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About Me:

Monkey Mama

Just a 47-year-old mom of 2 in Northern California. My kids are Monkey Monkey(MM) and Drama Llama (DL). I am married to Monkey Hubby (MH).

We were a one-income family for 13 years. In late 2015 my spouse returned to work (minimum wage/part-time/seasonal). Something recent on his resume just buys us more options for the long run. The main benefit of this job is that he just works while the kids are in school. As always, we are saving 100% of his income.

We saved a lot while we were very young and also moved to a lower cost-of-living area, to make life much simpler. We still live in California though (in one of the most expensive regions of the U.S.). *Simple* and *inexpensive* is relative.

Likewise, we have never had debt aside from our mortgage.** My blog is a testament to how much simpler life is without debt; how we have that much more money to both save and enjoy!

**Caveat: I have no problem whatsoever with credit cards paid off monthly, or low-risk credit arbitrage (for example, 0%-interest debt while earning 5% on FDIC-insured cash). These are the kinds of debt we have had. Just not interested in high-interest debt, using debt to buy beyond means, and not interested in the hassle that comes with loans and payments. With age and means, the latter (hassle) is our biggest debt avoidance motivation.

-------------------------------

2024 Goals

[ ]Small monthly Charitable Contribution
...($230 @ 8/31/24)
...Trying to be more mindful about how the little amounts add up and are helpful.
...This is not an all inclusive list of charitable giving but it is a new habit I want to add in addition to other donations of time, goods and money

[ ]Pay cash for college
...This is so much a given, to me. But I realize not everyone can read my mind, and so will memorialize in my goal list.
...#1 We don't do Debt
...#2 The student loan system is a scammy and corrupt mess.
...Seriously, wouldn't touch these student loan servicers with a ten foot pole.
MM YEAR 1 ✔
MM YEAR 2 ✔
MM YEAR 3 ✔
MM YEAR 4
MM YEAR 5

DL YEAR 1 ✔
DL YEAR 2 ✔
DL YEAR 3

[ ]$10,000 to savings
...($7,749 @ 10/31/24)
...$1,000/month, plus interest
...Topping off with snowballs

[ ]$7,500 to investments
...($4,786 @ 10/31/24)
...~~$350~~ $400/month, plus snowflakes
(Snowflakes: credit card rewards and dividends)
...Topping off with snowballs
...Note: Bumped up to $400 9/1, re: reduced food expenses

[ ]$2,025 to mortgage
...($0 @ 10/31/24)
...Topping off with snowballs and/or excess cash
...Keeps us on track with $10K principal paydown per year

[/]9% of household income to work retirement plans
...(9% @ 10/31/24)
...This is the minimum for the match; I'd otherwise rather fund IRAs.
...Note: Total retirement savings rate is 20% (with IRAs)

Goal savings rate = 25% of gross salary, plus funding IRAs from other sources.

[ ]$14,000 to IRAs 2024 (MAX)
...($0 @ 10/31/24)
...Will fund with MH's income
...Will not fund until the year is over. This is for tax and planning reasons. I won't know what mix of Traditional/ROTH IRA we literally can contribute until we do our 2024 taxes. In addition to that, can make a more informed decision based on our financial and tax situation for the entire year.

-------------------------------

**Long-Term Goals**

[X]$500,000 in retirement accounts by age 45.

Current big picture goal:

[ ]$1 Mil in retirement accounts by age 52.

Stretch Goal: Achieve by age 50

Have decided to pretty much stay the course. Keep saving 20%+ to retirement. This means taking 401K match & maxing out IRAs.

NOTE: WE HAVE NEVER CONTRIBUTED LESS THAN 10% TO RETIREMENT. NO EXCEPTIONS.

If we can't achieve at least 10%, then something else has to give. I share because it's infinitely easier to save for retirement if you start early. Let the investments do the hard work for you.

-------------------------------

Debt: $85,000 mortgage
{Home Purchase Price $290,000}

Ongoing goal is to *never borrow money again.*

Took on a $230k mortgage in 2001 and have not added to that.

-------------------------

Net Worth: Increase net worth by $600,000 in the next 10 years. This is my "financial independence" goal.

2017: +$ 70,000 (partial year)
2018: +$ 51,000
2019: +$105,000
2020: +$104,000
2021: +$215,000
2022: <$ 65,000>
2023: +$ 90,000
TOTAL: +$570,000

This is in line with prior goal, saving 100% of our expenses every year.

{Our expenses are far more consistent than our income. Also, helps to prevent "living up to income."}

-------------------------------

My Pages

How about 4.875%?

December 10th, 2008 at 10:22 pm

Just locked in a refi.

O.M.G.

Today has been a little melodrama.

Short version:

Tried to clock in 5% or less, at 1 point, all year.

We've paid enough off the loan this year ($4k - just regular payments) that 5.25% was starting to look attractive. Certainly 5.125%

Anyway, mortgage broker call and we discussed things.

He told me today he could lock in 4.875% with 75% loan to value ratio and 1.5 points. For various reasons this was actually a pretty freaking good deal. I had pulled a number out of the air though for appraised value (who knows in this market!?!?!?!?!) and so we decided no, then I told him to just let me know when he has a house value. As I ate lunch I started to think I Was crazy not to do it. To even cash out the money.

But I hesitated for a few reasons. Dropping home values. A general aversion to borrowing. We could have paid it right back, but then wouldn't give us the $200/month savings we were aiming for.

So anyway, just as I Was convincing myself to work on my dh tonight, and dreaming of what to do with borrowed money (pay for next car, max out ROTHs, plump up cash???????) the mortgage guy called me back.

House appraisal estimate $325k. (I had pulled $300k out of the air). Sure, sounds good, but how long will it last. Actually, glad it gives us some wiggle room. (Then again, what I Was afraid of. Not borrowing $250k!)

Anyway, not only that, but there had been a rate drop.

So I locked in 4.875%. No cash out - just to pay off our existing loan. NO more having to borrow MORE for the better rate.

Whee!!!!

Did I pay too many points? Will rates go down to 4.5% after all?

Who cares? My mortgage payment is going down $200/month.

We could resume old payments and pay off 3 years ahead of schedule. (3 years ahead of current mortgage payoff).

I ain't sitting around for 4.5% to materialize. No way!

Anyway, last time was s'posed to be the last time (2003, 5.75%). But history keeps beating itself.

It's surreal. Our very first loan in 1999 was $1500/month, 8.25%, borrowed $208k. (For a condo half the size).

Since we're financing all the costs, will be about $212k loan, 4.875%, $1100/month payments.

Pinch me!

Where I grew up you could not rent a studio apartment for $1100/month. In 1995. I have died and gone to heaven. Big Grin

Anyway, send me good vibes. I do not want anything to screw this up!!!!!!!

Posted in Just Thinking, Budgeting & Goals | 17 Comments »

17 Responses to “How about 4.875%?”

Analise Says:
December 10th, 2008 at 10:30 pm 1228948255
1228948255

Great deal! Our loan is @ 6.25%... maybe I need to start thinking about a refi since we will be here for 6-7 more years.
princessperky Says:
December 11th, 2008 at 12:23 am 1228955015
1228955015

huh, wonder if we should look into refi...rate sounds awesome.. how do you do that anyway? (so far as I know ours is 6 something?)
Analise Says:
December 11th, 2008 at 12:49 am 1228956547
1228956547

monkeymama - I owe you big time! I called our lender (Countrywide) and they offered me a 4.875% w/ 1 point and our payment will be $225.82 a month LESS. The new loan amount includes all escrow costs. Plus, since our FICO score is 830, no documentation needed. It was so easy.

I had no idea the rates had gone this low. I am so indebted to you! Thank you for posting your good news which made me think about our situation. *BIG SMILE*
Ms. Pearl Says:
December 11th, 2008 at 02:21 am 1228962116
1228962116

Wonderful news! I am so jealous!
monkeymama Says:
December 11th, 2008 at 02:44 am 1228963469
1228963469

Cool!!!!!!!!!!!

PP - call some mortgage brokers. Or some banks.

Analise - I was musing that this was the first time I had to document anything since our first purchase in 1999. Seriously. It's weird. (At some point we borrowed $500k with no documentation - when we had 2 homes for a very short while). Now I have to dig out all my tax returns. I haven't done this since 1999! We've refied like 3 or 4 times since (& a purchase). Just on the strength of our word.

Maybe I should have just called Countrywide. They probably would have done No Doc. Our current loan is with them. (I checked their rates early in the day and they were way higher - online anyway) Then again - you have to do impounds to get the best rates. Are you stuck with impounds?
monkeymama Says:
December 11th, 2008 at 02:53 am 1228964002
1228964002

PP - I Was in talks with a broker a friend recommended (called him about a year ago). Since we are one of the few - in this area - with both income AND equity, he has me on speed dial. So yeah, I knew he would keep me informed.

We tried to refi with our Credit Union, but they were just a PITA. It was impossible to lock in a low rate and they would only open our app a month or something (this guy has held it all year, until we got the rate we got. He would have held it longer).

We started looking because we were considering low 15-year rates and there were some incredible 30-year rates early in the year, so we had decided to refi then. Then rates shot up until now!
frugaltexan75 Says:
December 11th, 2008 at 03:09 am 1228964985
1228964985

Wow! That is a fantastic rate! Your savings goals are going to go a lot easier with that money freed up each month! That's an extra $2400/year!
gamecock43 Says:
December 11th, 2008 at 04:15 am 1228968903
1228968903

congrats!! you are one smart cookie to do so well!!
Analise Says:
December 11th, 2008 at 04:16 am 1228969009
1228969009

monkeymama - We will not have to do impounds. They asked if I wanted impounds and I said no unless there was some financial advantage for doing so. So, no impounds. Today online, the Countrywide rate for a 30-year fixed was 4.875% which is why I called them (after seeing your post). Then we ended up qualifying for what they call the "Fastrack" option which has no appraisal, limited paperwork, and a quick close. Not sure if there were other factors but we are long-time customers of Countrywide so they know us.
monkeymama Says:
December 11th, 2008 at 05:18 am 1228972732
1228972732

Analise - Phew. I remember that was the catch with them last time. Their rates were higher (in 2003 anyway) if you didn't do impounds. They could be doing things differently now. So I wondered if you had asked. Of course you did!!

I forgot to even ask but I swear this broker guy can read my mind - he asked me. (& read my mind on a few other things). Phew!!
monkeymama Says:
December 11th, 2008 at 05:19 am 1228972776
1228972776

FrugalTexan - $2400 - I am well aware!!!!! HAppy dance!
scfr Says:
December 11th, 2008 at 03:30 pm 1229009435
1229009435

Congrats to you and to Analise too! Great news.
princessperky Says:
December 11th, 2008 at 07:54 pm 1229025254
1229025254

So I called my mortgage company (wells fargo) they quoted 5 something, which is less than we pay now, but only for a 30 yr mortgage, I don't want to start over on this loan.

I will try other banks (don't know what a mortgage broker is)

And this is one more reason why I prolly don't belong in middle class with all these finance things, ugh.
monkeymama Says:
December 11th, 2008 at 08:44 pm 1229028285
1229028285

Rates are lower today.
Analise Says:
December 11th, 2008 at 10:44 pm 1229035468
1229035468

monkeymama - Yes, Countrywide's rates are 4.625% today. I called and they said we were locked in but that at closing, we could renegotiate the rate and "split the difference." Not sure how this will actually play out, but I am not going to quibble over $34 a month... I am just grateful to get the 4.875.
MileHighGal Says:
January 22nd, 2009 at 11:01 pm 1232665281
1232665281

Wow, that is an awesome rate! Good Job! Did you bump your years down too in the process??
monkeymama Says:
January 26th, 2009 at 05:09 pm 1232989753
1232989753

No. Started over 30 year amortization. But yes, it will be FAR easier to pay off in 15 more years as planned. So, yes and no.

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Monkey Mama*s Monkey Money Blog

Over Prepare, Then Go With The Flow

How about 4.875%?

17 Responses to “How about 4.875%?”

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