mortgage for dummies

Actually... married couples pay extra in taxes in the States. They call it the marriage penalty. It averages out to be about $500 extra bucks a couple. The tax law used to be advantageous to marrieds from WW1 up unto 1969 until the tax law changed. It flipped over to hurting married couples... and in 1993... it became even worse.
 
Funny, I used to pay taxes every year until I was married...but perhaps it was the earned income credit that was helping me.
 
unclehobart said:
...in 1993... it became even worse.
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Thanks to the GW tax cuts, (shouldn't those have been made permanent by now) it was wiped from the books & is no longer a burdensome monkey. Add to it the $1000 per child tax credit & all is well in the land of matrimony, on a tax basis at least.
 
Gonz said:
If you apply your entire tax refund to your principle (only) every year, it's suposed to cut something like 4-6 years off your mortagage.
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'kay so ... everything i'm paying in the beginning goes toward interest, but i can also start hacking away at the principle? and once i chip away some of the principle, my interest will go away faster ...

am i on the right track?
 
tonksy said:
Ku'u shouldn't be paying extra taxes on account of being married with children.
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thanks, tonks ... you know what's stuck in my mind now ... "love and marriage, love and marriage, it's an institute you can't disparage, ask the local gentry, and they will say it's elementary ..."
 
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kuulani said:
'kay so ... everything i'm paying in the beginning goes toward interest, but i can also start hacking away at the principle? and once i chip away some of the principle, my interest will go away faster ...

am i on the right track?
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Yep. Every check you write has a little more going toward principle. From pennies on the dollar in the beginning to almost all of it by the end. However, the lower your principle, the less interest you'll garner, thus lowering the burden later.

Another way is to also apply a little more each check than really owe. Make your $468 check $500. There are arguments for and against that method. If you do so, make a note stipulating that the extra money goes only and completely towards principle. Otherwise, it won't work as well.
 
It doesn't matter where you are, single people pay a greater proportion of their income in taxes... Bastard Tax Man!
 
There is equal protection. Tax laws are not legal anyway.

Nixy said:
And when someone's spouse dies or when someone is still searching for their life partner they should be punished?
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Incentives are not fair. Nor should they be.
 
Which? Hoping that the tax laws would just go away or the ones that say life ain't fair?
 
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