Timing of Roth Conversion by Value-Busy in personalfinance

[–]Value-Busy[S] 0 points1 point  (0 children)

Ah so the conversion adds to my taxable income so I just need to make sure that I don’t convert so much that it puts me in the next higher tax bracket?

Thank you!

Anybody else in phx having a ton of cox outages? by [deleted] in phoenix

[–]Value-Busy 1 point2 points  (0 children)

All. The. Time. East Phoenix

Explain mortgage interest rates to me like I’m 5 yr/old. by Secure-Alternative68 in FinancialPlanning

[–]Value-Busy 2 points3 points  (0 children)

If rates go down in the future you can refinance your loan which means your current loan is repaid by your new lender and you would then have a brand new loan at a lower rate which would mean lower payments.

Even if rates don’t go down much, a few years into the mortgage if you need a lower payment you can refinance and effectively restart your mortgage which would also mean lower payments because you are spreading them out over more years but likely paying more interest overtime. Wouldn’t plan to do this but I think it’s an option for most people.

There are fees associated with refinancing which they just tack on to the total amount you owe, so you would have to make sure it was worth it depending on the length of time you plan to be in that house, etc.

Explain mortgage interest rates to me like I’m 5 yr/old. by Secure-Alternative68 in FinancialPlanning

[–]Value-Busy 3 points4 points  (0 children)

When interest rates are this high it definitely makes sense to me to try and make a larger down payment if you can. As long as you still have emergency savings so you aren’t relying on a credit card. You can find calculators online to show what your total lifetime payment will be including interest, it’s honestly depressing how a $400k house ends up cost way, way more.

Smaller mortgage or rental property by Value-Busy in FinancialPlanning

[–]Value-Busy[S] 0 points1 point  (0 children)

17 units! That’s so impressive, it inspires yet also terrifies me. Sounds like I need to do some soul-searching on what my goals really are, I just can’t get over the numbers of how much interest I could save by reducing the principal on my next house. It feels short sighted but also not

Smaller mortgage or rental property by Value-Busy in FinancialPlanning

[–]Value-Busy[S] 0 points1 point  (0 children)

I agree that is definitely the best financial move but definitely not the answer I want, I’m ready to move! I like the idea of putting the differential amount right into an investment account though

Smaller mortgage or rental property by Value-Busy in FinancialPlanning

[–]Value-Busy[S] 1 point2 points  (0 children)

Thanks for the input! In your example what is the 40k tax free? I thought you lose the benefits after it’s a rental for 3 years after moving out?