IRA Contribution Limits

IRA Contribution Limits By Year

Refinance Your Home as an Investment Strategy

Thanks to record low interest rates, today’s Home Owners have access to a great investment opportunity: Refinance your home and take maximum advantage of the latest IRA Contribution Limits by Year. (If you’d like to see a history of IRA Contribution Limits by Year, refer to the table below). Unfortunately, not everyone can take advantage of these record low mortgage loan interest rates. To find out if you’re particular home mortgage situation is positioned to take advantage of a 4.5% 30-year fixed rate, now is the time to call your friend, the Mortgage Loan Broker. There is a simple check list of questions you can refer to, before you bother your wealthy Mortgage Loan Broker friend who is likely very busy making a bundle of money off of other friends of yours:

Mortgage Refinance Checklist

• Is your current loan value 80% or less of your home’s market worth?
• Do you plan on staying in your home 5 years or longer?
• Is your current interest rate greater than 5.25%
• Do you have a consistent income and job history for qualifying purposes?
• Do you have reasonably good credit?

If the answer is, yes to all of these questions now is a good time to make that call to your trusted Mortgage Loan Broker.

Low Mortgage Interest Rate Savings

Using IRA Contribution Limits By Year as Your Guide

As an example: A $300,000 Home Loan at 5.5% Interest yields a monthly payment of $1656.00 before taxes and insurance. At 4.5%, the monthly payment is only $1520. That’s a savings of $136.00 a month. Over a 5 year period, that’s a savings of about $8,160.00 less whatever your closing costs were to secure the 4.5% loan. The key is to be able to break even after 2-3 years. So, the greater your current interest rate, the greater the savings. If you’re current interest rate is more than 5.25%, the savings are that much greater, and the time span at which your savings will cover the closing costs will be much shorter. With many homeowners still paying 6% or greater on their loans, the opportunity to use the home as investment strategy becomes very clear.

IRA Contribution Investment Strategy

Contribute part or all of your monthly mortgage savings to your IRAs.
IRA Contribution Limits for 2010 are $5,000 for individuals under age 49 and $6,000 for individuals age 50 and older. In this downtrodden economy, my guess is not many of us are investing this substantial amount of money into our retirement. This is unfortunate because $5,000 or $6,000 a year x 2 for a couple can substantially reduce your tax bill. By using these record low mortgage loans to contribute to your maximum IRA Contribution Limits by Year, you’ll be saving on your tax bill and contributing to your retirement at the same time. As you can see by the IRA Contribution Limits by Year chart below, history has never been more favorable to make that investment in our homes.

IRA Contribution Limits by Year

IRA Contribution Limits By Year

This entry was posted on Thursday, October 28th, 2010 at 4:39 pm and is filed under Mortgage Refinancing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.