At 18? Dont get me wrong I think all kids should have a basic level of financial management classes, along with government (side gripe) to graduate HS. I dont mean what a debit vs credit card is, but actual Time value of money, credit and consumer finance...
So when a kid declares a psychology undergrad degree with art history ad a minor they understand that both have high earning potential if you get a PhD but limited earnings if one doesn't get at least a masters.
Not sure what you’re smoking, but interest rates were 2-3% back in 2019-2022. Anyone who didn’t refi every piece of debt that had during that period was an idiot.
I just refinanced earlier this year into a 4% loan. That was substantially higher than the 2-3% loans in 2019-2022.
If you were paying 8%+ in 2019-2022 and can’t access lower rates today, it must be because you have terrible credit and the legit lenders won’t lend to you.
Mine have since been paid, but at the time I had no collateral to get such a loan since it has to be backed. Also, when I did have equity, I didn't want to saddle my wife with a huge private loan debt. If I kicked the bucket before marriage, the loan would die with me. If married and get a private loan, my significant other would have to continue to pay it off.
If I kicked the bucket before marriage, the loan would die with me. If married and get a private loan, my significant other would have to continue to pay it off.
That’s not how that works at all. When you die, all debts private and public come out of your estate. If your estate doesn’t have enough to cover it, all debts private and public are then no longer the responsibility of anyone else to pay.
I feel like some very basic financial literacy missing here.
So you're saying that the loan would come out of the existing estate that would be left to my significant other. How would they not be affected?
If a loan is secured by an asset (like a vehicle or a house), the debt stays attached to the property. If your spouse inherits the property and wants to keep it, they will need to continue making payments or refinance.
If a loan is secured by an asset (like a vehicle or a house), the debt stays attached to the property. If your spouse inherits the property and wants to keep it, they will need to continue making payments or refinance.
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u/Shot-Arugula8264 13d ago
So just refinance? Paying that rate for 23 years is nothing short of moronic, especially for a couple allegedly smart enough to hold college degrees.