thanks to everyone who replied to my other thread asking for help prioritizing debt. I realize now I will get better advice if I lay out all our finances. Here it goes: me- early thirties. Husband- pushing 40. I grew up in a very non frugal family and both of us have been spend more than we make until now. We have a nice income but this is pretty recent. Most of our debt was from when we were making a lot less and spending way too much. We have two kids- one in preschool one in elementary.
Gross Salary/Wages: me- 93k. Husband- 86k
Pre-tax deductions: 401k- I contribute Ute 7%, husband contributes enough to get a match ~ 180/check. Dependent care spending account-4k (wasn't sure what daycare would be when I signed up for it last year)
Rental Income, Actual Expenses, and Depreciation: income: 1050/month. 10% goes to property manager.
mortgage 122,000 @4.6% - $826/mo
2nd mortgage- 23,215 @ 8.6% -$199/month
Hoa: $205/month (this went up recently from $186)
Current monthly expenses:
Hoa- 240
Mortgage- 1949
Condo loss- 285
Comcast-80
Cell phone- 145
Car1- 550
Car2- 485
Student loans- 300
Car Insurance- 140
Gas/electric-avg 140
Gas- 200-250 - we have long commutes but choose to live near family who help a lot with child care.
Food- 800 (includes all items at grocery store like pull ups, cat food and litter, paper towels, soap, etc)
Daycare- 500
401k loan- 206
Dependent care spending account- 153
I don't have a miscellaneous category, we try not to buy anything unless absolutely necessary. Guessing this category would be under 200.
Total: $6423
Assets: we have just under 100k in our 401k's
Checking: 2k
Savings: 5.5k. We have very stable jobs so I keep this kind of low.
Liabilities:
Student loan 2- 6,815 @ 6.5
Student loan 3- 6,784@ 3.5%
401k loan- ~ 9000 left (took this out last year to pay high interest credit Card debt)
Rental property- mortgage 122,000 @4.6%
2nd mortgage- 23,215 @ 8.6% (purchased during housing boom) Mortgage: 263,100@ 3.75%
Car 1- 28,500@ 2.95%
Car 2- 35,000@ 3.95%
Specific Question(s): I need help getting out of debt! The condo was bought during the boom. We bought our townhouse after our second child was born and we needed more space. It's upside down. If I pay off the second mortgage I could likely sell it- I would love to sell this asap!
Also, i spoke with a mortgage guy from the bank about refinancing our primary residence. We have an fha Loan and need to keep mortgage insurance for 2.5 more years. Mortgage insurance is $247/month. We could refinance to a conventional loan if our house appraises for what we think it will. We would have to bring 15k max to settlement but we would save $375/month. Should I save up $ to do this before paying any debt?
Thanks so much!