The Ongoing New Financial Era Thread

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Re: The Ongoing New Financial Era Thread

Postby Blue&White » Mon Feb 11, 2019 10:15 pm

I did a bunch of work on my house and paid for it on a HELOC. It was a big number and the interest rate kept climbing up. The minimum interest payments were getting out of control and I was paying down more on top of that. The final straw for me was when I lost the deduction with the tax break. I ended up refinancing the whole thing with the mortgage. I had to pay a point to buy down to 3.5% but all in I'm paying less per a month than I was when I had the mortgage and the HELOC. And, while I put 6 months extra onto my mortgage payoff (I had 14 years, 4 months to go when I refinanced into a 15 year), at the rate I was paying down the HELOC I would have been paying it off for longer than that. I had it calculated out at one point that it would take me an extra 18 months to pay off the HELOC is I paid my normal mortgage payment into it post paying off my mortgage.

Because I refinanced last year I may be over that $24k threshold for itemization this year and maybe next year. Not sure. The cap on SALT and the loss of some of my wife's deductions may have pushed me into that itemized 24k. We'll see, I guess.
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