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Toshi's thread

Toshi

Harbinger of Doom
Oct 23, 2001
32,136
4,027
Still 30 years then given that rate?

Related to mortgages and financial trickery:

Thought of the moment related to Project Mountain Home:

Is there a good reason to not employ loans from my 403(b) and 457(b) retirement plans towards a down payment on a second home? I have account balances such that the max $50k account could be extracted from each.

Downsides that I see:

- loan payments would count against DTI, but I’m fine there
- not accruing investment gains on loaned money

Upsides:

- could make the mortgage a conventional, conforming loan and thus no PMI, no funky extra 10% high interest loans, etc.
- the interest paid back for said loans would be paid back to me, so doesn’t really matter, imo
- I could pay these loans off probably by year 2
I have since found out that this particular kind of self-repayment actually doesn't count against DTI, apparently.

In any case, I just put in a second mortgage pre-approval application via a lender located through Costco Finance.

Seeking pre-approval for $685k as with 20% down against that that'd result in a mortgage of $548k, which nestles nicely just under the Grand County 2021 conforming limit. At/under that limit there's actually good competition for business even for second homes. Bankrate had an outfit offering 2.500% flat (0 pts, 30 years fixed) but they have higher fees, in my experience, plus they are also super annoying about pestering one with phone calls and the like. I put in an application with NASB, advertising $750 or so in fees including appraisal, 2.625% flat at the same terms as above.

I included in the comments that I'd be coming up with $100k of the down payment via loans from my 403(b) and 457(b) plans. Perhaps the underwriters will see that and shoot down my plans for the better. Perhaps it'll fly. 'tis a low risk first step in any case, along with transferring the remainder of the hypothetical down payment from an 82% stock Betterment goal to a 5% stock goal for the moment.


Edit: Also applying with Pennymac directly as they did well by me with this latest/current primary home refi.

Edit 2: Pennymac rates FTW. 29 year fixed (yes, not 30–better rates). 2.500% with $3,137 in points, but that offset by $2,700 (0.5 point) in lender credit. No origination fee since I'm a current customer.
 
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Toshi

Harbinger of Doom
Oct 23, 2001
32,136
4,027
I'd be coming up with $100k of the down payment via loans from my 403(b) and 457(b) plans.
Found a big fly in the ointment with this plan! They share a common $50k loan limit between them, not a separate limit per account. This is annoying since they have separate contribution limits...

Capture.PNG


So this pushes my schemes back at least 6 weeks if not more, as I'll have to tap into my taxable account more instead of surfing on this self-loan business.
 

Toshi

Harbinger of Doom
Oct 23, 2001
32,136
4,027
1) I have sufficiently scratched my skiing itch this season, 14 days logged thus far. For the remainder of the season I will elect to ski if either I'm there for elder kid's Devo program; meeting up to ski with someone in particular; or there's overnight powder of ideally 6" or more. Otherwise I'll skip the driving and get my sweat on via Peloton instead.

2) Just applied for preapproval with Key Bank, the one from the prior page that'll do 90% LTV up to $610k with PMI (ugh) or higher amounts as an 80 + 10% two-loan oddball combo (slightly less ugh as presumably the 80% loan wouldn't have PMI––must confirm). Credit inquiries for the same thing (e.g. mortgages, or auto loans) within two weeks count as one inquiry, iirc.

Edit: approved through KeyBank for their weird two mortgage setup.
 
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SkaredShtles

I love NEWCASTLE and will ONLY drink NEWCASTLE!!!!
Sep 21, 2003
56,379
7,056
In a van.... down by the river
Now *here's* a unique take on why to *not* pay off your mortgage early.


Key quote:

"I stopped aggressively looking for new freelance consulting work. I went from taking on three contracts per month to just one. So instead of working 60 hours, I was only working 20 hours."

:think:
 

6thElement

Schrodinger's Immigrant
Jul 29, 2008
9,593
6,464
Now *here's* a unique take on why to *not* pay off your mortgage early.


Key quote:

"I stopped aggressively looking for new freelance consulting work. I went from taking on three contracts per month to just one. So instead of working 60 hours, I was only working 20 hours."

:think:
Guy is a douche.
 

Westy

the teste
Nov 22, 2002
45,661
11,271
Sleazattle
Now *here's* a unique take on why to *not* pay off your mortgage early.


Key quote:

"I stopped aggressively looking for new freelance consulting work. I went from taking on three contracts per month to just one. So instead of working 60 hours, I was only working 20 hours."

:think:

Perhaps if we taxed the shit out of him he would have bootstrapped
 

Pesqueeb

bicycle in airplane hangar
Feb 2, 2007
34,869
9,323
Riding the baggage carousel.
"I can't believe having all this money has apparently made me lazy. I'm mad at myself for taking all those vacations instead of continuing to amass wealth."

What the fuck is wrong with this guy?
This is the point, no?

I know when I have no mortgage, hopefully here in a year-ish, the struggle to maintain "Full time employment" is going to be real. That's by design. :think:
 

Toshi

Harbinger of Doom
Oct 23, 2001
32,136
4,027
No one is paying me to humblebrag, sadly, but I shall be charging $1,000/hr tomorrow while I’m deposed as the plaintiff’s expert witness.
 

Toshi

Harbinger of Doom
Oct 23, 2001
32,136
4,027
IMG_6225.jpeg


Ramp tests are hard. From derived 1 minute peak power (for MAP) this yielded an FTP of 324W, up from 274W on the last adjusted-to-an-hour 20 minute traditional FTP test. I adjusted 324W down by 5% because hopping on the bike with the new zones just seemed kind of loony. I'll live with 308W-level pain for the next month or so and do another ramp test, which is really unpleasant for about the last 3 minutes but otherwise is much more tolerable than a normal FTP test.

324W was using a 75% factor against MAP. The true range is 72-77%--no real way to know. 72% would be 311W, so my adjusted to 308W level is just fine indeed and probably more accurate.
 

rideit

Bob the Builder
Aug 24, 2004
15,183
5,948
In the cleavage of the Tetons
Now *here's* a unique take on why to *not* pay off your mortgage early.


Key quote:

"I stopped aggressively looking for new freelance consulting work. I went from taking on three contracts per month to just one. So instead of working 60 hours, I was only working 20 hours."

:think:
“Oh, cry me a River”
 

Toshi

Harbinger of Doom
Oct 23, 2001
32,136
4,027
you will all no doubt rejoice that my Federal return was accepted by the IRS today, so I am apparently out of the woods

(this is curious since I claimed my big solar system and wasn't asked to prove its existence or purchase)
 

Westy

the teste
Nov 22, 2002
45,661
11,271
Sleazattle
you will all no doubt rejoice that my Federal return was accepted by the IRS today, so I am apparently out of the woods

(this is curious since I claimed my big solar system and wasn't asked to prove its existence or purchase)

I once got audited and received a threatening letter from the IRS because a former employer had erroniously filed my business travel reimbursements as un-earned compensation. As I was a starving grad student at the time a very nice accountant in Ballard helped me sort out the problem pro-bono by essentially sending a threatening letter to my employer that he would sick the IRS on their fraudulent asses.

Anyway during the process he explained that the IRS will always bust your ass on unreported income, but there is hardly any over-site on deductions. You know, because the little guy always has a bunch of deductions.
 

Toshi

Harbinger of Doom
Oct 23, 2001
32,136
4,027
I read that EITC is the most audited portion of the tax code, because that's clearly where one should work to regain $100 rather than going after the whales claiming their yachts…
 

Toshi

Harbinger of Doom
Oct 23, 2001
32,136
4,027
EB8D527F-A426-411F-88CF-878069E8ABFE.jpeg


Kids are going to get an 8 x 8’ climbing wall in the basement once I string up some 2 x 4s to the studs and mount these up.
 

Toshi

Harbinger of Doom
Oct 23, 2001
32,136
4,027
02E6E8F9-BBCE-4ED6-9677-744E1A7D7759.jpeg


that was not super pleasant in the last two zone 4 intervals. Note continued avoidance of zone 3.
 
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Westy

the teste
Nov 22, 2002
45,661
11,271
Sleazattle
View attachment 156759

Kids are going to get an 8 x 8’ climbing wall in the basement once I string up some 2 x 4s to the studs and mount these up.

AT first I thought you went avant garde and got some artwork that was a mash up of odd shaped nippily breasts.

Then I realized your just having your children climb up some oddly shaped nippily breasts.
 

Toshi

Harbinger of Doom
Oct 23, 2001
32,136
4,027
AT first I thought you went avant garde and got some artwork that was a mash up of odd shaped nippily breasts.

Then I realized your just having your children climb up some oddly shaped nippily breasts.
They do have a strong breast-vibe in that photo, agreed