Coronavirus: What mortgage help is available?

Resource are available to help including ways to replace your income and relief programs to help make your mortgage easier to manage. Start by identifying who owns your mortgage to determine the programs available to you.

ALSO COVERED:

Freddie Mac relief programs
Fannie Mae relief programs
How to request help from a bank or credit union

Life Planning, Debt ManagementJoshua Escalante Troesh, CFPMarch 26, 2020Young Families, Starting Out, Financial Foundation, Stock Market Crash, Bear Market, Stock Market Correction, 30-year mortgage, 15-year mortgage, Mortgage, Debt Management, Corona Virus, Covid 19, Debt Relief

Is it worth paying points to buy down the mortgage interest rate?

If you keep the mortgage for 30 years it is generally worth it, but almost no one does this for either their home or investment property. If you sell the property in 3 months it doesn’t make sense to pay $10k in points to get a $170 monthly savings. The question is: How long do you need to have the mortgage to make paying that fee (the points) worth it - considering the time-value of money?

Article Also Covers:

How to calcluate the net present value of the bank’s offers
How banks calculate their offers
Estimating how long will you keep the mortgage
The rate of return on alternative uses for the funds
Multi-decade tax planning and mortgage points

Debt Management, Tax Planning, Life PlanningJoshua Escalante Troesh, CFPFebruary 18, 2020Real Estate Investing, 30-year mortgage, Tax Deduction, Tax Planning, Income Tax, Mortgage, 15-year mortgage

Is interest on a HELOC still deductible under the new tax law?

Based on what you have stated, your interest should still be deductible under the new tax law. Whether second mortgage interest is deductible is highly dependent on your individual circumstances, and many are confused by the new rules (as they are honestly quite confusing). You will want to . . . .

Tax PlanningJoshua Escalante Troesh, CFPAugust 8, 2019Federal Income Tax, HELOC, 15-year mortgage, Tax Planning, Tax Deduction

Should I take money out of my 401(k) to pay off my house and save money on the mortgage payments in retirement?

The answer to this question will also depend on how much money you have in your 401(k), what your Social Security benefit is expected to be, and how much your annual expenses will be in retirement. If you have a sizable 401(k) (think more than 15x to 20x your annual . . . .

Retirement Planning, Debt ManagementJoshua Escalante Troesh, CFPDecember 27, 2018Retirement Planning, Retirement & Legacy, Managing Wealth, 30-year mortgage, 15-year mortgage, 401(k), Social Security

Should my wife and I deplete our cash reserves, withdraw from my 401(k), or use a HELOC to finance home improvements?

I would be hesitant to pay for the home improvement either through withdrawing from a retirement account or getting a HELOC. Both options will increase your risk and harm your ability to enjoy a comfortable retirement over the long-term. There are other recommendations you should . . . .