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Old 09-26-2012, 08:46 PM
 
Location: Vallejo
21,723 posts, read 24,964,564 times
Reputation: 18994

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Quote:
Originally Posted by danielsa1775 View Post
Dont know if it is classed as savings, but we put 65% of our take home income into our mortgage, or about 5 times the required minimum amount.
I would, as long as it's a reasonable house that's mortgage isn't much more than rent would be on an apartment. Should have a 30-year mortgage paid off in about three and a half years at that rate, which would be very nice. As an investment, it's not the best. It's never a good idea to put that much into a single asset, let alone one that isn't liquid.
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Old 09-26-2012, 10:10 PM
 
Location: Brisbane
5,059 posts, read 7,470,198 times
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Quote:
Originally Posted by Malloric View Post
I would, as long as it's a reasonable house that's mortgage isn't much more than rent would be on an apartment. Should have a 30-year mortgage paid off in about three and a half years at that rate, which would be very nice. As an investment, it's not the best. It's never a good idea to put that much into a single asset, let alone one that isn't liquid.
We have what you in the USA term a "Flexible Mortgage". Basically the excess payments you make on your mortgage are deposited into a seperate savings account which functions like any other savings account, but when it comes to calculating interest payments on the mortgage the two accounts "offset" each other, you pay interest on the net balance. We call them mortgage offset accounts.

According To this its actually a very new concept in the USA?

Flexible mortgage - Wikipedia, the free encyclopedia

Agreed about diversification, we just got married and are looking at having children, so do not really think it a good time to take on a lot of risk at the moment.

Interest rates are also a bit higher here, it will take a bit more than 5 years to pay it off at our current rate of payment.

Last edited by danielsa1775; 09-26-2012 at 10:46 PM..
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Old 09-27-2012, 10:17 PM
 
Location: Mid-Atlantic
32,851 posts, read 36,171,734 times
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I've never figured it out percentage wise. I just put aside as much as I can, then, when I have saved quite a bit, something breaks, happens. It's always something.

If you believe in karma, I must have been a really bad person in my last life.
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Old 09-28-2012, 07:03 PM
 
Location: Chapel Hill, NC, formerly NoVA and Phila
9,767 posts, read 15,742,762 times
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Quote:
Originally Posted by Gerania View Post
I've never figured it out percentage wise. I just put aside as much as I can, then, when I have saved quite a bit, something breaks, happens. It's always something.

If you believe in karma, I must have been a really bad person in my last life.
My mom would not stock up on paper towels. She swore that every time she did, there was a flood in the house and she'd use them all up.
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Old 10-02-2012, 06:34 AM
 
Location: South Portland, ME
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I shoot for 45% although some months where we do a lot it only ends up being 35%.
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Old 10-02-2012, 10:20 AM
 
15,633 posts, read 26,189,138 times
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Quote:
Originally Posted by danielsa1775 View Post
We have what you in the USA term a "Flexible Mortgage". Basically the excess payments you make on your mortgage are deposited into a seperate savings account which functions like any other savings account, but when it comes to calculating interest payments on the mortgage the two accounts "offset" each other, you pay interest on the net balance. We call them mortgage offset accounts.

According To this its actually a very new concept in the USA?

Flexible mortgage - Wikipedia, the free encyclopedia

Agreed about diversification, we just got married and are looking at having children, so do not really think it a good time to take on a lot of risk at the moment.

Interest rates are also a bit higher here, it will take a bit more than 5 years to pay it off at our current rate of payment.
Yeah, but here all that meant was you didn't have to pay the full amount..... so those were the first to go in the subprime mortgage meltdown. Those were also marketed more to the bad credit/no credit crowd.
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Old 10-03-2012, 09:29 PM
 
Location: Vallejo
21,723 posts, read 24,964,564 times
Reputation: 18994
Quote:
Originally Posted by danielsa1775 View Post
We have what you in the USA term a "Flexible Mortgage". Basically the excess payments you make on your mortgage are deposited into a seperate savings account which functions like any other savings account, but when it comes to calculating interest payments on the mortgage the two accounts "offset" each other, you pay interest on the net balance. We call them mortgage offset accounts.

According To this its actually a very new concept in the USA?

Flexible mortgage - Wikipedia, the free encyclopedia

Agreed about diversification, we just got married and are looking at having children, so do not really think it a good time to take on a lot of risk at the moment.

Interest rates are also a bit higher here, it will take a bit more than 5 years to pay it off at our current rate of payment.
Not sure how much I like that idea. You're basically paying them the 3%? to hold your money... I mean, they're holding your money for you should you need it, but you could just as easily invest the excess payments in a CD or something that probably pays the same interest rate. I suppose if you were going to that anyway it makes as much sense.
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Old 10-10-2012, 09:19 PM
 
30,876 posts, read 36,862,539 times
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Quote:
Originally Posted by french paris View Post
I generally save 15% of my income.It is the average in France.And you ??
According to this article, the French savings rate is currently around 17%. I wish Americans were that sensible. Heck, I'd be happy if we saved 7% or 8% of our incomes, as was typical before about 1980 when we started to go crazy with debt. Our current savings rate is only around 3.7% and that is actually better than it was before the 2008 financial crisis began.

The irony is the French welfare state / social safety net is more generous than what we have in America, yet Americans are the ones who overspend


Record French savings hit growth, boost banks | Reuters

I save around 29% of my income (before tax and including retirement savings...most of my saving is for retirement). And no, I don't earn a lot. I am definitely weird by American standards.
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Old 10-11-2012, 02:22 AM
 
7,687 posts, read 5,105,528 times
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About 60% of my take home pay. No kids, no debt, and a roomate!
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Old 10-11-2012, 05:01 PM
 
Location: Brisbane
5,059 posts, read 7,470,198 times
Reputation: 4531
Quote:
Originally Posted by Malloric View Post
Not sure how much I like that idea. You're basically paying them the 3%? to hold your money... I mean, they're holding your money for you should you need it, but you could just as easily invest the excess payments in a CD or something that probably pays the same interest rate. I suppose if you were going to that anyway it makes as much sense.
It seems the banking and tax system here work a lot different to that in the USA. If I was better off having the money in a CD I would.
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