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30-Year Fixed Mortgage Rate Falls Further, Below 4% for Seventh Straight Week

The current rate borrowers were quoted on Zillow is 3.82 percent.

Reverse Mortgage Scams to Watch Out For

A reverse mortgage can provide older homeowners with an additional stream of income in retirement. Reverse mortgages allow eligible homeowners to tap into their equity, without taking a traditional home equity loan. But are reverse mortgages a scam? No, but … Continue reading →

The post Reverse Mortgage Scams to Watch Out For appeared first on SmartAsset Blog.

Qualifying for a VA Loan When You’re Retired

You’re a veteran who decided to retire. Now you can enjoy the time off and move wherever you’d like. However, you don’t have the same type of income, and you’re […]

The post Blog first appeared on MilitaryVALoan.com.

Should you pay off your mortgage early?

My friend Amy recently wrote with an interesting dilemma. “Should I pay off my mortgage early?” she wonders.

Amy has a high-paying job and has managed to save enough that she could be completely debt-free if she wanted to. And she kind of wants to! But is this the best choice? She’s aware that this is a nice problem to have — but it’s still a bit of a muddle. She’d like some guidance.

Here’s an abridged version of her email:

I’m wondering if you have any advice for me related to paying off a mortgage vs. keeping it for tax purposes.

Here’s the basic rundown: I have 22 years and $103,000 left on a 30-year fixed-rate mortgage at 3.95%. My monthly payment is $668 per month. I will pay about $48000 in interest this year. I pay both my taxes and insurance out of pocket annually.

The past two years, I’ve made close to a quarter of a million dollars each year, and this year I will likely exceed that amount. This is a wonderful place to be. With no other debt, I’m contemplating whether I should completely pay off my mortgage in one swoop come November when I get my bonus.

I have advice coming from both sides. My accountant warns me against it, as I would have no other write-offs to offset my high income. However the freedom of being DEBT FREE sounds amazing, even if it comes with a high tax bill.

I would love your advice (or the advice of your readers, if this offers an opportunity to share with them).

My stock answer to this question — which I get a lot — has always been: This is a no-lose situation. Deciding whether you should pay off your house is a case where either option is awesome.

Mathematically (and financially), the best choice is almost always to carry the mortgage. However, many people receive a huge psychological boost from not having a mortgage. In other words, this is one of those situations where the smart financial decision and the smart psychological decision aren’t necessarily the same.

Although Amy is asking specifically about the tax implications, let’s start by examining the Big Picture.

The Pros and Cons to Paying Off Your Mortgage

Just so everyone is on the same page, here’s a quick look at the pros and cons to paying off your mortgage. There are advantages and disadvantages to both choices. Are certain advantages more important than others? You make the call.

Cool listings: Newly-built house in affluent Washington, DC suburb wows with its clean lines, modern design

The Oakton, VA home blends contemporary European architecture with ultra-luxurious finishes, and the end result is a strikingly modern home with a clean, eye-grabbing design — both inside and out.

Understanding the differences between tax credits, deductions, and adjustments

When it comes to your taxes, knowing the lingo is key to understanding them. What’s the difference between a tax credit, tax deduction, and an adjustment? We’re here to help you find out!Although the terms are used interchangeably, tax credits, deductions, and adjustments are three different things.

The post Understanding the differences between tax credits, deductions, and adjustments appeared first on Money Under 30.

Social Security Benefits Will Increase by a Record 8.7% in 2023

If you’re on Social Security, you can expect your check to increase by 8.7% in January. That’s the biggest cost-of-living adjustment in four decades. The Social Security Administration made the announcement Oct. 13, the same day new inflation numbers were released. Here’s what that will look like for the average Social Security recipient: Retired workers […]

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

Taxpayers Lose-Lose with Federal Student Loan Future. All Options Really Suck.

Last August, President Biden announced his plan to forgive between $10,000 and $20,000 in student debt to individuals who make less than $125,000 a year. He also extended the pause on making student loan payments until at least midsummer. Who could object? Turns out, a lot of folks objected. The NAACP didn’t think Biden’s plan was generous …

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