All Forum Posts by: Justin Pack
Justin Pack has started 1 posts and replied 4 times.
Post: save more or pay extra on personal mortgage
- New to Real Estate
- Chattanooga, TN
- Posts 4
- Votes 1
Quote from @Theresa Harris:
You are correct in that your lower rate is good and your money can earn you more elsewhere. You should find out how much you can borrow for a second mortgage. You'll need 20% down for a rental and that will limit what you can buy along with how much you can borrow.
I do have some money saved up and could afford something under 300k. I know 2nd Mortgage is typically a shorter term which I don't mind, would that be a good strategy for the BRRR method? Thanks for your time
Post: save more or pay extra on personal mortgage
- New to Real Estate
- Chattanooga, TN
- Posts 4
- Votes 1
Quote from @Ray Hage:
Hi @Justin Pack, it depends on a few things. Your interest rate is great at 3.15%. Many would kill for that (some literally)! First, you need to have some savings sitting around in case of emergencies (car repair, medical issue, water heater breaks, etc.). If you have a few months worth of regular expenses, great!
Then, you need to have something to do with the excess money sitting around. If you are scared to invest it (that means RE, stocks, some kind of business, etc.), then you might as well pay off your mortgage. If not scared, then you will need to find something that beats 3.15% and that is pretty easy. You have an $600/week to invest in something that will bring back more than 3.15% I hope! I am not familiar with your area of TN, but see if it is worth exploring from a real estate perspective.
Thanks. I'm having to retrain my brain that debt can be good. I really haven't seen great returns with other investments, I really think REI is the way to go. I just need to figure it out. Thanks for your time and your response!
Post: save more or pay extra on personal mortgage
- New to Real Estate
- Chattanooga, TN
- Posts 4
- Votes 1
Should I stop making extra payments on my mortgage?
Before I started looking to invest, I wanted to pay my mortgage off ASAP. I always put extra money towards it. I wanted to accomplish 2 things
1) pay my mortgage a few months ahead just in case I decided to quit my W2 and work my side hustle full time (makes the transition easier).
2)prove to myself that I could afford a larger payment & live off of less.
I'm still working both jobs and would love to maximize my opportunity for success REI. I've currently paid about a year in advance (I pay $600 weekly on auto pay, monthly payment due is 1683)
My mindset has always been to pay off my bills as fast as possible to save the most interest... but i now realize there may be better options. After researching and hearing investors talk it seems like the extra money I pay on the mortgage could likely go to better use like RE deals or compounding/earning a better return. My rate is 3.15% currently and I now realize I cant borrow money that cheaply anymore. Since I'm completely new to this I wanted to hear your thoughts/advice. I'm a complete noob and truly grateful for any advice
(Also if there is anyone in Chattanooga Tn I would love to pick your brain for a few minutes)
Post: I need lending advice
- New to Real Estate
- Chattanooga, TN
- Posts 4
- Votes 1
Quote from @Jaron Walling:
@Eliott Elias What's a "DTI"?... why do I read these forums.
dti=debt to income