Reply to Best strategy to pay college for 3 kids

Forum Index » College and University Discussion

Reply to "Best strategy to pay college for 3 kids"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]These responses seem to ignore the fact that you have the rental.  We also don't know how much you have in retirement.

We have kind of a similar situation, but #3 is still a HS freshman.  My plan when she goes to college is -- if we need the cash-- to either sell or refinance the rental.  (I prefer sell; DH prefers refinance.).  We are in a slightly better situation, though, because we pay off the house about that same time, so our mortgage payments go to zero (though there are still escrow-type costs to cover).  So in our case, I think we can cover a good deal of the tuition just from those cashflow savings.

Of the two main options, the refinance probably makes the most sense financially, depending on interest rates, because you can deduct the interest costs from taxes as a business expense.  The trick for you is that right now, interest rates are really high so taking equity out is challenging.  (But if you can wait 9 months, it will be better.)

In sum, I would run some numbers on the refinance option, including the increased business tax deduction.  (The only reason to tap retirement is if you realistically think you have over-saved there over the years... and only you can assess that... and even then it's really hard to figure out...).

That is the option we look into refinancing but the interest rate we will loose need to look into is it better to pay high interest on equity loan that the whole mortgage. We can wait 9 months as we have the 529 may be interest rate will be low enough so that the rent will cover mortgagee.

[/quote][/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics