Author Topic: New Guy - Introduction  (Read 2387 times)

TheInsuranceMan

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New Guy - Introduction
« on: April 24, 2015, 10:37:27 AM »
Well, I've already introduced myself in the "introduce yourself here thread", but posting out here gives me a little more opportunity to divulge some information, and get some feedback.  So, if you are reading this, it's going to be a bit long - I'm a fast typer, I get a bit wordy, and I typically, at least according to my wife, am a bit too thorough at times - so, I'm going to try to keep this brief.
Family of 3 - Me - 27, Wife 26, Daughter 11 months...in 6 days.
Obviously, by my screen name, one can imagine what I do - I'm an insurance agent - I sell crop, farm, home, auto, commercial - we do life, health, etc., but I haven't got that license yet.
My wife is JUST finishing up school, she has an undergrad degree, but after 3 years, didn't make it into the graduate program she was hoping for.  So, she is finishing another 2 year degree, her last day of clinical's is actually TODAY!  She has one week of class, than starts her job the first Monday in May - Hell yes, finally.

So, our numbers are going to seem crazy low compared to most on here, income wise, mortgage wise, etc.  And that is because we live in a very low cost of living area, rural as can be.  I go to three different offices, and two of those offices are in towns of less than 600 people.  Pretty sweet.

So, I make 38k + commission (I'll make close to 50k this year)
My wife will be starting out at $10.50 per hour, until she passes her boards, and then she jumps up to $18 an hour

Mortgage: 15 year, purchased the home in 2013 for $82,500 @ 3.75- acreage actually, 3.5 acres of land, house, and a couple of sheds.
We owe $59k - Pay $650 a month including escrow
House appraised at $125k last week due to us finishing a basement and doing a BUNCH of other work to the property
Student loans - my wife has none, I have 48k owed and those are on income based repayment as my wife was in school, and that was my ONLY way to be able to keep up on all our bills.  I pay $334 for those right now
Daycare is 500 a month
We suck at budgeting for anything, that'll change now that my wife has a job, steady income, and we can expect the same thing, week after week, month after month

My goal is to be able to get close to a $750 a month student loan payment, thus getting those paid down.  We COULD, with our new house value, re-start our loan, which they'd group my student loans into, but then we'd be losing all our equity.  We plan to move in 3-5 years, closer to my wifes job (30 mile commute) and the family farm that we help on.

Our jobs are very, very secure.  The agency I work for has been around for 96 years, very solid book of business, and the other 3 in the office are in their mid-50's, and the potential to grow into the vice president role (president owns the bank, and agency, but he doesn't do anything on the agency side).

We have health insurance, I have a 401k, she had a 403b at her previous job - she will be able to get a state retirement plan through her new employer, which is awesome.
We pay $570 a month for health insurance, $25 of that is more me, the rest is for my wife and child.  She'll be able to have her own health insurance after her first month in the job, so we'll be weighing those options.  Very well will put $200-$400 a month back in our pocket.

So, that's me, questions?  Comments?  I was a bit all over the place, and I didn't want to divulge a TON of info, which it appears I did anyway.
No real FIRE goal - we just moved here two years ago, it is our "home" from when we were kids.  I guess my goal would be able to get my student loans paid off within 5-7 years, and then when I hit about 45, I'd like to be able to do just crop and farm insurance, work part time in the office, and work part time farming.  That'd be the coolest thing ever.

velocistar237

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Re: New Guy - Introduction
« Reply #1 on: April 24, 2015, 11:32:21 AM »
My goal is to be able to get close to a $750 a month student loan payment, thus getting those paid down.  We COULD, with our new house value, re-start our loan, which they'd group my student loans into, but then we'd be losing all our equity.  We plan to move in 3-5 years, closer to my wifes job (30 mile commute) and the family farm that we help on.

Don't worry about losing your home equity, just think about putting your assets and debts where it makes the most sense overall. You didn't mention the interest rates on your student loans. Mortgage rates are at record lows, so it might be worth buying them out with your home equity, like you describe. You'll likely save enough in the next 3 years to handle whatever comes then. Just something to think through.

TheInsuranceMan

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Re: New Guy - Introduction
« Reply #2 on: April 24, 2015, 12:00:22 PM »
3.15% and 6.55%, about 50/50 on the loans that way.
If we re-fied w/ the student loans thrown in, got the same rate, and started the 15 year term over, I think, if I remember right, we'd be at $792 a month + escrow - so really, our only big savings is saving on interest rate.  However, I think if we can pay my regular payment, and then add to the largest loan with the highest interest, and work our way down the line, that it'd be a better idea than losing our equity.  Any other comments on that?  Honestly, we weren't sure what to do, and we are still discussing it.

velocistar237

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Re: New Guy - Introduction
« Reply #3 on: April 24, 2015, 12:12:28 PM »
That sounds like a better plan. The closing costs would cancel out any benefits of a lower interest rate if you paid it off quickly, and it shouldn't take long since you've made it your priority.