the mortgage should I cash out?
The house I live in a mortgage of 200K at 5% for 30 years (which is 2 years and I am 50 years old, if you see the problem there). My old house now a rental property, an output of fairness at home against the 50K I borrowed at a rate of 3%, which I am now only the interest payments. I spent 60K and now can not figure out what to do for the best. If I understand correctly, the interest will be requested on the line of equity on the property against rental income, thus paying taxes on income dollar for dollar. Mortgage payments on the house I live in are also tax deductibility as I itemize deductions, but not dollar for dollar, but only a part depends on the tax bracket. So what I “m thinking is – if I pay the home equity (3%), which will increase my monthly income by the amount of payments (127) but I am using a higher tax bracket Push Conventional wisdom says to pay. the higher interest loans first – but when I put the 60K on morgtgage others (5%) is not affected by my income at all – all of them will , decrease the length of the loan (unless the refinance I do what I want to do) This will also reduce my tax deductions that I reviewed the situation correctly, or is there something I missed, I I need more income -..? I am a single mother with a lot of repairs and home health, I want this money to use it to generate additional revenue, but not only fully spent, then he disappeared. On the other hand, I do not want to overlook the significant tax issues. But I wonder if all the business tax is a sham, since. I’m only in the tax bracket of 15% Thank you for your contribution) wow, thank you all, it is so great that there are people out there willing to share what they know about the Forum @ How can I help you your advice was -. pretty much what I thought – wait a few years to sell the old house and then repay the Kit @ -. I never really knew what was a pension – so thank you for my education about this opportunity I did some research and I think that’s an option to consider. It is difficult to understand what the interest rate on payments, though. They do not say that on the websites. If it is less than 3 %, then it still makes sense to pay to take the equity loan to buy the annuity 50K (I think!)