My income after tax & deductions (medical, 401k, mass transit): $9,000/mo. $1,700 a month going into 401k including employeer match.
Current Avg Monthly Expenses
1st Mortgage $1750 includes $450 per month for prop taxes and $60 per month for homeowners ins.
2nd Mortgage $300
Heat, Electric, water, trash $250
Car payment $500
Credit card (2.99% fixed) $60
Student loan $80
Car insurance $40
Term life $40
Parking $25
Kids school $400
Gasoline $200
Groceries $1000
Other $655 (dining, shopping, kids activities)
$5,300 per month spending
Assets
401k $136,000
checking $16,000 @ 2.5%
I Savings bonds $16,000 @ CPI
CD's $13,000 @ 2.5%
IRA $5,000
college savings $9,000 (3 young kids)
investments $5,000
property value $185,000 (well underwater on mortgage)
Company stock $150,000 vests over next 5 years; after tax; $20,000 vesting late May
Cash Bonus $35,000 after tax available late march
Paid-off car $3,000
Total $443,000 (excluding stock that vests over a year from now)
Debt
mortgage $203,000 @ 4.875% (25 years left on a 30 year fixed)
2nd mortgage $34,000 @ 8.125% (10 years left on a 15yr balloon)
student loan $20,000 @ 2.25% fixed
Car $26,000 @ 0% interest (value $18,000)
Credit card $4,500 balance @ 2.99% fixed
Total $287,500
Objectives - family of 5. Our life is hectic, I work a lot, my wife stays at home to take care of 3 young kids. I want to get out of debt and on track to retire early so I can work less. What is best way to tackle / refi mortgage debt given underwater and current rates?
Longer term I'm interested in owning a rental house and saving for kids education and eventual full retirement.
Please help me plan out some next steps to execute this strategy, especially given near term bonus $ and stock vesting. Thanks!