As said, pay off the car and put that monthly expense towards your loans. With the car being paid off, it becomes equity that you could use if you need money for anything.
Pay off the car or put a dent in student loan?
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It's just the way it is here. I will pay a TON along the way, but my house will go up a lot being very close to Silicon Valley. I bought my house 2.5 years ago, and it's gone up in value by about $180k, and I paid $860k. But, it is outrageous. The county is collecting an enormous amount of tax revenue per home compared to other places in the US. Santa Clara County's median home price is just over $1M, even with almost 2M people living in it. There's a huge amount of high wager earners who frankly don't need the policing, etc. that poorer communities have to deal with. I have no idea where all that money is going.
I think my property tax is about $10,500. With my taxes, insurance, principle, and interest my payment each month is $4400.
Yikes!
I think it’s still small. The old timers not so much, haha.
Before I got married my wife and I bought a home together but we only had enough cash for 5%. Had huge PMI and after 2 years I called and the loan serviced said we needed 75% LTV! Comps were barely hitting 80%. We ended up selling that house 6 months later for $130k more than we paid. New house we were married and used VA home loan to insure.
Believe it or not, a lot of people do live in homes that are probably valued at $750-1mill but only pay a couple grand a year in property taxes. They thank proposition 13 for this. My grandma was only paying $1000 a year for her home that she bought in 1960, haha.
Nice! Must of been super competitive around the time you bought. I wonder what these city councils clowns do with all of the money.
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Student debt first. It's money that's going out every month thst you don't have anything tangible to physically show for it. IE you can't just sell something and get it's value back like a car sitting in the driveway. In a pinch if you needed to you can always sell a car and offload it's debt. Can't do that with student debt, and they don't care if you're working or not.
My next door neighbor worked Prop 13 to a T. His dad bought a house in 1955 in Palo Alto. He lived there until he died about 5 years ago. My neighbor Jeff moved into the house for two years to establish residency, then moved next to me- taking that old tax liability with him. They paid $1.5M for their house and pay $1500 / YR in property tax! I'm going to try and do the same thing with my folks' house that they bought in 1982 someday. I'm just not sure I'll be able to buy out both brothers of their 1/3 of what is now a $2.5M house WITH A SHOP IN THE BACKYARD!
Thanks, it was competitive but most people in Silicon Valley don't want: an unpermited guest house on the property, a well, and a septic tank. Plus the 2 acres is on a fairly steep slope so no real flat ground. If it were flat, it'd be worth about $300k more and out of my price range.
Someday I'll either go to my folks' place, or buy a place with a shop. For now, I'm satisfied with rental income, 75 oak trees, only one next door neighbor, mountain lions, bobcats, rattlesnakes... ok F the rattlers. LOL.
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Yeah, that area is just going to go up. I bought my house Aug 2016 for $272 and now it's worth about $292. So I'm up about $20k, but we will be staying in it for a few more years at least. If we move, possible plan on renting it out. I grew up in Cali and love it, but I will never live there again. Too many stupid people and laws.
exactly. unsecured non-dischargeable debt is the worst thing to hang on to
If cash flow problems are remotely possible you eliminate the car loan first and then make extra principal payments on the student loan. Once the car loan is paid you only have one required payment per month. If you use the money to only pay down the student loan, yes, your student loan balance is lower than it was previously, but it is not eliminated. You then still have two required monthly payments. Option 1 gives you flexibility while still aggressively paying down the student loan balance as funds permit.
If it were me, I'd pay off the Car loan...
and then go get another...
and then go get another...
Paid the car off and broke at this point, but feels good
Keep paying for hair..
It’ll work out
It’ll work out
I already paid for that and if I had 10 lives and would do it again and again.
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That's what I would have did.
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