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retirement planning

HappyHighwayman said:
I'm going to stick with mine, closing costs and fees around $2500-$3000 for 2.75%/2.8% APR
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You really need to call more than one place. I've never kept mortgages for too long so when i shopped around for refis I'd ask about "no cost" refis. Basically they'd increase your interest rate to offset the closing costs. If the interest rate was still lower than my current interest rate I'd do it, if it wasn't i wouldn't. It may make sense to pay points to lower your interest rate if you plan on holding onto the loan for a while. Problem with that is if rates drop more in the shortish term you just paid points for no good reason. There's a few factors you need to consider when going through this process, all of which i won'tgo into, but if you're serious you really need to shop around AFTER knowing what your long term plans/goals are with the property and loan.
 
Thank you good point I shall.

My long term goals were to pay off the house in 15 years so getting a lower interest rate will work with my plan since the new loan will "reset" at 15 years and then I won't have to increase payments.

Apparently I can't pull $7500 out without going to a higher interest rate for my laser eye surgery but I do get a 1-2 month mortgage "vacatoion" so I'll just paty it out of pocket.
 
You’re better off paying out of pocket rather than cashing out part of the refi. The portion of interest paid on your surgery would have been non deductible on your taxes, so you’re paying your interest rate plus the amount of lost mortgage interest deduction
 
I’d say about $50 per year you’d pay more in taxes if I had to guess which would be worth $1200 by the time you paid off your loan.
 
Thanks I'm going to just pack out of pocket. Honestly worst case I could borrow some from my dad but there will be 1-2 months mortgage vacation where I'll get most of the cash needed.
 
Posted this in another thread but thought I'd post here also.

Even us retired folks need to keep in mind that 20 percent or so of money in our non Roth IRAs goes to Uncle Sam.

We'll be working on mitigating that between 65 and 70 when we start collecting Social Security by using those 5 years to draw down our IRAs while I'm in a lower tax bracket.

Once we collect SS combined will be +$80,000 +/-.

Not starting until age 65 as we are trying to maintain our income at a level that still qualifies us for a Health Care subsidy.

Before that subsidy we were paying 17k/yr, it would, obviously, be much much higher today.
 
GAJ said:
Not starting until age 65 as we are trying to maintain our income at a level that still qualifies us for a Health Care subsidy.

Before that subsidy we were paying 17k/yr, it would, obviously, be much much higher today.
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Thats totally nuts
 
So after the refinance I'll be paying around $3050 a month for 15 years whereas before I was paying $2400 but adding $600 a month on top which would have taken longer than 15 years. I want to retire in 15 years.
Went from 3.625% to 2.74%
Only real cash out of pocket is a bullshit $350 appraisal fee
 
HHM, the total cost of the refi is around $3k right? And it's rolled into the new loan (which is standard)?
 
You’ll probably get two mortgage interest statements for your 2020 taxes :thumbup sorry my brain is stuck in it for another couple months :party
 
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Bump to the front...where should us youngers be looking to put our money in once the parabola hits the base?
 
kingmoochr said:
Bump to the front...where should us youngers be looking to put our money in once the parabola hits the base?
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A no brainer is to max out your roth ira contribution to an index fund. Index funds have very low fees and you can pretty much set it and forget it.
 
I'm maxed on my deferred comp (19k/yr) but I'd like to position myself to get in on some of the stocks that will be recovering nicely in a year, it's easy to just dump money in funds when the market is good, but I'm looking on a good discount on blue chip-esque investments.
 
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