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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote]Home Price $1,250,000 
Mortage $1,000,000 
Equity $250,000 
Cost to Sell $57,500 
Sale Price $1,150,000 
Losses $(100,000)

If you take the haircut now, you walk away with $150K in equity - and in your first year add $36,000 to that. Your 2nd year you do the same, and so on and so forth. Each year that grows by perhaps 6%. [/quote]

I think this is off by $50K.  If the mortgage is $1 mil and you sell for $1.15 mil and there's $57.5K of selling costs you'll have a shade under $100K rather than $150K, not sure if this is reflected in PP's graphs or not.[/quote]

Actually the mortgage is $1,144,000. I think the cost to sell may be closer to 80,000. I'm hoping the sale price will be $1,250,000 or very close to it. So we probably will walk away with nothing and that is a big concern.[/quote]

You said earlier your take-home is 16K - 7K for house - 4.2K for school = 4.8K for everything else (food, utilities, etc.) and it will go up to 9K per year next year when you put your kids in public school right?  4.8K for everything sounds very doable as long as you're not eating out a lot and buying a lot of stuff.

In the meantime, can you either sell some stuff or perhaps rent out one of the rooms/basement of your home to bring in a little extra money?  Also, how old are you guys and what, if anything, has been saved for retirement (including pensions and employer match/contribution to 401(k).[/quote]

We are in our early fifties and have saved some (about $240,000) for retirement but I know it's not enough. We also have college tuitions to pay, so I feel like instead of putting so much into our mortgage we need to be maxing out our 401(k)s and saving $ for college. Part, if not all of the money currently going to private school will probably go to college tuition (unless there is a gap year).[/quote]

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