[Jayhawk]

Originally Posted by b0bd0herty

I started to refi with Citizens First last year to take advantage of the lower rates. they wanted closing costs of $17,000 to refi $300,000. To me, it was just legalized usury and we canceled the loan. Then they said they would lower the closing costs by $7,000 which kind of supported my opinion.

Plan to stay here another (fingers crossed) 25 years and with no one to leave my estate to, will just go with a Reverse Mortgage.

The ONLY things that would cause a refi to have $17,000 in closing costs would be if you were buying the rate down even lower than the "par rate" (the advertised rate) or if you had to have significant upfront mortgage insurance for being over 80% leveraged. There are no standard closing costs that would climb to $17k on a $300k loan. You are leaving out some key facts.

[CoachKandSportsguy]

Originally Posted by tvbound

If I give in to the current requests for consulting piling up, the mortgage will help write-off the additional income.

Yes, but but only getting a 20%-30% reduction in taxes for every interest dollar spent still reduces after tax income by the 80%-70% of interest paid, so the logic is a behavioral emotional response to paying taxes, not a rational plan after tax income maximization approach. A rational after tax maximization income approach is to eliminate all cash expenses, because there is only a tax rate % benefit of additional expenses. - Expense out + tax % savings = cash out of your pocketbook of more than 0 expenses. The only expenses to deduct for income maximization are those required to produce the income. optional mortgage interest is not required in your stated case.

There is never a free lunch for taxes. . and personally, I love paying more taxes because it means that I am wealthier, after all proper after tax income maximization approaches have been applied. . .



sportsguy

[jebartle]

Originally Posted by davem4616

We paid off the mortgage (but not the bond) because it's a nice feeling. After the 2008 crash we became very savvy about where we put our money...keeping all our savings in the stock market hoping to get rich is akin to putting it on a table in Las Vegas. We still have some money in the market as a hedge on inflation, but the overwhelming majority is in other vehicles and investments. For us, it's about enjoying our wealth and sharing our wealth...we are well past the era of accumulating wealth.

Hmm, have I mentioned that there is no bond in lake county!

[rccooper22]

Originally Posted by tsmall22204

There are so many financial know it all's in the Villages. Paying off your home is a personal choice if you can do so. Paying off your bond saves 6%. Do what makes sense to you.

Is the 6% on the bond tax deductible?

[retiredguy123]

Originally Posted by rccooper22

Is the 6% on the bond tax deductible?

Not tax deductible if it is your personal residence and not rental property.

[dewilson58]

Originally Posted by rccooper22

Is the 6% on the bond tax deductible?

Deductible until audit.

[retiredguy123]

Originally Posted by dewilson58

Deductible until audit.

Like everything else.

[lennythenet]

Dep

[tvbound]

Originally Posted by CoachKandSportsguy

Yes, but but only getting a 20%-30% reduction in taxes for every interest dollar spent still reduces after tax income by the 80%-70% of interest paid, so the logic is a behavioral emotional response to paying taxes, not a rational plan after tax income maximization approach. A rational after tax maximization income approach is to eliminate all cash expenses, because there is only a tax rate % benefit of additional expenses. - Expense out + tax % savings = cash out of your pocketbook of more than 0 expenses. The only expenses to deduct for income maximization are those required to produce the income. optional mortgage interest is not required in your stated case.

There is never a free lunch for taxes. . and personally, I love paying more taxes because it means that I am wealthier, after all proper after tax income maximization approaches have been applied. . .



sportsguy

With respect, you've forgotten or ignored the rest of my post. The deduction against potential income is simply an additional part of the equation, with the difference in actualized returns on investments outweighing the mortgage interest, being the primary reason. Pure math and logic, no "behavioral emotional response" involved

[Stu from NYC]

Originally Posted by dewilson58

Deductible until audit.

Do they still do that?

[retiredguy123]

Originally Posted by Stu from NYC

Do they still do that?

No, you can stop filing tax returns now.

Let me know how it works out.

[manaboutown]

Originally Posted by rccooper22

Is the 6% on the bond tax deductible?

If a large entity does not issue you a Form 1098 on interest paid to it the interest is likely not deductible on Schedule A as an itemized deduction. IRS computers match up 1098s and 1099s on interest earned with what is reported on tax returns to assure accuracy and compliance. Of course as previously posted bond interest is likely deductible on a home held for rental as an expense.

"Form 1098. The standard Form 1098 is the "Mortgage Interest Statement," which comes from the company that services your mortgage loan. Mortgage interest on first and second homes is generally deductible for taxpayers who itemize their deductions."

from Guide to 1098 Tax Forms - TurboTax Tax Tips & Videos

[J1ceasar]

Noooooo . Getting money upfront, especially if you decide your going to die early is best

[Garywt]

We actually have 2 mortgages, Florida and Mass. Someday in the next 13 years we will sell our Mass home and just stay in our trailer in NH but for now we have the mortgages which both have escrows to take care of the taxes etc.

[TNLAKEPANDA]

I like being Debt Free