'm halfway to the next one.

I blame the pandemic.

LOL

Uturn

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Re: Mustachian People Problems (just for fun)
« Reply #8059 on: November 02, 2020, 06:03:29 AM »
I got an alert from TurboTax that my credit score has dropped 20 points.  So I looked it up and yes, it is down to 780.  The reason, my only debt is time between a CC purchase and the next payday when I pay it off.  I'm starting to look for a house to buy, so maybe a mortgage would push it back up a bit.

ixtap

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Re: Mustachian People Problems (just for fun)
« Reply #8060 on: November 02, 2020, 06:47:48 AM »
I got an alert from TurboTax that my credit score has dropped 20 points.  So I looked it up and yes, it is down to 780.  The reason, my only debt is time between a CC purchase and the next payday when I pay it off.  I'm starting to look for a house to buy, so maybe a mortgage would push it back up a bit.

Do you wait for the statement? Our only debt is revolving cc and we each have high scores.

Uturn

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Re: Mustachian People Problems (just for fun)
« Reply #8061 on: November 02, 2020, 06:52:15 AM »
Do you wait for the statement? Our only debt is revolving cc and we each have high scores.

Nope, I usually pay it on Friday, sometimes it might slip to the following week.

sherr

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Re: Mustachian People Problems (just for fun)
« Reply #8062 on: November 02, 2020, 07:42:00 AM »
Do you wait for the statement? Our only debt is revolving cc and we each have high scores.

Nope, I usually pay it on Friday, sometimes it might slip to the following week.

Consider waiting until at least the monthly statement to pay it. Often the cashback or airline miles or whatever are calculated based on what the statement says. And that's what's reported to the credit bureaus, so that's what affects your credit score. And it doesn't cost a single penny to wait, you only pay interest if you don't pay the whole bill by the due date.

PMG

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Re: Mustachian People Problems (just for fun)
« Reply #8063 on: November 02, 2020, 07:45:44 AM »
780 sounds like a high score to me. I think that’s why it’s on this thread.

One MPP I’ve noticed over and over is that when people post their amusing little “problems” here we always try to fix them whether they need fixing or not. Truly a generous community!

ixtap

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Re: Mustachian People Problems (just for fun)
« Reply #8064 on: November 02, 2020, 07:50:13 AM »
780 sounds like a high score to me. I think that’s why it’s on this thread.

One MPP I’ve noticed over and over is that when people post their amusing little “problems” here we always try to fix them whether they need fixing or not. Truly a generous community!

It is high, but is it high enough to get the best rate for that anticipated mortgage?

dragoncar

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Re: Mustachian People Problems (just for fun)
« Reply #8065 on: November 02, 2020, 09:27:55 AM »
780 sounds like a high score to me. I think that’s why it’s on this thread.

One MPP I’ve noticed over and over is that when people post their amusing little “problems” here we always try to fix them whether they need fixing or not. Truly a generous community!

It is high, but is it high enough to get the best rate for that anticipated mortgage?

I thought anything over 720 was pretty much the best rate but i do believe you can get slightly better.  More importantly you have wiggle room when it drops between your first hard pull and the later soft pull they do before closing

DadJokes

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Re: Mustachian People Problems (just for fun)
« Reply #8066 on: November 02, 2020, 09:30:27 AM »
780 sounds like a high score to me. I think that’s why it’s on this thread.

One MPP I’ve noticed over and over is that when people post their amusing little “problems” here we always try to fix them whether they need fixing or not. Truly a generous community!

It is high, but is it high enough to get the best rate for that anticipated mortgage?

I thought anything over 720 was pretty much the best rate but i do believe you can get slightly better.  More importantly you have wiggle room when it drops between your first hard pull and the later soft pull they do before closing

Due to credit card churning, I don't think my score will ever exceed 750. Having a dozen recent inquiries on the credit report at a time looks a little ugly.

However, I'm fairly certain that I got as good of a rate as I could have back when I refinanced, and my score was around 720 at the time.

markbike528CBX

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Re: Mustachian People Problems (just for fun)
« Reply #8067 on: November 02, 2020, 10:21:03 AM »
MPP:  my taxes are too low.   I can't use a $150 tax credit for a new furnace because that exceeds my taxes.

Catbert

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Re: Mustachian People Problems (just for fun)
« Reply #8068 on: November 02, 2020, 10:29:40 AM »
MPP:  my taxes are too low.   I can't use a $150 tax credit for a new furnace because that exceeds my taxes.

Harvest capital gains?  Roth conversions?

markbike528CBX

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Re: Mustachian People Problems (just for fun)
« Reply #8069 on: November 02, 2020, 11:28:03 AM »
MPP:  my taxes are too low.   I can't use a $150 tax credit for a new furnace because that exceeds my taxes.

Harvest capital gains?  Roth conversions?

I've already got a IRA SEPP 72(t) that fills up the taxable.   I've harvested gains already.  I figure I'm close enough to 0 taxes that I'll not worry about it.    Just an example of a MPP.
If the market hits a record high again, I might do some more tax gain harvesting.

honeybbq

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Re: Mustachian People Problems (just for fun)
« Reply #8070 on: November 02, 2020, 11:37:10 AM »
I got an alert from TurboTax that my credit score has dropped 20 points.  So I looked it up and yes, it is down to 780.  The reason, my only debt is time between a CC purchase and the next payday when I pay it off.  I'm starting to look for a house to buy, so maybe a mortgage would push it back up a bit.

I refinanced my mortgage earlier this year. After the close of the refi, I noticed my credit score dropped. Upon further examination, it was because I refinanced my loan and now my loan amount was almost the same as the amount due (as in, I had a (eg) 500k loan and I owed 498k). The funny part is we have a million in equity in our house. But because we refinanced the numbers are how they are - my score dropped. Stupid, stupid, stupid.


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Re: Mustachian People Problems (just for fun)
« Reply #8071 on: November 02, 2020, 11:54:14 AM »
I got an alert from TurboTax that my credit score has dropped 20 points.  So I looked it up and yes, it is down to 780.  The reason, my only debt is time between a CC purchase and the next payday when I pay it off.  I'm starting to look for a house to buy, so maybe a mortgage would push it back up a bit.

I refinanced my mortgage earlier this year. After the close of the refi, I noticed my credit score dropped. Upon further examination, it was because I refinanced my loan and now my loan amount was almost the same as the amount due (as in, I had a (eg) 500k loan and I owed 498k). The funny part is we have a million in equity in our house. But because we refinanced the numbers are how they are - my score dropped. Stupid, stupid, stupid.
A lot of this credit scoring is stupid for a mustachian, because it's based on statistics. And MMMers are always statistical outliers.

I do not understand that though. You had a loan for 500K and now you still have one for 500K and that lowered your score?

honeybbq

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Re: Mustachian People Problems (just for fun)
« Reply #8072 on: November 02, 2020, 12:24:59 PM »
I got an alert from TurboTax that my credit score has dropped 20 points.  So I looked it up and yes, it is down to 780.  The reason, my only debt is time between a CC purchase and the next payday when I pay it off.  I'm starting to look for a house to buy, so maybe a mortgage would push it back up a bit.

I refinanced my mortgage earlier this year. After the close of the refi, I noticed my credit score dropped. Upon further examination, it was because I refinanced my loan and now my loan amount was almost the same as the amount due (as in, I had a (eg) 500k loan and I owed 498k). The funny part is we have a million in equity in our house. But because we refinanced the numbers are how they are - my score dropped. Stupid, stupid, stupid.
A lot of this credit scoring is stupid for a mustachian, because it's based on statistics. And MMMers are always statistical outliers.

I do not understand that though. You had a loan for 500K and now you still have one for 500K and that lowered your score?

No - we've been here for several years. I don't even remember what our original loan was. Maybe 800k. We've paid it down to around 500k so that's what we refinanced our new loan for - a new loan of 500k with a lower APR.

And yes, I couldn't care less about my score- not doing anything with it for a long time hopefully.

Taran Wanderer

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Re: Mustachian People Problems (just for fun)
« Reply #8073 on: November 02, 2020, 12:44:33 PM »
I’m curious about the obsession with credit scores. DW and I have great scores with a combination of mortgage, credit cards (paid off in full each month), a car loan every once in a while over the years (paid off early), and money in the bank. Getting a loan has always been super easy, even years ago at the beginning of our FI journey. A few times our scores have crept up close to “perfect”, but they never stay there even as our finances strengthen. At the same time, our scores are high enough that they don’t seem to hold us back for, getting the best rates.

Is there more to “perfect” scores than I realize, or have I been winning the game for so long that I have forgotten that it’s hard when you’re just starting to play?

MudPuppy

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Re: Mustachian People Problems (just for fun)
« Reply #8074 on: November 02, 2020, 01:18:54 PM »
I think it can be hard when you have shorter history or lower income or a higher debt to income ratio

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Re: Mustachian People Problems (just for fun)
« Reply #8075 on: November 02, 2020, 01:50:29 PM »
I got an alert from TurboTax that my credit score has dropped 20 points.  So I looked it up and yes, it is down to 780.  The reason, my only debt is time between a CC purchase and the next payday when I pay it off.  I'm starting to look for a house to buy, so maybe a mortgage would push it back up a bit.

I refinanced my mortgage earlier this year. After the close of the refi, I noticed my credit score dropped. Upon further examination, it was because I refinanced my loan and now my loan amount was almost the same as the amount due (as in, I had a (eg) 500k loan and I owed 498k). The funny part is we have a million in equity in our house. But because we refinanced the numbers are how they are - my score dropped. Stupid, stupid, stupid.
A lot of this credit scoring is stupid for a mustachian, because it's based on statistics. And MMMers are always statistical outliers.

I do not understand that though. You had a loan for 500K and now you still have one for 500K and that lowered your score?

Which does have the advantage of giving us 162 pages and counting of MPPs...

AO1FireTo

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Re: Mustachian People Problems (just for fun)
« Reply #8076 on: November 02, 2020, 06:45:15 PM »
Here is my MPP,

We bought a condo for my wife's parents, we put down 70% on the purchase with the plan to pay it off very quickly.  It was so hard to get the mortgage for the 30% because of all the work I had to do to actually prove I had the money.  The mortgage agent told me it's a lot easier when people only put down like 10%.  BTW fully paid off now, I hate debt.


sui generis

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Re: Mustachian People Problems (just for fun)
« Reply #8077 on: November 02, 2020, 07:08:34 PM »
Here is my MPP,

We bought a condo for my wife's parents, we put down 70% on the purchase with the plan to pay it off very quickly.  It was so hard to get the mortgage for the 30% because of all the work I had to do to actually prove I had the money.  The mortgage agent told me it's a lot easier when people only put down like 10%.  BTW fully paid off now, I hate debt.

What would have happened if you'd only put 10% down, then paid another 60% on the day after it closed?

AO1FireTo

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Re: Mustachian People Problems (just for fun)
« Reply #8078 on: November 02, 2020, 09:12:04 PM »
Here is my MPP,

We bought a condo for my wife's parents, we put down 70% on the purchase with the plan to pay it off very quickly.  It was so hard to get the mortgage for the 30% because of all the work I had to do to actually prove I had the money.  The mortgage agent told me it's a lot easier when people only put down like 10%.  BTW fully paid off now, I hate debt.

What would have happened if you'd only put 10% down, then paid another 60% on the day after it closed?

There are limits on how much principle repayments you can do each year.  So I wouldn't have been able to do the full amount without a three month penalty.  It was really strange, I thought it would be easy.  This guy has the money approved.  It was more like how the @$@#$ does he have 70% to put down.

Plina

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Re: Mustachian People Problems (just for fun)
« Reply #8079 on: November 02, 2020, 10:57:33 PM »
Here is my MPP,

We bought a condo for my wife's parents, we put down 70% on the purchase with the plan to pay it off very quickly.  It was so hard to get the mortgage for the 30% because of all the work I had to do to actually prove I had the money.  The mortgage agent told me it's a lot easier when people only put down like 10%.  BTW fully paid off now, I hate debt.

What would have happened if you'd only put 10% down, then paid another 60% on the day after it closed?

There are limits on how much principle repayments you can do each year.  So I wouldn't have been able to do the full amount without a three month penalty.  It was really strange, I thought it would be easy.  This guy has the money approved.  It was more like how the @$@#$ does he have 70% to put down.

Year, having money is suspicious. Due to money laundering laws the banks here are more like having customer annoying services than the little customer services they had previoulsy. I was transfering several large sums to different accounts online brockerage accounts, The second or third transfer was blocked. I had to go through the bank web site and make a transfer with a two factor authorization instead of the normal route.

Loren Ver

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Re: Mustachian People Problems (just for fun)
« Reply #8080 on: November 08, 2020, 07:32:26 AM »
[Wonderful life lessons. Once you learn and accept that you are different, it frees you.
/quote]

@Loren Ver , you are spot on correct.

My wife and son used to suffer from what I call "Un-coolitus", the fear of not being seen to be cool.

It took awhile, but they finally learned that the coolest thing in the world is someone having a truly awesome time whilst not harming anyone in the process.   So much happier!

@SwordGuy Being mainstream cool is overrated.  Very few (very boring, in my opinion) people get to determine what is cool.  What's the fun in that?  Being happy and free wins every time.  :).  Or one can just make up their own definition of 'cool" and just ignore the mainstream cool kids.  You know, what ever works, being free and all :D. 

LennStar

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Re: Mustachian People Problems (just for fun)
« Reply #8081 on: November 08, 2020, 08:58:24 AM »
[Wonderful life lessons. Once you learn and accept that you are different, it frees you.

@Loren Ver , you are spot on correct.

My wife and son used to suffer from what I call "Un-coolitus", the fear of not being seen to be cool.

It took awhile, but they finally learned that the coolest thing in the world is someone having a truly awesome time whilst not harming anyone in the process.   So much happier!

@SwordGuy Being mainstream cool is overrated.  Very few (very boring, in my opinion) people get to determine what is cool.  What's the fun in that?  Being happy and free wins every time.  :).  Or one can just make up their own definition of 'cool" and just ignore the mainstream cool kids.  You know, what ever works, being free and all :D.
Sit down and I share an ancient wisdom with you: You are cool when you don't care about being cool.
Of course you might be seem as stupid, but don't worry, once people know you are a millionaire, that will change into merely eccentric.
« Last Edit: November 08, 2020, 09:00:14 AM by LennStar »

dragoncar

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Re: Mustachian People Problems (just for fun)
« Reply #8082 on: November 10, 2020, 09:14:43 PM »
Here is my MPP,

We bought a condo for my wife's parents, we put down 70% on the purchase with the plan to pay it off very quickly.  It was so hard to get the mortgage for the 30% because of all the work I had to do to actually prove I had the money.  The mortgage agent told me it's a lot easier when people only put down like 10%.  BTW fully paid off now, I hate debt.

I feel like banks know someone coming in with 70% is going to rapidly pay off the loan so they don’t want to go to the trouble of originating it

Paul der Krake

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Re: Mustachian People Problems (just for fun)
« Reply #8083 on: November 10, 2020, 09:17:50 PM »
Here is my MPP,

We bought a condo for my wife's parents, we put down 70% on the purchase with the plan to pay it off very quickly.  It was so hard to get the mortgage for the 30% because of all the work I had to do to actually prove I had the money.  The mortgage agent told me it's a lot easier when people only put down like 10%.  BTW fully paid off now, I hate debt.

I feel like banks know someone coming in with 70% is going to rapidly pay off the loan so they don’t want to go to the trouble of originating it
What do they care? It’s Freddie and Fanny’s problem.

LennStar

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Re: Mustachian People Problems (just for fun)
« Reply #8084 on: November 11, 2020, 04:11:48 AM »
Here is my MPP,

We bought a condo for my wife's parents, we put down 70% on the purchase with the plan to pay it off very quickly.  It was so hard to get the mortgage for the 30% because of all the work I had to do to actually prove I had the money.  The mortgage agent told me it's a lot easier when people only put down like 10%.  BTW fully paid off now, I hate debt.

I feel like banks know someone coming in with 70% is going to rapidly pay off the loan so they don’t want to go to the trouble of originating it
What do they care? It’s Freddie and Fanny’s problem.
The problem is that the costs for the bank are the same, but you pay less interest to them. So they encourage low percentages.
Also banks are used to 10%, they do it themselves at this level. Using your own money feels wrong for banks from both sides.

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Re: Mustachian People Problems (just for fun)
« Reply #8085 on: November 11, 2020, 09:57:15 AM »
Here is my MPP,

We bought a condo for my wife's parents, we put down 70% on the purchase with the plan to pay it off very quickly.  It was so hard to get the mortgage for the 30% because of all the work I had to do to actually prove I had the money.  The mortgage agent told me it's a lot easier when people only put down like 10%.  BTW fully paid off now, I hate debt.

I feel like banks know someone coming in with 70% is going to rapidly pay off the loan so they don’t want to go to the trouble of originating it
What do they care? It’s Freddie and Fanny’s problem.
The problem is that the costs for the bank are the same, but you pay less interest to them. So they encourage low percentages.
Also banks are used to 10%, they do it themselves at this level. Using your own money feels wrong for banks from both sides.

If the bank sells off the loan to Fannie Mae or Freddie Mac, the bank no longer gets interest on the loan.   That's the point.

They may get a servicing fee for handling monthly payments but that's a different pot of money.

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Re: Mustachian People Problems (just for fun)
« Reply #8086 on: November 11, 2020, 01:56:04 PM »
Not all mortgages are sold.  There was also a guy in here saying that originators can be penalized if a mortgage is refinanced quickly.  In other words, paid off. 

When a loan is paid off, servicing fees also go away

SwordGuy

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Re: Mustachian People Problems (just for fun)
« Reply #8087 on: November 11, 2020, 02:29:39 PM »
Not all mortgages are sold.  There was also a guy in here saying that originators can be penalized if a mortgage is refinanced quickly.  In other words, paid off. 

When a loan is paid off, servicing fees also go away

Well then, Quicken Loans probably paid a penalty since I paid my mortgage off in 10 months.

That will serve them right for twice trying to "accidentally" stick me with a 1% points fee we hadn't agreed to.

Karma.   Sweet.

Alternatepriorities

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Re: Mustachian People Problems (just for fun)
« Reply #8088 on: November 11, 2020, 02:59:23 PM »
Not all mortgages are sold.  There was also a guy in here saying that originators can be penalized if a mortgage is refinanced quickly.  In other words, paid off. 

When a loan is paid off, servicing fees also go away

The last mortgage broker I worked with did say he loses his commission on any loans that are paid off in less than a year.

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Re: Mustachian People Problems (just for fun)
« Reply #8089 on: November 11, 2020, 02:59:52 PM »
Not all mortgages are sold.  There was also a guy in here saying that originators can be penalized if a mortgage is refinanced quickly.  In other words, paid off. 

When a loan is paid off, servicing fees also go away

Well then, Quicken Loans probably paid a penalty since I paid my mortgage off in 10 months.

That will serve them right for twice trying to "accidentally" stick me with a 1% points fee we hadn't agreed to.

Karma.   Sweet.

That is a little bonus there!

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Re: Mustachian People Problems (just for fun)
« Reply #8090 on: November 17, 2020, 08:42:32 AM »
I keep a spreadsheet projecting our taxes for the year. With three paychecks each left, DH and I are projected to be ~$600 away from maxing out the 12% tax bracket even with putting ~$9k in each of our 401ks (could have been higher but we were preparing to buy a new house). But that does not include bonuses that we are both expecting to get or any overtime DH may get (minimal, but could be some). I have no idea what my bonus will be since this is only my second year with the company and there are large (positive) changes coming at the end of the year. We just moved and still own our old home so I'm reluctant to just bump up our 401k's since I don't know how much we'll need to stay in the 12% bracket or how long we'll own both houses. We've been maxing out our ROTH IRA's so I could recharacterize some of those, but we're way behind on the ROTHs and trying to catch up

TLDR: We made enough money that we may need to either not put as much in our ROTHS or pay 22% Federal income tax

sherr

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Re: Mustachian People Problems (just for fun)
« Reply #8091 on: November 17, 2020, 08:55:01 AM »
TLDR: We made enough money that we may need to either not put as much in our ROTHS or pay 22% Federal income tax

Hey, this may not be the case here but just in case I want to clear up a commonly-held misconception.

If you do bump up into the 22% tax bracket, all that means is that is that those few hundred dollars that pushed you into that bracket are taxed at 22%. The rest of your income is still taxed at 0% (deduction) or 10% (first bracket) or 12% (second bracket).

If your goal here is simply to squeeze every last bit of tax advantage out of your ROTH IRAs, then have fun. But if you're worried that all your other income will be retroactively taxed at 22% just because you barely edged into that bracket, then be reassured that that is not how it works.

AerynLee

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Re: Mustachian People Problems (just for fun)
« Reply #8092 on: November 17, 2020, 09:17:08 AM »
TLDR: We made enough money that we may need to either not put as much in our ROTHS or pay 22% Federal income tax

Hey, this may not be the case here but just in case I want to clear up a commonly-held misconception.

If you do bump up into the 22% tax bracket, all that means is that is that those few hundred dollars that pushed you into that bracket are taxed at 22%. The rest of your income is still taxed at 0% (deduction) or 10% (first bracket) or 12% (second bracket).

If your goal here is simply to squeeze every last bit of tax advantage out of your ROTH IRAs, then have fun. But if you're worried that all your other income will be retroactively taxed at 22% just because you barely edged into that bracket, then be reassured that that is not how it works.
Haha, thanks, but I'm a tax accountant so I actually do get this, though I see sssssoooooo many people that don't. Just trying to get my taxable income right at the top of the 12% tax bracket while maxing the ROTH IRA's.
I was actually hoping to do a ROTH conversion this year, but between not putting as much in 401ks due to prepping to buy a house and DH getting a sweet spot with the Federal unemployment (10% hours cut for a net extra of $530/week for 14 weeks, but no 401k withholding) our taxable income ended up higher than it expected at the beginning of the year

markbike528CBX

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Re: Mustachian People Problems (just for fun)
« Reply #8093 on: November 17, 2020, 03:11:48 PM »
Current estimated tax burden  $31 ,  Tax credit of $150 for new high efficiency furnace, can't be applied because of low taxes.
Can't really generate enough taxable income since my capital gains and dividends are well below the 72K limit.
Don't need the money this year. Don't want to have that much cash lying around rotting with inflation.
Certainly don't want a J-O-B to generate taxable income.    Maybe some unqualified dividends will be issued as a surprise in December.

MPP:  oh woe is me     :-)

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Re: Mustachian People Problems (just for fun)
« Reply #8094 on: November 17, 2020, 04:15:01 PM »
Current estimated tax burden  $31 ,  Tax credit of $150 for new high efficiency furnace, can't be applied because of low taxes.
Can't really generate enough taxable income since my capital gains and dividends are well below the 72K limit.
Don't need the money this year. Don't want to have that much cash lying around rotting with inflation.
Certainly don't want a J-O-B to generate taxable income.    Maybe some unqualified dividends will be issued as a surprise in December.

MPP:  oh woe is me     :-)

Roth conversion would work if you had a traditional IRA with funds in it.

markbike528CBX

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Re: Mustachian People Problems (just for fun)
« Reply #8095 on: November 17, 2020, 08:22:28 PM »
Current estimated tax burden  $31 ,  Tax credit of $150 for new high efficiency furnace, can't be applied because of low taxes.
Can't really generate enough taxable income since my capital gains and dividends are well below the 72K limit.
Don't need the money this year. Don't want to have that much cash lying around rotting with inflation.
Certainly don't want a J-O-B to generate taxable income.    Maybe some unqualified dividends will be issued as a surprise in December.

MPP:  oh woe is me     :-)

Roth conversion would work if you had a traditional IRA with funds in it.

Doesn't a Roth conversion require some W-2 style income?

zolotiyeruki

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Re: Mustachian People Problems (just for fun)
« Reply #8096 on: November 17, 2020, 08:35:21 PM »
Current estimated tax burden  $31 ,  Tax credit of $150 for new high efficiency furnace, can't be applied because of low taxes.
Can't really generate enough taxable income since my capital gains and dividends are well below the 72K limit.
Don't need the money this year. Don't want to have that much cash lying around rotting with inflation.
Certainly don't want a J-O-B to generate taxable income.    Maybe some unqualified dividends will be issued as a surprise in December.

MPP:  oh woe is me     :-)

Roth conversion would work if you had a traditional IRA with funds in it.

Doesn't a Roth conversion require some W-2 style income?
Nope!  Roth contributions do, but not conversions.

markbike528CBX

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Re: Mustachian People Problems (just for fun)
« Reply #8097 on: November 17, 2020, 08:46:55 PM »
Current estimated tax burden  $31 ,  Tax credit of $150 for new high efficiency furnace, can't be applied because of low taxes.
Can't really generate enough taxable income since my capital gains and dividends are well below the 72K limit.
Don't need the money this year. Don't want to have that much cash lying around rotting with inflation.
Certainly don't want a J-O-B to generate taxable income.    Maybe some unqualified dividends will be issued as a surprise in December.

MPP:  oh woe is me     :-)

Roth conversion would work if you had a traditional IRA with funds in it.

Doesn't a Roth conversion require some W-2 style income?
Nope!  Roth contributions do, but not conversions.
Thanks, I've always been iffy on that topic, never thought I would have a situation that might require it.

ixtap

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Re: Mustachian People Problems (just for fun)
« Reply #8098 on: November 19, 2020, 04:52:43 PM »
DH has two accounts that were of very nearly the same value, albeit entirely by accident. We will be adding to one of those accounts next week, wrecking that symmetry.

markbike528CBX

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Re: Mustachian People Problems (just for fun)
« Reply #8099 on: November 19, 2020, 06:33:46 PM »
DH has two accounts that were of very nearly the same value, albeit entirely by accident. We will be adding to one of those accounts next week, wrecking that symmetry.

Similar:  Share amounts very close to share price.  On a single cell calculation, can be hard to tell which is which, and sometimes I update the wrong one.