Should I pay off my Mortgage?
By year end, my home mortgage balance will be about $240k and I’m thinking about paying it off. I’ll have $12k remaining in available funds in my cash account, mutual funds, and checking account for an “emergency fund” after doing this.
Currently, my tax savings from my house payment is about $2,500 for the $13k interest deduction I’m taking. If I pay this off, my taxes will increase this amount but I’m pocketing the money paid to the bank for the mtg & I figure I’ll be re-saving about $20k after taxes per year which I will start using for retirement again (already have IRA & investing 401(k) at work). I’m thinking “why should the bank get $100k interest for my home when I can save this & invest it”. I’m 50 yrs old and don’t care to have a mtg when I retire in about 15 yrs. I am planning on pay increases throughout that time.
It’s a scary thought taking this leap knowing how much cash i’m using but it’s enticing knowing how much available monthly cash i’ll have going forward.
AGAIN – The big question is: Take the plunge or don’t do it???? I need encouragement either way – it’s a lot of money I’m not used to spending all at once but all I’m doing now is sitting on it with little earnings. My house isn’t upside down, it’s value is about $330k.
Interest rate is unimportant. I’m paying 4% over 30 yrs. My deal is, I’m paying the bank over $100k for the life of the loan. I can increase my 401(k) and to the catch-up max & save the rest.
6 mos of bills after the loan paying off is about $6k which includes utilites & I have no other debt, everything is paid in cash (credit cards used paid when i get the bill).
You don’t say what interest rate you are paying on your home, or the potential return on the money you would use to pay off the loan. Also, I don’t know in what area you live, but in many parts of the US you can buy a rental home & collect 10 to 20% return. For example, if you are paying 5% interest, but can buy a rental property with a return of only 10%, you would still have a net return of 5%. Add in the tax savings & it sounds better still. If you know nothing about being a landlord, you can always hire a property manager or real estate agent to do that job for you.
After about seven years of severely declining values in many areas of the country how much more can you reasonably expect? After all, renters are now paying significantly more each month than to own the same home. You might not ever see such high returns on RE in your lifetime. Just to give you another investment option.
Bankruptcy Discharged 8/21/2012?
Hello Everyone, This will be my first post here. I would love all your comments and replys. So on June 14 2012 I filed personal bankruptcy in the Eastern District of New York. Everything was overwheling and my business at the time was faling he is the information in the bankruptcy:
Mortgages: First Mortgage : 1,765,231.12
Home Equity Loan: 61,563.74
Credit Cards/Personal Loans
Bank of America 17,896.19
Bloomingdales/DSNB 11,263.85 Wife
Bloomingdales/DSNB 14,596.45 Me
Capital One 10,563.04
Capital One 5,496.87
Citi Cards 16,584.96
GECRB/ Lord & Taylor 6,598.73
GECRB/ P.C. Richards & Son 9,785.61
HSBC/ Saks Fifth Avenue 18,456.28
HSBC/ Neiman Marcus 13,596.24
TD Bank – Touraneu Watch 9,854.19
Tiffany & Co 35,698.74
Nordstrom FSB 7,459.86
Wells Fargo – Breast Implants 11,859.63
Car Loans/ Leases
2011 Mercedes-Benz E550 4MATIC Sedan – Leased : Surrended
2011 Cadillac Escalade SUV Luxury AWD – Financed : Surrended Balance: $51,263.91
2012 Mercedes Benz C250 Coupe – Leased: Retained (Daughters Car)
Self – Employed : Check Cashing: Annual Income 2011 $483,560.00
I had to surrender personal assets such as wedding bands, rolex watch, furniture, piano, sub zero refrigator, wolf range, hunting rifles, cash, tiffany diamond, womens wearing apperal and much more.
My Credit Scores now TU: 477 EX: 515 EQ 493
Credit Cards: Capital One Visa : $2,000 , Credit One Visa $1,500
My question is how can i rebuild credit and obtain a car loan in future? I know this was long but guys I really need ur help.
Thanks So Much
You can get an auto loan when you have an open bankruptcy. There are many credit unions that offer bankruptcy car loans.You can also use the internet for the same. Search for “auto loans with open bankruptcy” and you will get a long list of online auto financing companies that offer car financing options to people with open bankruptcy.
Although, I must warn you that the interest rates may be very high. If it’s very urgent car purchase, only then opt for bankruptcy. Otherwise, it’s better to wait till your bankruptcy is discharged.
Credit Score In Toilet But No Negative Information?
Just got new mortgage on house. Credit score in May was high 680 (not great ut not horrible). Went online to check score last week and now at 560!! No negative credit information whatsoever. No late pays or collections. I do carry high balances on credit cards and that is why I have never been over 700 but I don’t understand this. I talked with customer service rep at Equifax and she looked at my credit report and couldn’t explain it either. What do I do???
The burden of your mortgage reflects poorly on your credit score.
Think of it this way- If i let you borrow $100 dollars this week and you promised to pay it off slowly. Then you asked me for more. I would want you to pay off the first $100 first.
I’m not saying it’s fair BTW. It is total crap. You’ve been a good person, and they still manage to punish you. But that is how they get away with charging interest rates that are astronomical.
Item reported as unpaid on my credit report.. I have proof its been paid…disputes not working?
In 2004 I didn’t pay a bill and it went to collections, I paid that collection agency and I have a letter proving that the account has been paid. Some how, a new agency got the account in 2008 and they are reporting it as unpaid. I have filed a dispute with the credit bureau who has it reported, I filed a formal (written) letter of dispute with the agency, I have called them about 20 times. I thought it was taken care of in 2009 because I was able to get a mortgage. However, I just checked my credit report and its still there. How do I get this off? Isn’t it illegal for them to report it when I have provided them with a copy of the letter saying the balance has been paid?
If you have it listed on the Trans Union report, there should be a reference number on the top right hand side. Just write it down and call Trans Union customer service toll free @ 1-800-916-8800, then type in the reference number. That should transfer to a live rep. Explain the situation and they should be able to resolve it for you.
I just wanted to know if i have any legal case here. On Aug 1?
MOORHEAD, CLAY County, Minnesota Legal categories:Mortgages
Case summary:PaymentCase description:I just wanted to know if i have any legal case here. On Aug 10 Ireceived a call from my mortage company due to the fact I was behind on my payments (husband laid off), we made payment arrangements so I could catch up. A payment of 1463.00 was to come out of my checking account on Aug 24th which was ok, however I got paid on Aug 21st and made an online payment to my mortage company and e0mailed them the same day at 10:45 to advise them that I made the arranged payment on Aug 21st and to please not take out a second payment on the 24th. On Tuesday Aug 25 I was informed that I was overdrawn on my checking account and when I looked into this I saw that 2 payments had bee taken out by GMAC. I called them that day and was informed by the company that they would put one of the payments back into my checking account, the next day it had not be done so I called GMAC again and talked to a floor manager and was told that I would not be getting a payment back becuase it was not their fault even though they had put me into a negative balance -1463 in my checking account and I had to get a loan form my bank to cover the loss. Can they do this or can I do something legal about it
I would threaten them with “forced default” on the new agreement until the money is refunded, because now you are no longer in a position to keep up the payments.
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